KEYTAKEAWAYS
- Speed and Scalability: TON can process millions of transactions per second and accommodate hundreds of millions of users.
- Integration with Telegram: Seamlessly integrates with Telegram, enabling easy crypto transfers directly in chat.
- Ecosystem Development: A growing ecosystem with innovative features like storage, proxies, smart contracts, and decentralized DNS.
CONTENT
Toncoin (TON) is the native cryptocurrency of The Open Network. It uses the Proof-of-Stake consensus to facilitate transactions, payments, and decentralized services like storage and fast payments.
WHAT IS TONCOIN (TON)
Toncoin (TON) is the native cryptocurrency of The Open Network , a decentralized L1 blockchain network. It is used for transaction fees, payment settlements, and validating transactions via the Proof-of-Stake (PoS) consensus model on the TON blockchain.
Toncoin originated from Gram, a cryptocurrency launched by Telegram, the popular messaging platform with over 500 million active users. In 2018, Telegram raised $1.7 billion in two private sales of Gram, intending to launch the Telegram Open Network (later renamed The Open Network, or TON, in 2021).
However, due to legal issues, the U.S. Securities and Exchange Commission (SEC) alleged that Gram was involved in illegal securities issuance and took Telegram to court. Ultimately, this forced Telegram to abandon its plans for Gram, and in May 2020, Telegram’s founder Pavel Durov publicly announced the end of the TON blockchain project.
Today’s Toncoin is independently developed and maintained by the TON Foundation, which was established by the Telegram community and is not affiliated with Telegram itself. Toncoin aims to facilitate decentralized services such as storage, anonymous networks, DNS, and fast payments through its PoS system. With Telegram’s massive user base, it aims to make cryptocurrency payments mainstream. This goal has received support and promotion from Telegram’s founder.
The vision of Toncoin is to become the most user-friendly payment method, allowing users to send cryptocurrency directly within chats. Compared to other public chains, it offers a more intuitive and accessible user experience.
ADVANTAGES OF TONCOIN (TON)
Toncoin is currently traded on multiple exchanges and can be stored in Telegram wallets. Toncoin has the following advantages:
1. Speed and Scalability: It allows processing millions of transactions per second and can accommodate hundreds of millions of active users and millions of applications. In the current architecture, Bitcoin can handle up to 7 transactions per second, while Ethereum can handle up to 15, leading to speed limitations and increased transaction costs.
2. Intuitive User Interface: It enables regular users to easily buy, store, and transfer value and use decentralized applications naturally. The Telegram team will leverage their 10 years of experience building user-friendly interfaces for hundreds of millions of users to create lightweight wallets, exchange, and identity services that allow users to use cryptocurrency intuitively.
3. Huge User Base: The existing large user base provides a network effect crucial for ecosystem growth, ultimately enabling adoption by hundreds of millions of users. With hundreds of millions of existing Telegram users, promoting Toncoin is not a difficult task.
4. Proof-of-Stake (PoS) Consensus: The PoS model ensures efficient transaction validation, reduces environmental impact compared to Proof-of-Work (PoW) models, and provides incentives for validators.
5. Decentralized Security: With The Open Network’s decentralized architecture, Toncoin offers high levels of security, transparency, and resistance to censorship.
FEATURES OF TONCOIN (TON) AND HOW IT DIFFERS FROM ETH
Ton has a unique and efficient architecture. With its combination of a masterchain, workchains, and hundreds of shards, it can quickly process millions of transactions. The masterchain stores basic information, while workchains record transactions and smart contract activities. Each workchain can be divided into up to 260 shards, effectively reducing network load.
Ton supports dynamic sharding and can verify and process millions of transactions per second through workchains, offering exceptional scalability. Its PoS mechanism provides an efficient way to handle transaction fees and settlements, while Toncoin, the key token, has an annual inflation rate of approximately 0.6%.
Ton aims to deliver blockchain services that are as simple and fast as everyday apps, attracting more users and projects. With transaction speeds of up to millions per second, it is set to become one of the fastest blockchains on the market.
>>> More to read: What Is Ethereum?
TON ECOSYSTEM
The TON ecosystem is recognized for its practicality and emphasis on efficiency, aiming to offer utility to end-users as easily as possible. The TON developer community focuses on incorporating advanced features that distinguish it from competitors.
- TON Storage: This feature takes decentralized data storage a step further. It works like Dropbox, encrypting data using private keys to add an extra layer of security to private and public online storage.
- TON Proxy: Privacy is crucial for users. With TON Proxy, users can connect to the TON network like they would to TOR or I2P, avoiding censorship and accessing dApps seamlessly.
- TON Smart Contracts: TON, like other blockchain ecosystems, uses smart contracts to facilitate on-chain transactions. All smart contracts are executed through the TON Virtual Machine (TVM), capable of deploying highly complex contracts.
- TON DNS: The TON Domain Name Service (DNS) improves the usability of crypto wallets, accounts, smart contracts, and websites like TON Validators, TON Apps, and TON Bridge. It provides user-friendly names instead of long strings of characters. Users can register domain names and usernames using the blockchain, and some applications, including crypto wallets, support TON DNS.
- TON Apps and Services: The TON blockchain hosts multiple dApps and services using smart contracts. TON Services allow developers to create new blockchain applications, which can be accessed via a user-friendly interface. There is also a searchable registry of all dApps and services on the blockchain.
- StickerFace: StickerFace lets users create NFT avatars for use in various TON games and applications. The team is working to add animation and 3D effects and offers a range of wearable accessories for avatars.
- TON Diamonds: This decentralized marketplace allows users to easily purchase digital art from artists as NFTs.
- TON CATS and TON Hamsters: These are notable NFT art projects on the TON blockchain.
- TON Wallets: TON offers two types of custodial wallets. Wallet is recommended for transactions via Telegram, while Cryptobot simplifies storing, transferring, and exchanging Toncoin.
TONCOIN (TON) FUTURE
Bitcoin currently has about 1 billion addresses, Ethereum has around 170 million, while TON only has about 2 million, highlighting its vast potential. With 700 million users, Telegram is a gold mine for the TON ecosystem. Unlike other blockchain projects that rely on marketing to attract users, TON was designed to serve Telegram from the outset. Despite challenges, these 700 million users will inevitably encounter the TON ecosystem.
While new blockchain projects face adoption challenges due to technical complexity and high entry barriers, TON integrates seamlessly with Telegram. Users can already send TON and BTC directly to friends in chat rooms, just like Line Pay or WeChat Pay. This simplicity is crucial for widespread adoption. In developing countries, especially parts of Africa and South America, fewer than 30% have bank accounts, but twice as many have access to mobile devices. This makes these regions ideal for large-scale adoption of cryptocurrencies, unlike heavily regulated developed nations.
TON has strong community support and will continue to grow in the coming years. Toncoin could become a practical way to transfer value globally. Active wallets grew from 200,000 in January 2022 to over 700,000 by October, reaching nearly 1.1 million today, indicating that widespread adoption may soon be a reality.
FAQ
- What is TONCOIN (TON)?
Toncoin is developed by the independent TON Foundation within the Telegram community. It aims to offer decentralized services through Proof-of-Stake and leverage Telegram’s user base to popularize cryptocurrency payments.
- What are TONCOIN (TON) advantages?
- Speed and Scalability
- Intuitive User Interface
- Huge User Base
- Proof-of-Stake (PoS) Consensus
- Decentralized Security
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