
The Open Network is a new blockchain project with deep connections to the popular messaging app Telegram. While not officially affiliated with Telegram, TON has close ties. This article takes a close look at TON, exploring its key concepts, features, and its potential impact on the blockchain space.
TON, short for The Open Network, is a blockchain-based decentralized computer network initially developed by the Telegram team, the most used crypto communication tool.
TON provides many services including:
The open network operates as a Layer 1 blockchain, similar to other networks like Solana and Ethereum. It uses a proof-of-stake (PoS) consensus mechanism, where nodes in the network become validators by staking Toncoin.
It all started one day when the Telegram Messenger team started looking for some blockchain applications that could be easily integrated into a messaging platform. The team also wanted to support its users with this platform. Even when they did not have one at their disposal that suited their description of the perfect partner, they opted to build it from scratch.
The plan was initially brought forward by two Russian brothers, Nikolai and Pavel Durov, where the latter was arrested in France not that long ago.
When they launched the Telegram Open Network (TON) and its associated digital asset known as Telegram’s Gram in 2018, its launch drew large interest and funded a very impressive $1.7 billion during its ICO, which positioned it as one of the most popular cryptocurrency ICOs ever.
Having all this support and funds at their disposal, the team at Telegram began working on the realization of this new Layer 1 blockchain. As TON was close to being fully developed, the US Securities and Exchange Commission intervened and filed legal charges against Telegram for using an unregistered securities sale, which halted the launch of the project. A legal battle started later in 2020, and Pavel Durov announced that Telegram was out of the project.
After paying $18.5 million in fines to the SEC, the team offered refunds to investors and put a halt to further development of TON and its associated test network called “testnet2”. At that time, TON’s code was open source and could be found on GitHub, which means that anyone could contribute to the program.
Finally, deciding that the project just had too much potential to waste, a small team of developers led by Anatoliy Makosov, a software developer, and Kirill Emelyanenko, a programmer with a Ph.D. in Physics and Mathematics, decided to take up the mantle and continue the development of TON. Both developers are still part of the TON Foundation team and work on core development.
Though the current network is entirely separate from Telegram, in 2021, Pavel Durov said that he was glad the project would go on and wished the new team good luck.
Jumping to the year 2021, the Telegram Open Network received a small redesign. The original testnet2 by the Telegram team became Mainnet, the new ton team became TON Foundation, and the whole project was renamed as The Open Network – an attempt to retain the acronym TON.
While Telegram distanced itself from the direct control of the TON blockchain, the connection between Telegram and the platform remains strong. Telegram is the fourth most used messaging platform in the world and has millions of daily active users, approximately 200 million per month.
One of the interesting peculiarities within Telegram is integration with mini-applications, which are also called mini-apps. Such applications, particularly games, are developed on the TON blockchain and enable users to make money.
The Ton Foundation, a non-profit managing the TON network, has established several high-profile partnerships.
Major tech companies like Tencent Cloud and Chainbase are contributing to Toncoin’s growth. Tencent Cloud supports TON’s validators and aids the network by supporting applications and bots built on Telegram, which benefits Telegram games. Chainbase, on the other hand, sets data indexing products on TON.
One of the most important partnerships is the integration of Tether’s US dollar-backed stablecoin (USDT) that makes it easy to send and receive USDT via the Telegram app.
In 2024, Toncoin partnered with Animoca Brands and its Mocaverse initiative to create a joint identity and reputation-based consumer network. It also formed a partnership with Travala.com, a crypto-native travel booking platform.
This review of Toncoin (TON) was created for informational purposes. This article is not intended for promotion.
TON operates through a combination of unique architectural elements and consensus mechanisms to provide its fast and secure transaction processing. Let’s explore how TON works.
TON utilizes a Byzantine Fault Tolerant (BFT) consensus mechanism called the Block-Proof of Stake (BPoS) consensus. Validators, who hold and stake TON’s native cryptocurrency, participate in block validation and consensus making.
TON is structured as a multi-layered network comprising the masterchain, workchains, and shardchains. The masterchain acts as the central coordinator and it manages key network operations such as protocol updates, validator elections, and maintaining the final state of all subordinate chains.
Complementing the Masterchain are Workchains, which are independent blockchains that operate in parallel. Each Workchain is tailored to specific applications or transaction types, featuring its own unique rules and consensus mechanisms. Despite their independence, Workchains synchronize with the Masterchain to ensure validation and interoperability.
