Yerevan (CoinChapter.com) — Blockchain network Tron (TRX) has issued over $30.9 billion Tether (USDT), founder Justin Sun revealed in a tweet. It currently boasts as being the largest supplier of Tether among all blockchain platforms.
“Congrats on TRC20-USDT reaching the milestone of 30 Billion, as the best-performing stablecoin with immediate transactions and free handling fees on TRON,” Sun wrote in an announcement on Twitter.
For most of its existence, Tether has claimed to be a stablecoin, pegged to the US dollar at the ratio of 1:1. However, after coming under the scanner, it was forced to admit that the coin is not 100 percent backed by cash. Evidently, it also includes cash equivalents and assets. This is a big red flag for investors.
Other than Tron, Tether issues its stablecoin units, dubbed as USDT, on blockchains of Ethereum, Omni, Algorand, Bitcoin Cash, EOS, Liquid Network, and Solana. Ethereum was always the largest issuer of Tether. However, not too long ago, Tron surpassed Tether’s supply on sworn competitor Ethereum’s network.
Tron Founder Justin Sun is one of the most active social media users in the crypto world. The flamboyant founder of the blockchain-based operating system is famous for the active and bold promotion of his company. Tron boasts of having a number of products, such as the TRX Tron coin, Tron Wallet, BitTorrent (a decentralized communication protocol for peer-to-peer file sharing), and Steemit, a blockchain-powered blogging platform.
In 2019, Justin Sun made global news after shelling out $4.57 million to have lunch with Warren Buffett. Tron has ambitious plans to create a platform for smart contracts and effortless transactions. With this, Tron wants to compete against Ethereum, a rival decentralized, open-source blockchain with smart contract functionality. While Tron has floated TRX as its native cryptocurrency, Ether is the native cryptocurrency of Ethereum.
Tron lets developers build decentralized applications that can run on smart contracts. However, Ethereum does that already. So how is Tron any different from Ethereum, and why is it making the news if what it does is already available in the market?
As the market for cryptocurrencies increases, the traffic also generated increases. This generates a lot of pressure on the blockchain platforms responsible for ensuring speedy and secure transaction settlements.
The traditional platforms such as Ethereum — for now — cannot execute contracts at the speed customers want to see executed. In contrast, competing platforms such as Tron offer a better solution.
To put this in scalability terms, Tron can handle 200 TX/s (transactions per second), whereas Ethereum can handle only 25 TX/s. Justin Sun blockchain’s transaction speed is better than that of Bitcoin as well, which manages to deliver only a maximum of 7 transactions per second.
In what comes as an additional advantage for Tron, it can produce 3 blocks per second, unlike Ethereum, which takes 15 seconds to produce one block.
Coding on Troy is also budget-friendly. It charges a fraction of a cent in fees in sharp contrast to the average of $20-$200 on Ethereum. High fees have also contributed to Etherium losing the battle to Tron.
Tron has also successfully projected itself as a more developer-friendly platform. Etherium mainly runs on Solidity (an object-oriented programming language for writing smart contracts). In its turn, Tron supports several programming languages, including Java and Python. This makes the platform more accessible to developers who can code smart contracts without having to learn Solidity.
Another important distinguishing factor is the following. Tron uses a delegated Proof of Stake (PoS), unlike Etherium, which still uses Proof of Work (PoW).
With a more competitive and customer-friendly platform, it is not surprising that Tron has become the highest issuer of Tether.