Tron is one of the most well-known platforms powered by blockchain technology, but the project supearheaded by Justin Sun has had a harsh last couple of weeks. Amidst allegations of illicit financing, gambling, and even reports of an exit ban, it was announced on Jul. 25 that Justin Sun had to reschedule his high-profile charity lunch with Warren Buffet, reportedly because of kidney stones affecting Sun’s health. An apology from the Tron and BitTorrent CEO followed, where Sun confessed that he had a problem of “over-marketing” his products. Soon after, however, Sun struck back by announcing the Aug. 10 release of the Sun Network, a “100x scalability solution” for Tron.
In this overview, we will take a look at the features of the Sun Network and its impact on the price of the Tron cryptocurrency.
After placing a $4.6 million bid for a lunch with billionaire investor Warren Buffet, the future of Tron seemed full of hope. However, Tron’s public image took a hit due to the multiple accusations from Chinese media outlets and the subsequent cancellation of the lunch. In this context, Justin Sun’s tweet announcing the release of the 1.0 version of Sun Network seemed like a godsend for the future of the platform. In reality, the announcement was nothing more than fortunate timing from Tron; they had talked about the project and promoted it back in April, but promotion died down a bit once the Sun Network entered its testnet stage in May. Even back in April, the official launch date for the Sun Network had already been set for Aug. 10. It just came at a very fortunate time.
Justin Sun announces the future release of the Sun Network, Tron’s scalability solution.
The Sun Network is a layer 2 scalability solution for the Tron ecosystem. Basically, it is a solution that involves the creation of a sidechain (dubbed DAppChain) whose main priority is the application of smart contracts. The decoupling of the DAppChain from the main chain of TRON allows for customized chain parameters, which will be reportedly optimized to run and support decentralized applications more efficiently than the main chain. The Sun Network will also allow developers to use the 1.0 version of the network to develop their own sidechains.
In more specific terms, the DAppChain will reportedly offer free transactions, a higher free energy limit, cheaper energy units for lower development costs, faster block production, a longer smart contract execution time limit for more complex contract transactions, and, of course, more overall scalability. According to its official website, the DAppChain will “allow DApps to run with extremely low energy consumption, high security, and high-efficiency online operation.”
The new sidechain will also make use of TRON’s DPoS (Delegated Proof of Stake) consensus mechanism. Additionally, since the smart contracts will be on both the main chain and the DAppChain, depositing and withdrawing supported assets (TRX, TRC10, TRC20, TRC721) will also be possible between different chains.
Supposedly, the Sun Network will also include its own set of development tools, which includes a complete set of multi-platform developer SDKs, browsers and wallets that are compatible with the main chain, and will help developers improve efficiency and reduce learning costs.
Even though the main idea behind the Sun Network is the creation of a dapp-oriented sidechain, the project is to be understood as an all-encompassing solution that improves things for the main chain as well. This is at least according to its official website, which states that the Sun Network is also designed to “provide unlimited capacity for the TRON main network to support the growing number of transactions”.
This statement stems from the fact that creating the DAppChain should take pressure off the main chain, thereby improving its throughput. The Tron Network is allegedly capable of handling 2,000 TPS. At press time, however, the maximum recorded TPS for Tron is 748, while the current TPS oscillates between 30 and 50. That’s already higher than that of Bitcoin and Ethereum, and having the DAppChain should improve TPS even more, but an “unlimited capacity” for transactions has yet to be proven.
While the price of TRX took a tumble since Justin’s money laundering accusations surfaced and his lunch with Warren Buffett got postponed, the announcement of the upcoming release of the Sun Network could have potentially helped drive its price back up, even if it was just for a handful of hours. At the time of Justin’s tweet on Aug. 5, the price of TRX was at $0.021968. It then went up to $0.023499, gaining 6.96% in value over the span of almost 11 hours.When compared to Bitcoin and Ethereum, whose prices increased by 8.5% and 5.8% respectively, the announcement doesn’t seem to have had much importance. Since then, the price of TRX has gone down 5.41% to reach its current price of $0.022226.
This, coupled with the fact that the spike in price recorded hours after the announcement is still considerably lower than the price that TRX had in previous months, shows that ultimately, the announcement may have had a rather short-lived effect, if any at all, on the price of TRX.
The price of TRX had a slight recovery after the Sun Network announcement, but it only lasted for a couple of days.
The Sun Network is a solution that aims to bring even more scalability to a protocol that has throughput as one of its main strengths. However, something seems to be amiss in the Tron world, judging from the lackluster impact of the announcement in the market. Even after recently apologizing for over-marketing, Justin Sun and Tron have continued the platform’s aggressive marketing style. Touting the Sun Network as a “100X scalability solution” that will provide the main chain with “unlimited capacity” to support transactions is the kind of larger-than-life advertising approach usually associated with new projects and ideas, and people seem to be growing tired of it with Tron. Maybe things will take a turn for the better for Tron once the Sun Network is launched, but it seems like the recent controversies and over-marketing have temporarily muffled the hype.
Thank you for reading,
The COIN360 Editorial Team