Ethereum is facing its biggest threat yet. Its name, Tron. Originally developed on ERC20, Tron is set to move to its native platform by mid-June. Observers believe this transition could propel Tron up the charts and make it one of the biggest Altcoins.
Tron ERC20 Migration
A point of concern for the Ethereum network is that it is set to lose a good number of users from Tron migrating from ERC20 with the mainnet launch. Tron accounts for a considerable amount of traffic to the Ethereum platform given the vast number of people using its decentralized apps.
Tron plans to migrate all of its dApps currently hosted by ERC20 to the new platform. Over 100 million users use the apps, most of whom are expected to move along with the migration. Things could get even messier as Tron founder, Justin Sun, is already touting Ethereum shortcomings as one of the reasons behind the proposed migration to a native platform.
“From today to the last day, we are no longer the ERC20 token and in the future, we will compete with Ethereum as a dApp platform. We will compete face-to-face with Ethereum, and we have confidence we will build a large ecosystem; a much larger ecosystem than the Ethereum,” said Mr. Sun.
Tron vs. Ethereum
Tron claims to have addressed all Ethereum’s shortcomings, from security to transaction fee scalability and network speed with the new platform. Should If Tron can come through in offering a better platform than Ethereum, which has continued to call the shots in the space, it could add more reason for users to migrate.
Ethereum Founder Vitalik Buterin has already downplayed the threat posed by Tron, reiterating it still has a long way to go.
Tron, on the other hand, has confirmed an airdrop of 30 million TRX tokens to be used for the Ethereum community as a thank you for the support during the ERC20 phase. People holding over 1 ETH as of January 1st, 2018 are to receive a random amount of TRX between 10 to 100 tokens. The reward is being used to entice Ethereum users to switch over to the Tron Network.
Tron faces an uphill task to dethrone Ethereum which boasts a market cap of over $60 billion. Given that its market cap currently stands at around $3 billion, there is no doubt it poses the biggest threat to Ethereum dominance especially on users being given alternatives to choose from.