- TON Coin is the native coin for the TON network.
- The project was initially backed by Telegram but later was revived by individual developers and the community who believed in it.
The cryptocurrency industry is continuously evolving with the launch of newer projects that offer better features and promise to address the existing challenges. Present blockchains (Bitcoin, Ethereum, etc.) have several issues, the major being scalability and security. Even though popular, boasting millions of users and billions of dollars in their networks, these platforms are clouded with the challenges that prevent them from being mass-adopted.
The Open Network (TON) was launched to become a blockchain that would be scalable and offer fast and efficient transaction speed. Initially launched as Telegram Open Network, with the Durov brothers (Telegram founders) behind the development team, the platform gained early popularity and success within the community. Their established success in the Telegram App helped the platform to raise $1.7 Billion in its token sale for project development.
However, it got caught in a web of lawsuits filed by the SEC in 2019, claiming it to be unregistered securities. TON lost the case and was asked to return the money to investors and pay an additional $18.5 Million in penalties. The team abandoned the project, but its source code was open and available on GitHub. Individual developers saw the potential of the platform and continued its development, eventually taking the shape of the TON we know today.
The Uses of TON
As we discussed, high transaction fees and slow processing time are the biggest hurdles faced by cryptocurrencies in winning the race and leaving established systems like Mastercard and VISA behind. TON is developed to offer million TPS and near-zero gas fees, making it feasible for day-to-day payments. Similarly, micro-transactions can also be processed safely.The principle of Blockchain sharding is used to support billions of users together over a network. The multiple shards (subnetworks) are all designed for specific purposes and prevent the piling up of blocks for validation. It is based on the Proof of Stake (PoS) consensus and presents opportunities for users to earn passive incomes by staking their tokens in pools.
The smart contracts on the platform are executed using the TON Virtual Machine (TVM), which supports the deployment of even complex smart contracts. Users can access the blockchain without censorship through VPN or TOR using its TON Proxy. The TON Storage feature enables users to store large pieces of information over the blockchains with added layers of security using encryption.
Developers can host dApps on the platform using the TON services, which provide a user-friendly interface to create applications. StickerFace is one of the most popular apps on the network, which allows users to create their NFT avatar. Other popular apps include TON Diamonds, TON Cats, and TON Hamsters.
A remarkable feature is the @wallet bot, which provides the flexibility to send and receive tokens in the Telegram app. This bot can be integrated with any chat window and enables users to make payments to anyone in their contact list, making it suitable to use every day. While using the Telegram app, the TON payments are made without any transaction fees.
The Nots with TON
Like any other cryptocurrency, TON also travels with its backpack of risks and uncertainty. It is volatile, as are others, which can cause fluctuations in its price, causing trouble to investors. The regulations around digital tokens are still unclear. Countless blockchains and crypto companies have faced scrutiny from the government. The risks of scams, fraud, and attacks can never be eliminated. TON is new in the market and has to compete with well-established and accepted coins.
Conclusion
A blockchain project needs to continuously develop and create more features to survive in such a competitive space. The more developers are attracted to the network because of its incentives and healthy environment, the more high-end applications could be developed to attract more users and build a hearty community. However, even with such promises, an investor must always be aware of the risks and rewards associated with any project and invest only after thorough research.
