TRX vs ETH: What Is Better Investment? Ethereum spearheaded the smart contract industry when it was launched in 2015. Its implementation skyrocketed the use cases of blockchain technology, allowing the deployment of tokens and decentralized apps.
However, not everything was perfect in Ethereum’s ecosystem. Mass adoption of the protocol was hampered by scaling problems, high gas prices, and obscene energy consumption. As a result, a wide range of competitors emerged in the markets, all trying to solve these issues in some way or another.
The Tron network came as a direct competitor to Ethereum, providing faster and cheaper transactions. In this article, we compare TRX to ETH and try to assess which one of these cryptocurrencies is more future-proof.
To this end, we compare some of their fundamentals, including security, decentralization, and consensus mechanisms. Let’s get started.
Table of Contents
Ethereum vs Tron: Network Security
Ethereum was already considered one of the most secure networks in the industry while it was still running on a proof of work consensus. Millions of miners were securing the network, making it impossible to compromise. That said, since the merge toward a proof of stake protocol, this security has been increased even further.
While miners were numerous, they were also pooled into big miner farms and corporations, making the process somewhat centralized. Now, Ethereum has more than 500,000 active validators, ensuring that transactions are confirmed securely. Additionally, since Ethereum has been around for so long, many of its protocols have been battle-tested and crucial dApps like Metamask are ensured to remain secure no matter what. Types of Cryptocurrency
Conversely, Tron uses a system of super representatives that reach a consensus to carry out transactions. However, this system is only limited to 27 participants, focusing the point of failure on these validators alone.
To conclude, Ethereum is miles ahead in terms of security when compared to Tron. This is mainly due to mass adoption and value locked on the chain in the PoS model.
Ethereum vs Tron: Blockchain Decentralization
Decentralization is the staple of blockchain technology. Blockchains allow users to carry out transactions in a peer-to-peer manner, without any intermediaries. These transactions are then recorded in a public ledger accessible to everyone. In this regard, both of these chains act similarly.
However, thanks to its larger number of validators, Ethereum is the clear winner here. There’s very little chance for the Ethereum network to become centralized with a proof of stake model, where each holder of 32 ETH can validate transactions and participate actively in the network.
Tron only has 27 super representatives versus Ethereum’s 500,000 validators. One can quickly realize how highly centralized this is. These representatives are much more prone to centralizing the protocol and manipulating the outcome of the consensus.
And while exchanging ETH for TRX can be tedious due to the different protocols, this can be facilitated through exchanges like Godex.io.
Ethereum vs Tron: Consensus Mechanisms
As we mentioned earlier, Ethereum has used proof of work consensus in the past to verify transactions. In this model, miners compete against each other to solve a mathematical puzzle, requiring large amounts of electricity to create new blocks on the chain.
However, Ethereum merged into a proof of stake model in September 2022, making PoW a thing of the past. Currently, validators need to stake 32 ETH to be able to participate in validating blocks and receiving rewards. This model is more secure, decentralized, eco-friendly, and democratic. Additionally, the PoS model generates way fewer ETH tokens than PoW did. This increases the scarcity of Ethereum tokens, contributing to their price increase over time.
Tron uses a delegated proof of stake consensus, combined with a Practical Byzantine Fault Tolerance (PBFT) model. Here, users can delegate their TRX tokens to one of the 27 super representatives that validate transactions and blocks.
In both of these models, delegators and validators receive newly generated tokens for locking their assets on the network. This allows users to secure the network and be rewarded for their efforts.
Which to Choose?
Tron attempted to solve some of the shortcomings of PoW Ethereum when it was launched in 2017. It managed to gain a fair share of the market thanks to its fast transactions and cheap gas fees.
That said, Ethereum has evolved into a more scalable blockchain over time. With the upcoming sharding upgrades, this narrative will continue to improve, and possibly leave a lot of the competition behind.