Peer to peer networking platform BitTorrent is reportedly being sold to Blockchain startup Tron in a deal reportedly valued at $140 million.
Justin Sun, the CEO of Tron who also previously worked at Ripple Labs plans to use the Tron acquisition as an opportunity to expand its presence beyond the entertainment industry through blockchain technology. Tron which also runs the Tron (TRX) cryptocurrency wants to use the acquisition as an opportunity to work towards achieving a truly decentralized internet.
Tron’s acquisition of BitTorrent is quite strategic especially since the firm has been around for a significant number of years. BitTorrent therefore has a lot of knowledge of the technology that is required for peer-to-peer and decentralized networking and it achieves all that using protocols and software. It also has some influence in the entertainment industry through BitTorrent Now. The company has been working on helping independent musicians and artists to market their content through the same technology that is used to pirate movies and TV shows.
Previous reports about the acquisition did not disclose the price of the deal but a TechCrunch recently revealed that it will BitTorrent will be sold to Tron for $140 million. The peer-to-peer networking platform has roughly 170 million users on its platform. Meanwhile, Tron is a relatively new company although it is rapidly becoming a formidable force in the blockchain arena. The acquisition brings it closer to achieving its goal of a decentralized internet.
BitTorrent’s future is in blockchain technology
The deal has been viewed as a positive step forward for BitTorrent especially considering that the firm has not raised money IN 2018 despite generating revenue. Now that it is part of Tron, the peer-to-peer networking company is expected to play a pivotal role in the blockchain industry which is still developing at a fast pace.
TechCrunch claims that Tron’s decision to acquire BitTorrent might be part of the plan to protect its technology against plagiarism accusations after creating a potential mining platform for digital currencies. However, BitTorrent has also been looking for a buyer for quite some time, but it had not been receiving many offers. However, there were numerous other blockchain parties that had expressed interest.