Ethereum and TRON. The first one is a blockchain old-timer, rightfully considered to be the popularizer of the initial coin offering model that gave many people the opportunity to create their own online business. The second one is a younger platform whose main idea is the freedom to create and use entertainment content on the Internet. It is a kind of decentralized Internet, an ecosystem that eliminates intermediaries between consumers and content creators, thereby increasing the income of the latter.
At first sight, these two blockchains are completely different, but they turned out to be two most popular platforms for launching decentralized applications. That’s why it was impossible to avoid comparing them. So, let’s begin!
Throughput
One of the significant advantages of the TRON network over Ethereum is the number of transactions per second. Whereas ETH allows 20–45 transactions per second, TRX’s throughput is several times higher. However, Ethereum developers don’t consider this critical, citing the fact that Bitcoin network has a throughput of around 7–10 transactions per second, and this does not prevent it from dominating in the cryptocurrency community.
Moreover, it is believed that after the launch of ETH 2.0, the network will be able to handle about 15,000 transactions per second. Vitalik Buterin himself aims for a throughput of over 100,000 transactions per second.
Consensus, Cost and Price
Another difference between Ethereum and TRON is consensus algorithms used in these networks. In case of ETH, we are talking about a well-known PoW-consensus (proof-of-work), which is based on proving blocks by making a mining operation (Bitcoin network also runs on this consensus). Tron uses Delegated Proof-of-Stake, which is a kind of delegated proof of ownership. This is an algorithm where transactions are not confirmed by all network nodes, but by regularly elected super-representatives, who are rewarded for evaluating blocks. Representatives change every 6 hours, each new block is mined in an average of 3 seconds, and the reward is 32 TRX tokens. Part of the reward is redirected to cryptocurrency holders who voted for the node.
TRON commissions are minimal, which is not the case with Ethereum. Moreover, TRX developers are constantly working on methods to reduce commissions and even give users the opportunity to make a certain number of transactions absolutely free.
Yet there is an upside to all of this. The scheme used in TRON implies the possibility of buying up votes by super representatives, which, in theory, could lead to a strong centralization of the network. Moreover, although the coin’s exchange rate seems stable due to the fact that the company periodically buys TRX, burns it, and then issues new ones, but the price of this cryptocurrency can fluctuate a lot due to scandals related to the company and its founder. Selling more than 6 billion TRX coins on the Binance exchange in January 2018 is just one of such cases. Justin Sun himself was associated with this event, but the founder of TRON reported that the account on Binance does not belong to him. The situation has never been finally clarified.
At the same time, despite the disadvantages of the Ethereum network, the price of ETH itself is actively growing. Recently, the coin not only reached its all-time high ($1500), but also broke the record. At the moment of writing this article, the price of ETH is over $1,631.
ETH developers don’t sit back either. Some time ago, Vitalik Buterin, the co-founder of Ethereum blockchain, in a series of tweets talked about the plans to update the Ethereum 2.0 network, so that the network could be super-scaled. More than half of all existing cryptocurrency projects and tokens are based on Ethereum (ETH), which is heavily overloading the network. The upgrade will remove the scalability constraints, which means that the gas charges should drop significantly.
Conclusion
Each of the two blockchains that we’ve examined has both strengths and weaknesses. However, this does not prevent them from remaining highly profitable for those who hold their coins. In the end, it doesn’t really matter which network you prefer. The truth is, we don’t have to choose only one of them. We can use both networks with equal success. Go for it and make money!
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