TRON CEO Justin Sun Explains Why BitTorrent Speed Is Powered by BTT and Not TRX

Siamak Masnavi

Recently, TRON Founder and CEO Justin Sun spoke about BitTorrent and the BTT token, and among the questions he answered was why BitTorrent Speed is powered by BTT and not TRX.

On February 25th, Binance announced via Twitter that it would be organizing in the "Binance English" Telegram group an "Ask Me Anything" (AMA) session on February 27th hosted by Justin Sun so that he could answer questions about TRON, BitTorrent, TRX, and BTT. This was the tweet it sent out:

Justin was "named 2017 Forbes 30 under 30 Asia and Forbes 30 under 30 China from 2015 to 2017," and is "the only millennial graduate from Hupan University established by Jack Ma, Chairman of the Alibaba Group." 

TRON acquired BitTorrent on 24 July 2018, and launched the BTT token on Binance Launchpad on January 28th, i.e. one month before this AMA session. In the few weeks that have gone by since the public sale of BTT tokens took place, TRON has rewarded TRX holders with BTT in one of the largest ever airdrops, as well as managed to get BTT listed "on major exchanges and wallets to make BTT available to most people."

Justin started by explaining that he was not worried about the long term popularity of BitTorrent and BTT:

"BitTorrent has a great user base with close to 100 million active users around the world, and this number has not changed much or dropped in the past 16 years from 2003 until now... Therefore, I am not worried about its popularity. BTT is very different from some overly hyped projects on the Internet which were just a flash in the pan.”

Next, he explained why BTT will be airdropped to TRX holders during the next six years:

“This is a program to give our users early access to our product, and to encourage them to stick with us for the long term. We are not only airdropping to TRX holders, but also giving the BTT token to BitTorrent users through the clients. We expect over 100M active users will get to know about cryptocurrency and the first one they will experience will be BTT."

Justin believes that BitTorrent's 100 million users, who will be receiving BTT tokens via BitTorrent clients, are an ideal target audience to introduce to cryptocurrency, and that they could with mass adoption, which in turn could help us to get to a bull market once again:

“We will provide BTT as an early access mechanism to the 100 million active users and most of them are not cryptocurrency users. However, the 100 million users are the targeted users, and they share a lot of similarities with crypto users. Firstly, they are interested in decentralized technologies and are using peer-to-peer technology. Secondly, the majority of BitTorrent users are males between 25 and 35 years old, which is also a group very interested in cryptocurrency. Therefore, when the 100 million users receive BTT airdrops, they will start to wonder what BTT is, and what cryptocurrency is, and start to investigate.”

Perhaps, the most interesting question that Justin was asked was why BitTorrent Speed was powered by BTT and not TRX, something that many TRX fans have wondered about:

“The BitTorrent user base is huge (~100M MAU), so we can’t provide enough TRX to them bootstrap the economy without diluting the value of TRX. TRX is used as a utility token within the TRON blockchain (for powering smart contracts, electing SRs, etc.) BTT is a utility token used to mediate the exchange of resources (bandwidth, storage, etc.) between users’ systems. Since BTT is a TRC-10 token, TRX and BTT are like a razor and a blade. It’s really important for me to give access to BTT to the TRON community and reward the TRX holders so we decided to create a 6 years long program to airdrop 10% of the total circulating supply which is pretty unique within the crypto space. The more successful BTT is, the more successful TRX will be.”

And finally, another very interesting question that Justin was asked was whether he could see millennials becoming big adopters of crypto in general and TRON in particular in the next few years:

“I think millennials will become one of the largest crypto communities. Crypto is the native currency of the internet. Millennials grew up with the internet, so they have been exposed to technology and the internet from the cradle. Older generations are still becoming comfortable with the internet and are used to fiat currency. Eventually, millennials and later generations will start to think of fiat currency as strange and cryptocurrency as normal. TRON is focused on entertainment, which is a very important category for millennials and for mass adoption generally, and we are also focused on user experience and ease of use, to make things accessible for a mass audience.”

 

Featured Image Courtesy of TRON Foundation

Blockchain-Enabled Chinese Yuan Could Increase Governmental Oversight, Investor Argues

The Chinese government has been closely studying blockchain technology in order to determine whether the immutable distributed ledger can be used to streamline routine business processes.

However, Chinese authorities have expressed concerns regarding the use of cryptocurrencies in financing illicit activities and potentially disrupting the country’s $12 trillion economy by facilitating capital flight.

People’s Bank of China Considering Blockchain-Based Yuan

While China’s government has attempted to restrict transactions involving cryptocurrencies, the People’s Bank of China (PBoC) has reportedly been conducting research to determine the feasibility of launching a blockchain-based Chinese yuan (CNY) since 2014.

This, according to Dovey Wan, a founding partner at Primitive Ventures, a “market cycle agnostic” investment firm which has invested undisclosed amounts into various cryptoasset projects such as ZCash (ZEC) and DFINITY.

Wan, who earned her Masters in Information Systems from Carnegie Mellon University, wrote in a blog post published on CoinDesk on May 17, 2019 that the digital yuan, or Renminbi (RMB), initiative may potentially allow the Chinese government to exercise greater control over the nation’s local and international economy.

M0 Versus M2

As explained by Wan, digital fiat currencies allow financial institutions to more effectively create credit flows which increase M2, the broad money supply. Meanwhile, blockchain-based digital currencies impact a base currency measure, referred to as M0.

Blockchain-enabled digital currencies could potentially allow central banks to “bypass commercial banks” in order to directly control money creation and supply channels. This would structurally centralize the central financial institution’s power and role in formulating monetary policy, Wan argued.

Chinese Government Will Most Likely Use Permissioned Network

According to Wan, the PBoC is looking at various types of network design for a digital, blockchain-powered RMB. She believes that it will most likely be a permissioned network in which the nodes will be managed by major Chinese financial institutions, including the PBoC.

This indicates that transactions involving a digital yuan would only be seen by Chinese banks, and not the nation’s citizens.

Blockchain-Powered Currencies Enable “Better Coordination Paradigm”

One of the main reasons for using blockchain technology, Wan noted, is to take advantage of “a better coordination paradigm” when compared to “traditional currency supply management, which is heavily dependent on bookkeeping,” Wan wrote.

Moreover, Wan thinks blockchain’s immutable nature and private-key cryptography can prohibit users from entering fraudulent transactions and also prevent users from counterfeiting currency notes.

A blockchain-based yuan could also assist the Chinese government in more carefully monitoring the spending history of the nation's residents. This would allow the government to "accurately assess creditworthiness" and detect illegal activities such as money laundering and tax evasion, Wan noted.