Almost every member of the crypto community is likely familiar with or has at least heard of TON, a major crypto project that originated from Telegram, one of the largest messaging platforms available. In this post, we will explore all there is to know about this rising crypto star…

TON & Its Origins

The Open Network (TON) is a decentralized blockchain platform developed by an independent group of programmers. Its origins trace back to Telegram's controversial cryptocurrency project, which was abandoned due to regulatory challenges.

After Telegram's team made their code publicly available (open source), TON's developers decided to use it as a foundation for their own initiative. This decision was met without opposition from Telegram.

TON's ecosystem comprises several key components:

• TON Blockchain: The core element is a high-performance system processing millions of transactions per second. Dubbed the "blockchain of blockchains," it integrates various networks while preserving scalability, transparency, and decentralization.
• TON DNS: A domain name service allows users to assign easily readable names to wallets, smart contracts, and websites.
• TON Storage: A node-based service lets users create smart contracts based on network rules. TON's website calls it "reliable storage on the decentralized TON network." It works like torrent protocols, using disk space and computational power of network devices for decentralized data storage.
• TON Sites: These function like traditional websites but are exclusively accessible through the Telegram Open Network, creating a specialized layer within the web.

Developers position TON as a next-generation global network that combines the strengths of Web2 (centralized internet) and Web3 (blockchain-based decentralized internet).

TON Blockchain: Key Features

• Distinctive Lineage: This blockchain initiative stands out due to its connection to the well-known messaging platform Telegram and its founder, Pavel Durov.
• Telegram's Backing: The project's native token has gained practical use through Telegram's support. For instance, the cryptocurrency is now incorporated into the messenger's digital wallet. Additionally, users can utilize these tokens on Fragment, Telegram's platform for domain names.
• Inherent Scalability: Unlike some networks, TON doesn't require Layer 2 solutions to maintain performance as demand increases. This built-in efficiency makes The Open Network a compelling alternative to established platforms such as Ethereum.
• Comprehensive Framework: TON provides an extensive array of development resources aimed at fostering a decentralized internet ecosystem.
• Superior Processing Power: The TON blockchain boasts the capability to process millions of transactions per second without latency issues.

Toncoin: The Cryptocurrency

Toncoin is the cornerstone of the TON ecosystem. The project's website states that its initial testnet launch occurred in November 2019, predating Telegram's decision to abandon the project.

A fresh team of developers introduced Toncoin on a second testnet in May 2021. The token's official distribution took place in June 2022. Currently, TON functions as the primary currency within the entire ecosystem, serving as the principal means for settling fees and making purchases within the project's framework.

Smart Contracts & dApps

As explored earlier, the TON blockchain supports the execution of smart contracts, enabling developers to create and maintain decentralized applications (dApps). The primary function of Toncoin within this ecosystem is to cover the costs associated with transaction processing.

Toncoin Telegram Integration

Telegram has incorporated the revived Toncoin into its ecosystem through various means:

• Fragment allows users to acquire domain names or anonymous numbers using Toncoin.
• Telegram's built-in wallet facilitates crypto transactions, including the purchase of TON and several other popular cryptocurrencies.
• Content creators can now earn Toncoin. Durov has implemented a system where they receive a portion of advertising revenue.

In the absence of tradable Telegram shares, market participants may view Toncoin as a proxy, with its price movements potentially reflecting the company's activities.

Benefits of TON for Telegram Users

Toncoin functions as Telegram's unofficial currency, rewarding content creators and enabling anonymous transactions within the Telegram wallet ecosystem. Moreover, TON serves as a financial indicator, reflecting the company's market performance and activities.

TON Foundation & Community

The TON Foundation, established in Switzerland in 2023, describes itself as an entity dedicated to supporting skilled developers who aim to utilize the TON ecosystem and its tools to create dApps for a broader audience. Their guiding principle is encapsulated in the motto:

"We believe in the power of a decentralised future and self-sovereignty at scale".

TON Foundation offers developers a combination of financial support through grants, promotional assistance, and expert guidance.

Investing in Toncoin

Few cryptocurrency projects can boast the backing of a major messaging platform with a user base surpassing 800 million. The synergy between Telegram and TON establishes a robust foundation for demand and growth potential, enhancing Toncoin's appeal to investors.

Toncoin reached an all-time-high price of $8.24 in June 2024 and has since retreated to below $7. Toncoin is ranked #9 in the cryptocurrency rankings and there are currently over 2.5B Toncoins in circulation with a total supply of 5.1B. It’s current market cap is $17B+. For more information on pricing and pricing history, please visit CoinMarketCap.

We do not and cannot give investment advice and it is vital to never forget the inherent volatility with most cryptocurrencies means the potential to lose all your invested capital remains significant. Only invest if you can afford to lose your initial investment.

How To Buy & Store Toncoin

Toncoin can be acquired through various applications and exchanges. However, we recommend for those seeking optimal exchange rates, swift transactions, enhanced security, and full self-custodial ownership, you do so via Savl Wallet.

Common TON Misconceptions

• TON operates independently from Telegram. Following Telegram's decision to discontinue its cryptocurrency project, the open-source code was adopted by a separate group of developers. While no direct affiliation exists between the messenger and TON, both entities value their collaborative relationship.
• TON is not Telegram's official cryptocurrency. Although developed using the messenger team's initial framework, the coin is not owned or controlled by Telegram.
• TON retains the original name from Telegram's crypto initiative. The independent development team chose to preserve this name as a tribute to Durov's original project.

Conclusion

TON stands out as one of the most promising cryptocurrency projects, with a strong technical foundation and a vision to shape the internet's future. It has notable supporters, competitive usability, and backing from the crypto community. These advantages make TON an attractive option for investors seeking long-term growth opportunities.

DISCLAIMER: Cryptocurrencies are high-risk investments, and investors should be prepared to lose all funds. The information provided in this blog post is for informational purposes only and does not constitute financial advice. Savl does not provide investment recommendations. Remember, your capital is always at risk when investing in cryptocurrencies.