Toncoin has captured significant attention within the blockchain community.
Originating from Telegram’s ambitious project, the TON (Telegram Open Network), it has since evolved and taken on a life of its own after Telegram’s departure.
This article takes you deep into the history, working, and potential of Toncoin, now under the TON Foundation, shedding light on its journey from being the centerpiece of a global messaging app’s vision to becoming an independent force in the decentralized digital landscape.
History of Toncoin (TON) and its relation to Telegram-backed GRAM
Introduced in 2018, the Telegram Open Network (TON) aimed to streamline crypto transactions within Telegram. However, it encountered multiple setbacks from the onset.
At the inception of the Telegram Open Network, its primary cryptocurrency was called Gram. However, trouble arose when the SEC identified Telegram’s oversight in registering a preliminary sale that amounted to $1.7 billion in Gram tokens.
This oversight prompted the SEC to urge Telegram to momentarily cease the sales of Gram, leading to Telegram’s subsequent legal defeat over the undisclosed sale. Parallel to this, the debut of the Telegram Open Network was overshadowed by a surge of cyberattacks.
Malicious entities exploited Telegram’s renowned brand, falsely offering free Gram tokens, misleading individuals into believing they were in collaboration with Telegram. In reality, there was no such Gram giveaway, and Telegram took measures to enlighten the public about the falsehood.
These complications marred not just the reputation of the original Telegram Open Network but also affected the broader image of Telegram.
By 2020, due to mounting pressures from the Securities and Exchange Commission (SEC), Telegram chose to conclude its crypto endeavors. The SEC mandated Telegram to terminate its Gram sales, correlating it to the TON blockchain, and emphasized Telegram’s lapse in registering the $1.7 billion amassed during its pre-ICO phase.
As reported by Coin Desk, following their confrontation with the SEC, Telegram committed to refunding 72% of the initial investments made in Gram to its investors. However, only 70% was eventually returned.
Ultimately, Pavel Durov, the mastermind behind Telegram, deemed it necessary to sever ties with the Telegram Open Network. Yet, the TON’s story didn’t end there.
Post Telegram’s withdrawal from the TON initiative, a dedicated team of developers took the helm, reinventing it as The Open Network and transitioning from Gram to Toncoin in 2020.
Today’s TON, as self-described, offers “lightning-quick transactions, minimal charges, user-friendly interfaces, and prioritizes sustainability.”
An Overview of Toncoin (TON) Today
As of now, Toncoin (TON) serves as the chief token for the TON network. The abbreviation “TON” signifies “The Open Network,” which describes a distributed layer-1 blockchain system. The term “layer-1” is indicative of the foundational structure or mainframe of any specific blockchain ecosystem.
TON is architected for expansiveness and reportedly has the potential to cater to “billions of users.” This extensive capacity of TON is realized through blockchain sharding — a methodology that encompasses the inclusion of multiple blockchains in one network, each designated for a distinct function, be it governance, transactional documentation, and the like. The structure of TON’s system is organized into master, shard, and work chains.
By distributing the operational load over various chains, it ensures no individual chain is overwhelmed with an excessive accumulation of unprocessed blocks. Other notable blockchain networks, such as Zilliqa, employ sharding, and Ethereum also has its sights set on assimilating this approach soon.
To authenticate transactions, the TON network embraces the proof of stake (PoS) consensus model. The PoS is a prevalent system wherein validators, often referred to as nodes, corroborate transactions through a method termed as staking. Given its superior energy efficiency, PoS emerges as a greener alternative, prompting several blockchain infrastructures to transition from the proof of work (the method employed by Bitcoin) to this more recent protocol.
TON’s foundation rests on three essential tenets that echo its overarching ethos:
- Scalability: With its underlying architecture, TON promises to accommodate an infinite number of users who can execute transactions in tandem, without causing lags or generating waiting lines.
- User-centricity: TON endeavors to humanize the blockchain experience, enabling individuals to seamlessly trade, transfer, or secure assets.
- Decentralization: By reinforcing resilience and consistency, TON champions user empowerment, symbolizing the shift towards an autonomously governed financial ecosystem.
Scope of Toncoin in decentralized communication and other use cases
The proficiency of Toncoin positions it as an ideal medium for delivering a range of financial amenities. Conventional bank account operations can span hours or even stretch into days. Although credit card transactions receive approval in moments, the actual funds transfer can linger for as long as 48 hours. In stark contrast, Toncoin aspires to offer an ultra-responsive, rapid mechanism for the custody, governance, and movement of funds.
A prominent application for TON resides in its capacity for in-app transaction assimilation. This connotes that software creators have the convenience to seamlessly embed Toncoin within their applications, granting users the flexibility to execute TON-related transactions.
In the broader spectrum, developers have the potential to incorporate TON within diverse platforms such as banking applications, social networking sites, blockchain-centric gaming initiatives, NFT trading platforms, DeFi systems, and a gamut of other applications. Moreover, conventional enterprises operating on Web2 frameworks can pivot to assimilate TON, thereby empowering users to venture into TON-driven crypto engagements.
