TRON is a decentralized platform that is based on blockchain technology. The main aim of TRON is to build a free, global digital content entertainment system with distributed storage technology. Currently, the price of TRON (TRX) is $0.04691, with a global market cap of $3,370,961,842 at the time of writing. It has proved itself to be one of the most successful cryptocurrencies in recent times. It ranks in the 24th position on the CoinMarketCap crypto ranking. Before you decide to invest in Tron or want to know how to mine Tron, you should have a thorough research about the cryptocurrency.
The Proof of Stake Algorithm
Tron is based on the Proof of Stake (PoS) algorithm. It works on the principle of validators of a randomly-chosen block. In this principle, validators can increase their chances of validation by holding a larger number of stakes.
The Proof of Stake has become quite popular over a very short period as it is more environmentally friendly. It is being widely accepted in the crypto space, and some top cryptocurrencies are based on this technology. Tron uses a delegated version of the Proof of Stake algorithm, where the network is being secured by the people staking their tokens and validating the transactions. They are rewarded with coins for this.
How to Mine Tron
One of the most frequently asked questions is how to mine Tron. Technically, Tron (TRX) cannot be mined as it is based on the PoS algorithm. One has to earn Tron by staking the coin. The more Tron tokens you have, the more chances you have to earn more TRX tokens. This supply is kept under control by token creation fees, transaction fees, etc. All the Tron coins are already placed. Therefore, there is no need to mine outside this to get more Tron coins.
If you are thinking about mining TRX tokens, then mining them through GPUs is considerably more efficient than mining on your CPU. You also need to find a suitable Tron wallet for holding your cryptocurrency. After you install your Tron wallet, this will serve as a username at the Tron-mining mining pool. One should always keep one thing in mind before mining Tron. And that is to make sure to check mining profitability charts so that they just don’t burn their money.
There are two types of Tron miners. One is the graphics processing unit (GPU), and the other ones are application-specific integrated circuit (ASIC) miners. The latter one is more energy-efficient than the former one. However, GPU has a higher resale value due to the use of multiple GPUs. ASIC miners have their own mining pool, while GPU miners use a third-party mining pool.
Is Tron Worth It?
Tron is one of the growing cryptocurrencies and is expected to do a lot in the future. If you are thinking about mining Tron and wondering whether it is a good investment in 2021, then it won’t be wrong to say that Tron holds a lot of potential for the future. After you have done thorough research on the market trends, then it will be a wise idea to invest in cryptocurrency.