TRON offers a potential platform for DeFi ecosystem, courtesy higher scalability and lower gas feesOctober 24, 2020
Founded in 2017, TRON is one of the most promising open-source blockchain platforms in the current crypto sphere. Built on a decentralized infrastructure, the network has earned kudos from several quarters for its high scalability, high throughput as well as high availability of DApps. TRX is the native token of TRON blockchain.
The year 2020 seems to have been a bullish year for TRON with TRX price up by a solid 92.5 percent rise year-to-date. The platform is increasingly showing huge potential as a major DeFi portal, throwing a serious challenge to current DeFi giant Ethereum.
Higher scalability than Ethereum
Ever since the inception of the DeFi ecosystem, most of the DeFi applications have been built on Ethereum. With the DeFi boom in recent times, more and more DeFi users are frequenting the ETH network which has eventually triggered a couple of problems on the Ethereum platform. Ethereum has always suffered from scalability issues and presently is struggling to handle the sudden influx of DeFi transactions which seems to be increasing each passing day. This has led to serious network congestion and exorbitantly high gas fees.
This is where TRON aims to offer a better alternative. Built on a more advanced infrastructure, TRON assures way higher scalability than Ethereum which makes it more compatible to accommodate the growing number of DeFi transactions today. In regard to numbers, while Ethereum is stuck to 25tps (Transactions per second), TRON wins hands down with a massive 2,000 tps.
Lower fees than Ethereum
On the other hand, TRON allows users to bypass gas fees which cuts down on the DeFi transaction cost by a great extent. TRON’s smart contracts operate on dual-format systems. Users here have that facility to freeze (stake) the TRX tokens to access the network bandwidth and energy. And in doing so, they can forgo the gas fees needed for operation of smart contracts. This way, users are able to carry transactions on the TRON network easily without paying the gas fees till the period they decide to keep their tokens frozen.
Besides, Ethereum’s higher gas fees are largely caused by severe network congestion issues. As TRON promises way higher scalability, there will be less congestion and hence lesser gas fees.
Proactive participation in DeFi ecosystem
TRON CEO Justin Sun has always been very transparent about their constant initiatives to welcome the rising DeFi boom. They have already launched a number of DeFi apps on TRON network which are a clone of major DeFi apps operating on Ethereum blockchain. One good example is JustSwap which is a replica of the famous Uniswap on ETH platform.
Then, this year only, TRON claimed big headlines with the launch of the state-of-the-art SUN genesis mining program which is designed to serve as a solid incentivization layer for the blockchain’s (TRON) DeFi ecosystem.
Moreover, a new decentralized oracle has recently been introduced on TRON blockchain to cater to TRON smart contracts. Titled “Bridge Oracle”, it is the first ever dedicated public oracle for the blockchain and will empower TRON to move a step further in its DeFi aspirations through steady provision of authentic reliable external-world data for DeFi applications.
DeFi applications need credible real-life data to operate at their best. Being a decentralized oracle, Bridge oracle can source off-chain data from various sources which enables easy verification of data. It also allows adding various kinds of proof to validate authenticity of injected data which empowers the oracle to promise credible tamper-proof external world data for the TRON network for best functioning of DeFi applications on the blockchain.