The Tron project is an ambitious undertaking launched in 2017 by a Chinese entrepreneur Justin Sun. It is a decentralized peer-to-peer network that caters to the needs of the entertainment industry. Tron has its own native cryptocurrency called Tron (TRX). This coin is mainly used to pay for the platform’s entertainment content or gain special access to the platform’s resources.
In this Changelly article, we are going to talk about Tronix staking – a way to mine crypto without buying expensive rigs and wasting lots of electricity. We will see if it’s possible to mine TRX in a conventional sense and discuss the difference between PoS and DPoS protocols, as well as the mechanism behind TRX staking.
If you are a Tron holder, this article on Tron (TRX) Price Prediction for 2020-2025 might also interest you.Is It Possible to Mine Tron Cryptocurrency?
Tronix is a Delegated Proof-of-Stake coin, meaning that it’s not possible to mine it the same way users mine, for instance, Bitcoin or other altcoins based on Proof-of-Work consensus protocol. DPoS coins are mined by staking. To get a better understanding of the DPoS algorithm, we should first examine how Proof-of-Stake, its mother algorithm, works.
In brief, PoS enables crypto holders to stake coins in exchange for a reward. A user places a certain amount of crypto on their wallet for a certain period of time, taking into consideration that they can’t withdraw the coins, trade them, or send them away.
This way a user’s computer serves as a node. The more crypto there is on the wallet and the longer the period of staking is, the more likely the user gets chosen to validate a block and receives a reward. The validator selection process is based on a combination of different factors (like the wealth and the age of the node) and is semi-random.
Now, back to Tronix. As it is based on the Delegated Proof of Stake protocol, the staking process is a bit less straightforward. S...