Even though Telegram has distanced itself from the TON initiative, it remains a pivotal entity that has woven Toncoin functionalities into its fabric. A unique feature within Telegram, the Wallet Bot, offers users the leverage to configure their exclusive TON wallet.
This integration facilitates Telegram aficionados to seamlessly shift funds amongst their network by simply dispatching TON to an acquaintance. Consequently, Telegram enthusiasts globally have the luxury to expedite cross-border monetary exchanges, evading the red tape synonymous with age-old banking paradigms. Plus, with the transfer duration being virtually instantaneous, users are exempted from prolonged wait periods.
Enthusiasts also have the autonomy to migrate their TON holdings to independent crypto depositories and diversify their portfolio by trading TON for alternative digital currencies. The crypto space offers a plethora of Toncoin-specific wallets, notable mentions being Tonkeeper and TON Wallet, that serve as repositories and management tools for TON akin to other cryptocurrencies.
Beyond its fundamental use cases, Toncoin underpins several advanced blockchain platforms. For instance, Ton Storage emerges as a Toncoin-centric blockchain repository platform, championing decentralized storage utilities. On the other hand, Ton Proxy accentuates user privacy during online exploration. And the Ton Domain Name Service equips users with a streamlined domain naming apparatus tailored for dApps and infrastructures founded on Toncoin.
How does Toncoin work?
While Toncoin’s initial launch was by Telegram, the enterprise later stepped away from the project. Subsequent to this, the TON Foundation emerged, steering the development of Toncoin further.
A passionate and expansive user community surrounds Toncoin, and it plays a pivotal role in numerous applications. Being a Layer-1 blockchain, Toncoin operates independently and doesn’t rely on an external network; it possesses its fully fleshed-out blockchain system.
At its core, the Toncoin blockchain employs a distinctive architecture. It leverages blockchain sharding in the context of smart contracts to streamline transactions. This denotes that transactional data gets distributed across various segments of the blockchain, namely the master, work, and shard chains. Such distribution alleviates congestion on the primary chain, enabling swift transaction processing. This architecture’s efficiency underpins Toncoin’s exceptional scalability attributes.
On average, Toncoin processes transactions in a mere second, and in theory, the network boasts the potential to handle a staggering one million transactions each second. This impressive speed positions Toncoin amongst the top-tier, highly scalable blockchain systems.
A significant allure of Toncoin lies in its high throughput capability, which is instrumental for the widespread acceptance of its blockchain. Toncoin transactions come at a minimal cost, often just a small fraction of a US dollar, rendering the network exceptionally conducive for deploying decentralized apps (dApps).
The consensus mechanism underpinning the Toncoin blockchain is Proof-of-Stake (PoS). Over 200 validator nodes are entrusted with the task of vetting and executing transactions. These nodes maintain a stake in the form of TON coins within the network.
Any participant can venture into staking TON via a validator node and, in turn, garner rewards stemming from transaction fees. Ensuring impeccable security, the network penalizes validators by confiscating their staked TON should they validate a fraudulent transaction.
Where to Buy Toncoin?
Toncoin enjoys a significant standing in the cryptocurrency realm, holding a position amongst the top 50 projects on CoinMarketCap at the time of documentation. Yet, notable exchanges like Binance and Coinbase haven’t embraced TON trading.
Prominent exchanges offering TON trading include Huobi Global, Gate.io, KuCoin, and OKX. For those inclined towards decentralized platforms, PancakeSwap and UniSwap emerge as the primary choices that accommodate TON. Other viable alternatives, albeit less renowned, encompass platforms like HitBTC, BitMart, and Poloniex.
To secure TON via a centralized exchange, one needs to set up a user profile on the chosen platform, followed by a deposit of either fiat money or another cryptocurrency, facilitating the acquisition of TON. Many platforms also offer the convenience of instant trading, enabling users to purchase TON using credit or debit cards.
For those navigating decentralized exchanges, the procedure involves linking a crypto wallet to the DEX and then swapping an existing cryptocurrency for TON. On platforms like UniSwap, one can barter the Tether (USDT) stablecoin to obtain TON, and similarly, PancakeSwap supports the USDT/TON trading pair.
Conclusion
Toncoin has journeyed from its inception by Telegram to being championed by the TON Foundation, highlighting its resilience and adaptability. Its unique architecture promises scalability, fast transactions, and a user-centric approach, positioning it as a potential game-changer in the blockchain universe.
Furthermore, as the world of decentralized finance and applications continues to grow, the adaptability and innovations of Toncoin ensure it remains at the forefront of this evolution.
Whether you’re a developer, investor, or an everyday user, understanding Toncoin offers a glimpse into the future of decentralized applications and finance, presenting opportunities and potential that are hard to ignore.