TRX is short for Tronix and is the official native cryptocurrency of TRON.
TRX works in several ways. Being the de facto token of the Tron economy, it can be used as a medium of exchange, as an investment and as a bridge currency between different platforms and other Tron tokens.
TRX utilizes blockchain technology, and transactions are done peer-to-peer. TRX transactions are fast and have low fees.
It can be found on numerous exchanges as discussed in detail below and is currently the 10th largest cryptocurrency worldwide.
What Are the Main Functions Of TRX and Its Use Cases?
While Tron is as flexible as any other top cryptocurrency in the market, here are some of the most crucial functions of TRX:
- Digital currency / Medium of exchange
TRX is the main medium of exchange in the Tron ecosystem. This includes payment for or earnings from the 100’s of Tron-based decentralized applications (DApps). TRX can be sent or received by anyone who has a Tron Wallet anywhere in the world. It can also be used to pay for goods and services as a form of digital cash like Bitcoin.
- To provide rights and privileges
Holding TRX tokens provides you certain rights and privileges in the ecosystem, especially if you voluntarily have them frozen (locked) in exchange for Tron Power (TP). This will activate voting rights in Tron elections. If the TRX is unfrozen the votes become invalid until they are frozen again. TRX holders also benefitted from a BitTorrent Token (BTT) airdrop where they received free BTT.
- To create TRC10 and TRC20 tokens
TRX can be used by content creators and Dapp developers to create their own tokens hosted on the Tron blockchain. Each time someone creates and issues a new TRC10 token they pay a fee of 1024 TRX which is then burned (permanently removed from the supply). This helps to reduce spam on the network and promotes the creation of quality tokens.
- An investment
TRX has appreciated significantly in value since its launch. However, its price can be extremely volatile moving in both directions so it would be considered a high-risk / high-return investment. From its launch to its all-time high in January 2018 TRX increased by more than 10,000%. However, since then its price has decreased by more than 90%.