Telegram is a messenger application popular among hundreds of millions of users across the world. Now, imagine if the app creates its own crypto platform and at least 1% of those users take an interest in it… Well, this is pretty much the reality.
Although there is no data on how many Telegram users will actually adopt the TON token, and although this cryptocurrency is technically no longer officially connected to the aforementioned messenger app, there will always be an association between the two.
Even outside of that, Toncoin is an amazing crypto project in and of itself. Today, I will talk about this fascinating cryptocurrency and its features, and will cover what TON had to go through to arrive at where it is today.
What Is Toncoin (TON)?
Toncoin, often referred to as TON, is the native cryptocurrency of a decentralized layer 1 blockchain that emerged from the initiative of the renowned messaging service Telegram in 2018. Initially introduced as the “Telegram Open Network,” the project took a twist when Telegram withdrew its involvement. Following this, the TON Foundation, a passionate and independent community of enthusiasts, took the helm and rebranded the project as “The Open Network.” The native digital currency of this network, Toncoin (TON), was previously known as Gram.
Central to the TON network’s design is the objective of refining transactional processes. With Toncoin functioning as its principal cryptocurrency, the network prioritizes efficiency, ensuring transaction fees are both minimal and conducive to optimal network operations. In addition to this transactional framework, the TON network has made significant strides in offering decentralized storage capabilities, emphasizing security and functionality in equal measure.
In an era where terms such as “exchange commission” often dictate market dynamics, both Toncoin and the overarching TON network stand as embodiments of decentralization and technological advancement, meticulously developed to serve the evolving needs of the digital finance sector.
Toncoin Use Cases
Toncoin isn’t just another cryptocurrency; it’s the lifeblood of a vast and growing ecosystem. Here are some of the primary applications of Toncoin:
- Ecosystem Facilitator. Toncoin’s principal purpose is to empower the development of decentralized applications (dApps).
- Transaction Fees. It serves as the fee for processing transactions and is pivotal for cross-chain exchanges.
- Staking Medium. Since its use in staking payments ensures the protection of the blockchain and its myriad services, it plays a vital role in blockchain security.
- Decentralized Data Payment. Toncoin can also be used as payment for decentralized data storage and TON DNS/TON Proxy and to cover other fees within various decentralized services.
- Governance Tool. Toncoin offers an avenue for community members to voice their preferences, allowing them to vote on developmental trajectories and changes within the TON governance framework.
- Reward System. It serves as a token of appreciation, rewarding validators for their contribution. By supporting validators with their tokens, nominators can also earn rewards, further decentralizing the power dynamics.
What Is TON Storage?
TON Storage is one of the best inventions of the TON Foundation. It works in a similar way to traditional file-sharing services (e.g., Dropbox) but prioritizes privacy and security by offering features like private encryption.
What Is TON Proxy?
TON Proxy makes it possible for users and token owners to access the TON blockchain via decentralized networks. It is an excellent tool that enables network participants to avoid censorship and fully retain their anonymity.
Why Is Toncoin Unique?
What sets Toncoin apart in the bustling world of cryptocurrencies?
- Record-Breaking Speed. The Open Network prides itself on its ability to swiftly process and validate transactions. In a notable feat from September 2021, the network achieved an astonishing 55,000 TPS, although current rates could be significantly higher.
- Eco-Friendly. Unlike some other blockchains, TON’s operations don’t take a toll on our environment.
- Revolutionary Structure. The TON network operates on a multi-layered model with the sharding principle at its heart, often described as a “blockchain within a blockchain.” This structure aids in dodging the accumulation of unverified blocks and facilitates quicker operations.
- Comprehensive Services. The TON ecosystem boasts a plethora of services, from TON Wallets catering to different user preferences (custodial and non-custodial) to TON Services, which offers a platform for developers to craft dApps. There’s also the TON Storage, ensuring encrypted privacy; the TON Proxy, facilitating decentralized VPN access; and the TON DNS, enabling traditional website functionality within the TON framework.
- PoS Consensus Mechanism. The adoption of the proof-of-stake consensus mechanism ensures transaction validation is both swift and efficient. Validators and nominators, crucial to this process, function within the confines of smart contracts, fortifying network security. Moreover, all of this operates seamlessly under the TON Virtual Machine (TVM).
In summary, Toncoin is more than a mere cryptocurrency: it’s the linchpin of a dynamic, community-driven blockchain universe characterized by its speed, versatility, and commitment to a decentralized future.
History of Toncoin (TON) and The Ton Network
In 2018, the encrypted messaging giant Telegram announced the TON blockchain. Originally christened Gram, it promised to handle millions of transactions per second, aspiring to cater to billions of users worldwide. In addition to fast processing, it aspired to create a whole suite of decentralized services, like a domain name system, decentralized storage, and more. The crypto market was abuzz as the project raised a staggering $1.7 billion, marking it a notable player in the world of crypto exchanges.
However, the journey wasn’t without challenges. Encounters with the U.S. SEC regarding regulatory compliance led to Telegram stepping back. In May 2020, Telegram’s founder Pavel Durov announced that the company would cease its participation in the blockchain’s development. Refunds began being issued to all the crypto enthusiasts who had initially invested in the project. But TON’s story didn’t end there. The project’s open-source nature allowed the TON Foundation to step in and revive the blockchain.
Toncoin, TON’s native token, was born in this renaissance. Designed for the TON ecosystem, it aimed to become an integral part of the crypto market, championing features like an instant payment platform and an anonymous network. As TON and Toncoin continue to evolve, they remain committed to their vision of serving millions, if not billions, of users worldwide.
Toncoin Price History & Price Prediction
Toncoin has had a few ups and downs throughout its existence. The token reached its peak shortly after its launch, achieving an all-time high of $5.84 on November 12, 2021. The price of TON has since declined but has had several rallies, most notably at the beginning of 2023.
You can see our Ton price prediction here.
Where Can You Store TON Tokens?
There are several ways to store Toncoin and other TON blockchain digital assets. TON provides its users with both custodial and third-party non-custodial wallet options. While custodial wallets offer ease of use, non-custodial ones appeal to those seeking greater control over their holdings. For transactions via Telegram, the @wallet is necessary, whereas the @cryptobot assists Telegram users in managing and exchanging their Toncoin.
There are roughly over 700,000 unique TON wallets processing ultrafast transactions on a daily basis. Some great Toncoin wallets include MyTonWallet, Tonkeeper, Tonhub, and more.
FAQ
Should I buy Toncoin?
Like any other altcoin and cryptocurrency in general, Toncoin has an incredibly volatile price. It cannot be considered a safe investment. However, its value is hard to deny: after all, it has a connection to one of the biggest messenger apps in the world, Telegram.
Telegram is growing in popularity and expanding the list of available functions with every passing year, and seems to be committed to developing its own version of the crypto platform.
All that said, please remember to exercise caution and DYOR before investing in TON.
Is there TON staking?
Yes, you can stake Toncoin to earn a passive income. In order to start staking the token, you will first need to get a Toncoin wallet. Next, find a suitable liquidity pool and deposit your funds.
Where can I buy Toncoin?
You can buy Toncoin on most major crypto exchanges, Changelly included. All you need to purchase Toncoin is a compatible wallet and some fiat money.
What is Telegram, and what connection does it have with Toncoin?
Telegram is a popular messaging app. It was the company that originally launched Toncoin. Later, the connection between the two was officially severed, but they still work together, seeing as Telegram has great interest in Web 3.0 and blockchain technology. In September 2023, the company announced the launch of an in-app TON wallet that will be available to most app users.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
