BitTorrent is being sold for $140mn to blockchain start-up Tron
What's the story
BitTorrent, one of the most recognizable brands in the world, is reportedly being bought by blockchain-based start-up Tron for a whopping $140mn, according to TechCrunch. BitTorrent had been looking for a buyer for a while now, and rumors that BitTorrent and Tron were in the midst of negotiations had been in the air over the last month. Here's more.
BitTorrent
BitTorrent isn't all about torrenting technology
While most are familiar with BitTorrent for torrenting technology, the company has several other products. With over 170 million users, BitTorrent has long fought its bad rap for illegal file sharing, and has a foothold in the entertainment industry via BitTorrent Now, a platform for promoting independent artists. BitTorrent also claims that its protocols move around 40% of internet traffic in a typical day.
Tron
And, what exactly does Tron do?
Unlike BitTorrent, however, Tron is a new kid on the block. Founded by Justin Sun, formerly of Ripple (a blockchain-based settlement system), Tron is a blockchain start-up with an objective to build "a truly decentralized Internet and its infrastructure". Tron also has its own cryptocurrency called TRX, and the market cap for all TRX is currently valued at under $4.6bn.
Significance
Tron's acquisition of BitTorrent seems to make sense
Given Tron's mission, its acquisition of BitTorrent makes complete sense. BitTorrent was a pioneer in figuring out how a decentralized network architecture, which uses all computers on the network as nodes, could be used to store, share, and backup data. In contrast to a decentralized architecture, the tech world today is dominated by centralized server-based architecture - something Tron is trying to change.
Future plans
It's not clear what's in store for BitTorrent now
It's not clear what plans Tron has for BitTorrent, as neither company responded to TechCrunch's requests for a comment. However, the tech magazine reported that a shareholder said that BitTorrent would be used to "legitimize" Tron's business (which had faced flak over alleged technological plagiarism from Ethereum and FileCoin). BitTorrent, with its peer-to-peer technology, could also be used as a cryptocurrency mining network.