The Architecture Behind The Open Network
At any given time, each workchain within TON is divided into multiple shardchains, depicted as leaves of a binary tree. This structure means that each account within a workchain is assigned to a specific shard. The configuration of these shards, including all active shards for a given workchain, is stored in the masterchain state and is accessible to all participants.
A unique aspect of TON’s sharding is its dynamic nature. Unlike other blockchains with a fixed number of shards, TON can adjust its number of shards in response to network demand.
Each shard in TON operates independently with its own set of validators and this independence allows for multiple transactions to be processed simultaneously across different shards without interference.
The TON Virtual Machine (TVM) provides, in a similar way to the original Ethereum Virtual Machine, a secure and isolated environment for executing smart contracts on the network and managing state transitions for a consistent operation across the network.
The TVM is Turing-complete, which means it can execute any computable algorithm. It also supports unique programming languages like FunC, Tact, and Fift, which, despite their learning curve, optimize performance and efficiency for TON-specific applications on the TON network.
Toncoin serves multiple purposes within the TON ecosystem. It is used for paying transaction fees, staking for network security, earning rewards, and voting on network development proposals. It has a total supply cap of around 5 billion tokens.
As TON is a self-governing blockchain where any network modifications or updates necessitate the approval of 66% of its validators, these validators are incentivized to secure the network through staking.
To become a validator on The Open Network (TON), individuals or entities must meet stringent eligibility criteria such as a minimum financial commitment of 300,000 Toncoin that is required as a stake.
Validators also need to set up a high-performance server that meets specific technical specifications, including at least 8 vCPUs, 64 GB of RAM, and 1 TB of SSD storage, along with a high-bandwidth internet connection.
Before they can start validating, candidates must establish and synchronize a full node with the blockchain. They also need to install and configure specific software tools such as mytonctrl, which aid in node management and facilitate participation in the consensus process.
Becoming a validator involves several stages:
Validators are compensated with rewards based on their stake and performance in the validation process.
Creating a step-by-step guide on how to stake Toncoin (TON) using different methods can make the process more accessible for users of all levels of experience. Here’s a structured guide for engaging with TON staking:
Decide which staking method fits your investment style and technical expertise:
Before you can stake, you need to have TON in your wallet:
Prepare your wallet to interact with the TON network:
Follow the specific process based on the staking method you chose:
Keep track of your staking performance and rewards:
As a stakeholder, you may have the right to participate in the governance of the network:
When ready to withdraw:
This guide simplifies the process of staking TON across various methods, ensuring that you can make informed decisions and manage your investments effectively.
TonCoin Staking & 10% Daily Rewards? Step-by-Step Guide How to Use Ton Stake and Receive Coins
The Ton blockchain is ranked 27th in terms of Total Value Locked (TVL), which amounts to $344.58 million according to DeFi Llama. This represents a drop, as the TVL on the Ton blockchain decreased from nearly $800 million after its initial hype.
A central element of this growth could be the 5 Million Toncoin DeFi Incentive Program initiated by the TON Foundation.
As touched upon before, Telegram supports transactions using USDT, a stablecoin pegged to the US dollar, on the TON blockchain. This integration allows users to send and receive digital dollars (USDT) as easily as sending a message, making it exceptionally convenient for both personal and business transactions.
Here is a Step-by-Step Guide on How to Use Telegram’s @Wallet Bot for USDT Transactions:
The expansive growth of the TON ecosystem, which now hosts over 650 dApps including DeFi, gaming, and NFT applications, and its strategic ties with Telegram could mean a formula for success.
Toncoin’s market position could be influenced by Telegram’s potential stock market IPO, which if this would happen could mean a kind of approval of all applications connected to Telegram.
However, the potential centralization in its PoS staking and more importantly regulatory challenges from its origins to Telegram or to anyone linked to the network could mean a soft spot in its growth.
Lastly, with the establishment of TONcoin.Fund, a $250 million investment fund, they have close to unlimited money for further expansion of their ecosystem and legal battles and to position themselves better than before.
Toncoin, with its unique relation to crypto’s favorite messenger app Telegram, has made an impressive debut in the space. As it continues to develop and expand its functionalities and user base, Toncoin could potentially become one of the most used blockchains, because Telegram’s user base is immensely big. So keep a close eye on Toncoin’s developments.
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