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Token of the Week: BitTorrent Coin

BitTorrent was launched in the early 2000s as a peer-to-peer network for sharing files online. It transformed the way people shared files by running software that reduces reliance on a single server. However, after years of struggling to monetize the platform, the Tron Foundation acquired the file-sharing platform.

The acquisition of the file-sharing platform in 2019 gave rise to a native cryptocurrency, dubbed BitTorrent Coin. The token came about as Tron blockchain creators sought to incentivize participants sharing files on the forum.

The BTT token was introduced through a way of Initial Coin Offering in 2019. During the offering, 6% of the total BTT token were issued to the public raising $7.2 million in the process. At inception, several Tokens were also allocated to the Tron Foundation, BitTorrent foundation, and the BitTorrent ecosystem.

Background

BitTorrent Coin is the native token powering the Tron blockchain. At the core is the BitTorrent platform, which connects parties providing files and those, looking to access files. Transactions on the platform start with a user asking for files from providers who host them on their computers.

Providers split the files into several pieces. Those who wish to download the files can do so from multiple providers. The BitTorrent Coin comes into play as a compensation mechanism through which providers are compensated for sharing files. The token also makes the network distributed, allowing users to access the files from different providers, reducing server and network impact.

A user can pay a provider BTT tokens to receive the said files or local resources such as bandwidth or storage for remote backup.

The Tron blockchain maintains a record of all BTT tokens transacted on the network as BitTorrent software facilitates file transactions.

Use cases

BitTorrent Coin plays a key role in bridging the gap between content creators and their audience. Content creators and the audience can use the token to give value to their contributed computing resources.

Additionally, the token is bought and spent by those who request files on the BitTorrent platform. Likewise, anyone who wishes to increase their download speed on the network can do so by spending some native cryptocurrencies. Additionally, providers who share files with the audiences are incentivized or compensated through BTT token payments.

BTT Tokenenomics

BTT Token accrues its value as the native token powering the Tron blockchain. It serves as a payment option for people looking to access features of the BitTorrent network. Its value has continued to increase as it is the only form of payment for requesters looking to enter agreements with providers to access files.

BTT token has also continued to increase in value as it offers an appealing way of sharing files in a free and efficient manner. It also continues to elicit strong demand from developers looking to launch new file-sharing applications to benefit from established audiences.

Recent Developments

The Bit Torrent platform has been undergoing substantial changes to its business model by signing a number of deals with major movie studios and TV film rights companies. With roughly 100 million users across the world, the team believes the Bit Torrent platform could one day challenge the Ethereum network for decentralized content apps.  

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