Toncoin
Contents
As the market of digital currencies continues to expand and diversify, newer additions are making their mark with innovative solutions and features. One cryptocurrency making waves is Toncoin (TON), a decentralized cryptocurrency that offers groundbreaking features and potential benefits for its users. In his article, we will explore Toncoin, its features, benefits, and possible future.
Understanding Toncoin (TON)
Toncoin (TON), a brainchild of the Telegram Open Network, is a decentralized cryptocurrency designed to offer fast, secure, and scalable transactions. TON aims to build a cross-device user base by integrating seamlessly with the popular messaging app Telegram, serving millions of active users worldwide. The cryptocurrency leverages encryption to secure transactions, and is marketed as a reliable choice for investors and users who value transactional safety and privacy.
Toncoin, previously known as Gram, is the principal cryptocurrency of The Open Network (TON) Blockchain. In addition to being used for settling payments, transaction fees, and smart-contract message processing fees, it is also necessary for securing the blockchain through staking and deciding how the network develops.
Basic facts about Toncoin and The Open Network
The Open Network was previously known as Telegram Open Network. It was developed by Nikolai Durov, Pavel Durov and Telegram, but Telegram stepped back in 2020 due to legal issues. TON survived, and was embraced by a global community of independent contributors.
Developers: TON Foundation, Telegram (not since 2020)
Written in: C++
Repository: github.com/ton-blockchain
License: GNU LGPL v2
Website: ton.org
Key Features of the Toncoin
1. Integration with Telegram: Toncoin is the first cryptocurrency specifically designed to integrate with a popular messaging platform. Toncoin´s integration with Telegram enabling seamless transactions within the Telegram ecosystem and provides the coin with a ready base of millions of potential users.
2. Speed and Scalability: The network for TON is designed for processing millions of transactions per second, making it one of the fastest networks in the cryptocurrency market. Its speed and scalability make it suitable for a wide range of applications.
- Security and Privacy: Advanced encryption techniques are utilized to maintain user privacy and secure transactions. The Telegram Open Network collaborates with various Security Assurance Providers (SAP), including Vidma, Certik, Scalebit, andQuantstamp, who carry out software testing for the TON ecosystem.
- Governance: The governance is decentralized and network modifications are contingent upon approval from the majority of validators. The proof-of-stake consensus mechanism is utilized.
5. Accessibility and Ease of Use: With the TON Wallet integrated into the Telegram app, users can transact with Toncoin easily and conveniently. This accessibility can make TON more user-friendly than many other cryptocurrencies.
The Open Network – Understanding the Background
In 2017, Telegram Messenger began investigating potential blockchain solutions for Telegram and Telegram users. They could not find any existing Layer 1 blockchain that could support Telegram’s huge userbase, and therefore decided to have a special Layer 1 blockchain designed for their needs- the Telegram Open Network.
In order to fund the project, e.g. pay for servers, the selling of a token called Gram commenced in early 2018. (Gram eventually became Toncoin.) Venture capital financing was considered, but ultimately rejected.
A testnet was launched in January 2019, followed by a lite version of the TON blockchain network client in May. The source code for TON nodes was released as open source on GitHub in September that year.
Due to legal issues, Telegram stepped back from the TON project in 2020. A small team of open-source experts went through TON´s codebase and resumed active blockchain development, following the principles of the original TON whitepaper.
TON blockchain
The fundamental infrastructure for The Open Network is a scalable multi-blockchain platform that supports the creation and operation of decentralized applications (dApps) and smart contracts.
The consensus mechanism is Proof-of-Stake. In theory, the network can support a maximum of 2^92 accompanying blockchains. The Proof-of-Stake mechanism is an advanced solution, where validator nodes use deposit stakes to vouch for the reliability. Consensus is reached through a special variant of the Byzantine fault tolerance protocol. This is a not a very resource-consuming method and it permits the network to utilize more of each node´s computing power to actually process transactions and execute the smart contracts.
The design behind TON puts a lot of emphasis on leveraging sharding to attain scalability, avoiding network congestion and keeping operational costs down regardless of demand volumes. The blockchains can split and merge automatically, and this helps them adapt to varying loads. The speed of block generation is not hampered by transaction volume.
Within the network, hypercube routing mechanisms are in place to promote an efficient exchange of data between any two blockchain, regardless of network size. There is a logarithmic relationship between how much time it takes to exchange data and the number of blockchains. Therefore, the network can scale to millions of chains without becoming slow.
The network has one masterchain + a maximum of 2^32 workchains. All workchains function conhesively within the ecosystem, but each individual workchain has its own ruleset, which governs aspects such as transaction protocols and account address formats.
Toncoin’s Potential Benefits
Toncoin offers several potential benefits to its users, including:
1. Lower Transaction Costs: Thanks to its scalability and speed, Toncoin can potentially offer lower transaction costs compared to many other cryptocurrencies.
2. Ease of Use: With its integration into the Telegram app, TON is easily accessible and convenient for users.
3. Secure Transactions: Advanced encryption techniques are employed to make Toncoin a more secure option for transactions.
TON Payments
TON Payments is a digital solution for instant off-chain value transfers between users, bots, and other services. The transfers are marketed as being just as secure as on-chain transactions. TON Payments have been available since June 30, 2022.
Legal Issues
A few weeks prior to the planned TON launch in 2019, the U.S. Securities and Exchange Commission (SEC) obtained a temporary restrictive order against the distribution of Grams. According to SEC, initial Gram buyers would in essence be underwriters, and the resale of Grams would legally be an unregistered distribution of securities.
Judge P. Kevin Castel of the U.S. District Court for the Southern District of New York largely agreed with SEC. On May 12, 2020, Pavel Durov announced that Telegram would no longer be actively involved with TON. The following month, Telegram settled with SEC and agreed to return $1.2 billion USD in Gram purchase agreements, and pay a pentaly to SEC. Telegram repaid 770 million USD to investors and converted 443 million USD into a one-year debt with interest.
Future Perspectives of Toncoin
Toncoin is a noteworthy entrant in the ever-expanding cryptocurrency universe. Its unique integration with Telegram, fast transactional speed, and security features make it stand apart from the crowd.
With its unique features and potential benefits, Toncoin is poised for significant growth. Its speed and scalability make it attractive for a wide range of applications, while its integration with Telegram provides a ready user base. Toncoin’s emphasis on security and privacy is also likely to appeal to users who value these aspects.
Despite the promising prospects, Toncoin, like any cryptocurrency, carries risks associated with market volatility and regulatory uncertainty. Therefore, potential investors and users should do their due diligence and consider these risks before engaging with Toncoin.