Tron Ecosystem - Steemit Crypto Academy Season 5 - Homework Post for Task 1 by @kingkenny042
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Hey there my name is Ani Kenechukwu Joseph and I will be taking part in the introductory course for Beginners by our wonderful professor @sapwood. Join me as we talk about the topic,"Tron Ecosystem".
- Perform a STEEM and TRX transfer(micro amount) to Poloniex exchange?
- What are the different markets available for TRX and STEEM to trade in Poloniex?
- Perform a small trade in either TRX or STEEM in Poloniex?
- What is the withdrawal fee if you withdraw TRX, STEEM, and TRC20 USDT in Poloniex?
- How cost-effective is TRC20 USDT as compared to ERC20 USDT?
- Make a comparison of TRC 20 USDT withdrawal fees with other major exchanges?
Q.1. Perform a STEEM and TRX transfer(micro amount) to Poloniex exchange?
In the steemit platform rewards are received in steem and tron, therefore users have the chance to earn steem and tron simultaneously for the purpose of this transaction, I will be sending steem and tron to my Poloniex account. There are steps that we need to undergo and precautions to avoid loss of funds.
- Firstly we go to Poloniex exchange and copy the address and the memo key.
Screenshot from Poloniex Exchange
- Enter the address correctly and input the amount and fill in the spaces for account name and memo key
- Make sure to not make a mistake in the copying of the memo key cause any mistake will mean loss of funds.
Screenshot from Poloniex Exchange
- Go to Poloniex Exchange copy the address for the TRC-20 network
Screenshot from Poloniex Exchange
- Go to steemit account wallet or Tron link wallet
Screenshot from Tronlink Pro Wallet
- Click on withdraw and enter the specified amount and proceed to send.
Screenshot from Poloniex Exchange
Q.2.What are the different markets available for TRX and STEEM to trade in Poloniex?
Market pairs or Currency pairs in an exchange are coins that are paired with another coin that can be easily swapped or traded. They facilitate the rate at which the traded is performed and the paired token is credited to the account immediately. Because Bitcoin is the first and most popular cryptocurrency, it has many market pairs with many coins, but not all alt coins have pairs with bitcoin. When a trade is placed, the inital coin is sold and the other token is bought.
They are highly dependent on the price at which the tokens are bought and sold, there is a minimum amount that must be reached before you are allowed to buy or sell any token in a market pair.
For Steem and Tron are paired with other token that can be directly in the market, they may vary depending on the exchange that you are using to perform the transaction but for the Poloniex,
Screenshot from Poloniex Exchange
- BTC
- USDT
- TRX
Screenshot from Poloniex Exchange
- BTC
- USDT
- USDJ
- USDC
- JST
- ETH
- BABYDOGE
- BTT
- XRP
- NFT
- WIN
- LINK
- BNB
- KISHU
- MATIC
- NEO
- XZT
- AMP
- FUND
- SUN
- STEEM
- SXP
- SNX
- VSP
- WRX
- KLV
- SWINGBY
- DICE
- MDT
- MATTER
- SWFTC
- AVA
- CHR
- LUMI
- OSK
Q.3.Perform a small trade in either TRX or STEEM in Poloniex?
For this question, I would use Tron to perform a small transaction, Tron has many markets paired to it but for this example I will be using the STEEM/USDT.
- After successfully depositing Steem in my Poloniex account, I went ahead to click on the view market for STEEM/USDT.
Screenshot from Poloniex Exchange
- Then I proceed to use the steem to buy usdt, by clicking on the steem/usdt market and proceed to sell the Steem and receive the equivalent in Usdt.
Screenshot from Poloniex Exchange
Q.4.What is the withdrawal fee if you withdraw TRX, STEEM, and TRC20 USDT in Poloniex?
To be able to make withdrawn of steem, you must use the steem network, to perform this transaction I simply went to my Binance account and copied my account name and unique memo key, then I proceeded to my Poloniex and continued to withdraw the token.
Screenshot from Poloniex Exchange
The withdrawn fee for sending steem in the steem network is 0.01 steem which is deducted from the total amount you wish to send, after entering my password. The transaction was successfully sent to Binance.
Screenshot from Poloniex Exchange
Tron was created to be able to perform at least 2000 transactions at a very fast rate. The owner of Tron Justice Sun, said that the aim of the Tron platform is to increase the rate at which transactions are performed at a very low transaction fee.
Screenshot from Poloniex Exchange
To be able to send Tron out of the Poloniex exchange, I went ahead to use the TRC 20 network which required a charge of 0.01 Trx. I simply went to my Binance and copied my TRC20 address and proceeded to enter my password and successfully sent the token out of Poloniex exchange.
Screenshot from Poloniex Exchange
Screenshot from Poloniex Exchange
Using the TRC-20 network I made transaction to withdraw USDT to my Binance, while doing this transaction with Poloniex I was charged 0 USDT for the transaction fee. I simply copied my TRC-20 address from Binance and went ahead to withdraw from my Poloniex. The TRC-20 network is said to be the cheapest network because it is based on the Tron ecosystem.
Screenshot from Poloniex Exchange
Q.5.How cost-effective is TRC20 USDT as compared to ERC20 USDT
TRC-20 Network is an application of smart contracts using the tron blockchain. The fees levels are dependent on bandwidth and energy X Fixed Price = Fee
A bandwidth is a network used to carry out and store transactions while energy is the amount of power needed to carry out that transaction. In the TRC20 network, they don't need a lot of energy for the transaction to be processed, which is why the fees are reduced compared to ERC20 and done at a very fast rate. The transactions just require 1 network configuration.
ERC20 networks are basically smart contracts run on the Ethereum blockchain. Here the fees are also dependent on bandwidth and energy but the energy required is high as compared to the TRC-20 network. The transaction would have to go through 12 network configurations. Thereby increasing the cost of doing a transaction in this network, because of the network configuration must through 12 networks this increases the fees attached to making a transaction.
Eg; While using the Poloniex exchange to send Usdt in TRC-20 we paid 0 Usdt.
Screenshot from Poloniex Exchange
But while using ERC20 we were required to pay a fee of 42 Usdt to send just 4 Usdt.
Screenshot from Poloniex Exchange
Q.6.Make a comparison of TRC 20 USDT withdrawal fees with other major exchanges?
When using Poloniex exchange to send Usdt, there was no fee attached to it. Poloniex allows users to send Usdt with no cost attached to it. The TRC-20 network is run on a low energy and needs only one network configuration when compared to ERC20. They are fast and cost effective.
However I also tried sending Usdt using my Binance account and found out that Binance charges 1 Usdt to be able to perform the transaction using the TRC network. This shows that Poloniex exchange is more cost effective when it comes to send out Usdt using TRC-20.
Conclusion
I would like to thank our wonderful professor @sapwood for this wonderful course and for teaching me the difference between the ERC20 and TRC20 network and which one is more cost effective. I also learnt the difference between Tron and Steem that enables a quick swap of the two tokens when one is sold and the other is bought. I am grateful for participating in this course and I hope to learn more from Steemit Crypto Academy. Thank you and God bless.