WHAT IS BITTORRENT?
If you never used BitTorrent, Utorrent or other similar downloading-platforms, to put it in a simple way, this is how it works:
1. You can use a browser to find a special “magnet code” to download pretty much any kind of file. From images to movies, music, games and so on.
2. The magnet is then used to connect you to Peers inside the BitTorrent Network.
3. Peers are people keeping a connection between the files they previously downloaded and the BitTorrent App on their computer.
4. After that, you are able to download fragments of the file from all the Peers that are keeping the same file available.
5. Without going too much in depth with the technical parts, the bottom line is: the more people keep Peering the better everything works. For clear reasons, it is vital that people keep Peering, otherwise the network would become slower and slower until BitTorrent would cease to exist.
To help the network achieve stability, BitTorrent implemented since the beginning, a system of incentives which should supposedly keep the peers engaged.
These incentives grant any user who is peering a higher download speed depending on the upload speed.
Basically, the more a user gives to the system, the more they receive. Concretely, the best upload rate you have the best download rate you will get. This incentivizes the users to give resources to the system, typically bandwidth to upload.
This makes, in addition to the idea of trying to upload first the less available part of a file to increase its availability, a powerful incentive mechanism.
However, when a user gets the entire file and becomes a seeder, he does not have any incentives to be also a good uploader. This may be a major problem, as the presence of seeders is essential for BitTorrent to have good performance.
Ideally, tit-for-tat provides fairness: each person receives data as quickly as they contribute. In practice, high capacity users contribute much more than they receive. Today, however, the protocol is still in regular use on well over one hundred million internet-connected computing devices each month.
Previously this year, Tron acquired BitTorrent for $150,000,000.
This partnership between TRON and BitTorrent has been dubbed ‘Project Atlas.’
The vision is ambitious. The TRON network will infuse the torrent ecosystem with storage and bandwidth, increasing the number of high availability and long torrent lifetimes.
While BitTorrent has always had a built-in incentive model — users who upload faster can download more quickly — with TRON’s expertise BitTorrent will now compensate users with TRX tokens for participating and contributing. Users can, in turn, use TRX to access special features. For instance, you will have the option to get faster downloads by bidding with TRX tokens. BitTorrent peers will also be able to offer TRX as an incentive to other users to run clients on faster networks and to seed torrents for more extended periods of time.
If you are holding TRX, you will be eligible for BTT airdrops. All official wallets relaying on TRON’s network and carrying TRX will be eligible for BTT airdrops corresponding to the amount they are holding. No minimum of TRX is required to qualify for BTT airdrops. Airdrops will be automatically distributed to the TRON (TRX) holders, regardless of whether TRX is frozen. Exchanges supporting the airdrops will be announced on the BitTorrent (BTT) official website and BitTorrent’s official Twitter, Blog, and Medium account.
As previously stated, BitTorrent was recently acquired by Tron on July 2018 for $150,000,000 Even though it’s hard to give a precise evaluation we can assume that the total capitalization of BitTorrent might be around the same as the cost of purchasing the company. The important question is what will be the entity of the airdrop/token-issuing that will occur later this month. For instance, if we consider that the amount issued will account for 10% of the total capitalization, the price should reflect an M.cap of around $ 15,000,000
How one should have approached “Project Atlas”: By buying TRX on an exchange that was supporting the airdrop (Binance) Going short on an exchange that was not supporting the airdrop (Bitmex) This operativity was very profitable as nobody knew how much would be airdropped or how much of the M.cap would be issued. So a good return of investment with little to no risk. Of course, now it is late as the market already evaluated the difference between TRXh19 and TRX/BTC on Binance, topping at an astonishing 17%.
WHAT TO EXPECT NOW?
BitTorrent is planning to Airdrop approx 10% of its total supply to TRX holders in a span of approximately 7 years. Also, they hinted that they will airdrop another 10% of their supply to award TRXs long term holders. (although they also state this may change any time) We will have to wait and see what will happen after the token is issued and the Network starts using this new protocol.
Binance will also host, on Monday 28th, BitTorrent’s first “token sale”. Trough Binance Launchpad, they will be issuing 990,000,000,000 BTT. This will be the third “crowdfunding” for the Binance platform. As usual, you will be able to contribute both trough TRX and BNB (no ethereum contributions accepted this time). Shortly after the Token will start trading on the exchange.