Author: Isabelle Yeo
here have been discussions of TRON’s acquisition of BitTorrent (BT) in the cryptocurrency field.
TechCrunch disclosed the $140 million price. Besides that, there seems to be no other information available. Amazed at Justin Sun’s big move, people are particularly interested in what the future holds for both BT and TRON.
BT is a company that took the lead in using P2P to significantly improve download speed. They have taken up a high amount of internet traffic. TRON, on the other hand, also aims at operating in a decentralized manner as a blockchain platform, but is in need of users at the moment. TRON’s acquisition of BT helps with the realization of this specific milestone.
It’s fair to say that the acquisition of BT is well in line with TRON’s strategies.
TRON’s Ambition: Gain Billions of Users
TRON is essentially a blockchain technology company which aims at building the infrastructure for a decentralized Internet. Currently, the TRON Protocol is one of the largest blockchain-based operating systems in the world. It offers scalable, high-availability, and high-throughput support that serves as the foundation for all decentralized applications that run on the protocol.
Even though TRON’s target users are businesses, as an underlying technology, it still would like to reach common consumers, in order to further influence developers of the business side.
It’s somewhat similar to the iOS system of Apple. Even though Apple’s end users are Apple fans, if it weren’t for the iOS App developers gathered in the iOS system who substantiate the apps, Apple won’t have such great influence in the hardware field and the consumer market. The failure of Window Phone is a good example for this pattern. When developers of the business side see so many fans, they will be motivated to develop more apps and expend the whole Apple ecosystem.
Therefore, for TRON, B2B2C is the best way to operate its underlying infrastructure. However, in order to become the “iOS system of blockchain”, it needs a broader user base.
In fact, TRON has been putting in work all this time. On January 27 this year, TRON announced its strategic partnership with Global Social Chain (GSC), a new generation of social chain based on millions of social media users. The latter’s user base size was in the interest of TRON.
Currently, TRON users are mostly Justin Sun’s fans. The acquisition is an easy way to expand TRON’s user base other than partnership. This is exactly what BT offers.
BT, namely the BitTorrent Protocol, is a P2P file-sharing protocol. With BT, whoever downloads files also uploads them. As long as they don’t delete the file immediately after the download, part of the file will be stored locally in their computer. When a new user wants to download the file, he doesn’t need to acquire the file fully from the central server; instead, he can download it from the client of BT users. Therefore, the downloading speed will increase as there are more people who download the file, which significantly increases the efficiency of file distribution.
Otakus are certainly familiar to this — they are used to using BT to download movies, music and teachers’ works.
According to BT, they have about 170 million users of their products, including their main clients and BitTorrent Now. The latter focuses on videos, music and other creative content. BT claims that under normal circumstances, they support up to 40% of the world’s Internet traffic per day.
It’s expected that TRON’s acquisition of BT will bring about millions of users for the company. An expended user base will motivate the implementation of its projects.
The Rebirth of BT: Leading Technology+ A Brand New Business Model
Although BT plays a leading role in technology, it’s been having a hard time achieving a major breakthrough due to its business model. Also, some have claimed that BT technology contributes to piracy, even though BT is just a protocol and doesn’t break any laws. Yet such claims affected BT’s brand and even its profit model.
Now, the acquisition will steer BT to a brand new path to success.
Technology-wise, BT protocol is established on P2P technology, which means that the document is stored in many anonymous peers who participated in the process voluntarily. The file can be acquired from all these peers, which is similar to blockchain technology. However, the peers don’t receive any rewards for using their hard drives, bandwidth, and CPU. Namely, participating in this downloading process does not generate any revenue.
TRON’s blockchain-based distributed storage is similar to the P2P document sharing technology. The only difference is that for blockchain records transactions, all the participating peers collaborate with each other to verify transactions and safeguard the data. In addition, TRON uses its cryptocurrency TRX to encourage more developers to join the network and bring profit to the users at the same time. By doing so, TRON is able to establish a community for all of its users.
Application wise, with the help of BT, TRON is able to take its technology to the next level and enhance user loyalty, turning its users into supporters and eventually believers of TRON.
In addition, TRON public chain is equipped with fast TPS (more than tens of thousands). A fast TPS will allow TRON blockchain to support more application scenarios and therefore encourage more users to join the network using strong incentives.
For B-end developers, they are able to meet the requirements of high concurrency, low latency, and massive data transmission for online decentralized entertainment application. With the help of TRON, BT can also provide the optimal decentralized experience for its internet users.
TRON establishes infrastructure for decentralized internet while BT has a decentralized protocol to help its massive user base share and download content. TRON’s acquisition of BT is no doubt a milestone on its way to bigger success, and the consolidation of two companies will also become a classic in the history of company acquisitions.
Photo Credits: BitTorrent Blog