Toncoin has garnered significant attention within the blockchain community since its inception as part of Telegram’s ambitious project, the Telegram Open Network (TON). Although Telegram has since departed from the project, Toncoin has evolved into an independent force in the decentralized digital landscape under the TON Foundation. This article provides an in-depth look at the history, workings, and potential of Toncoin.
The Telegram Open Network (TON) was introduced in 2018 with the goal of streamlining crypto transactions within Telegram. However, it faced several setbacks from the start. One of the major issues arose when the Securities and Exchange Commission (SEC) identified Telegram’s failure to register a preliminary sale of $1.7 billion worth of Gram tokens. As a result, the SEC urged Telegram to halt the sales of Gram, leading to a legal defeat for Telegram. Additionally, the launch of the Telegram Open Network was marred by cyberattacks, where malicious entities falsely claimed to offer free Gram tokens in collaboration with Telegram.
These complications not only tarnished the reputation of the Telegram Open Network but also had a broader impact on Telegram itself. In 2020, due to pressure from the SEC, Telegram decided to terminate its crypto endeavors. The SEC mandated Telegram to cease its Gram sales and refund 72% of the initial investments made in Gram to investors. However, only 70% of the investments were eventually returned. As a result, Telegram’s founder Pavel Durov decided to sever ties with the Telegram Open Network.
After Telegram’s withdrawal, a dedicated team of developers took over and rebranded the project as The Open Network. In 2020, it transitioned from Gram to Toncoin. Today, Toncoin (TON) serves as the chief token for the TON network, which is described as a distributed layer-1 blockchain system. The network has the potential to accommodate billions of users through blockchain sharding, a technique that incorporates multiple blockchains within one network. This approach ensures scalability and prevents any single chain from becoming overloaded with unprocessed blocks.
Toncoin operates on a proof-of-stake (PoS) consensus model, which involves validators confirming transactions through staking. This model is more energy-efficient compared to the proof-of-work model used by Bitcoin. The foundation of Toncoin is built on three essential tenets: scalability, user-centricity, and decentralization. It aims to provide lightning-quick transactions, minimal charges, and user-friendly interfaces while empowering users in a decentralized financial ecosystem.
Toncoin has a wide range of use cases, including in-app transactions, banking applications, social networking sites, gaming initiatives, NFT trading platforms, and DeFi systems. Telegram, despite distancing itself from the TON initiative, still integrates Toncoin functionalities within its platform. Telegram users can configure their exclusive TON wallet using the Wallet Bot feature, allowing them to transfer funds seamlessly. Additionally, Toncoin-specific wallets like Tonkeeper and TON Wallet provide users with storage and management tools for Toncoin.
Beyond its fundamental use cases, Toncoin underpins advanced blockchain platforms such as Ton Storage, Ton Proxy, and Ton Domain Name Service. Toncoin’s blockchain architecture employs blockchain sharding to distribute transactional data across different chains, ensuring efficient processing and scalability. The network can handle a high throughput of transactions at a minimal cost, making it suitable for deploying decentralized apps.
Toncoin can be purchased on various exchanges, including Huobi Global, Gate.io, KuCoin, and OKX. Decentralized platforms like PancakeSwap and UniSwap also support TON trading. To acquire Toncoin on centralized exchanges, users need to create an account, deposit fiat or other cryptocurrencies, and make the purchase. Decentralized exchanges require linking a crypto wallet and swapping existing cryptocurrencies for Toncoin.
In conclusion, Toncoin has evolved from Telegram’s project to become an independent force in the blockchain universe. Its unique architecture, scalability, and user-centric approach position it as a potential game-changer in decentralized applications and finance. Whether you’re a developer, investor, or everyday user, understanding Toncoin provides insights into the future of decentralized applications and finance, offering opportunities and potential that should not be ignored.
