To accomplish that goal, Tron borrows some of its technology from Ethereum. Similar to the popular cryptocurrency ethereum, Tron uses a virtual machine known as the “Tron Virtual Machine,” or TVM. A virtual machine is a program that allows network contributors (called nodes) to execute Tron-based smart contracts. Smart contracts are self-executing computer codes that perform certain functions when predefined conditions are met. For example, if Bob sends 1 ETH to a certain wallet, a smart contract triggers and sends him a loan for 2 ETH.