Toncoin has gained traction in the blockchain sector. Originating from Telegram’s TON (Telegram Open Network) project, it grew on its own after Telegram stepped back. This article dives deep into Toncoin’s journey under the TON Foundation, transitioning from a messaging app vision to a distinct force in the decentralized realm.
Toncoin’s History and Its Link to Telegram’s GRAM
In 2018, the Telegram Open Network (TON) was launched to facilitate crypto dealings within Telegram, but it faced early challenges. Gram was TON’s original cryptocurrency, but issues arose when the SEC highlighted Telegram’s failure to register a pre-sale worth $1.7 billion in Gram tokens. The SEC halted Gram sales due to this, resulting in Telegram’s legal loss. Simultaneously, TON’s launch was plagued by cyber frauds falsely promising free Grams. These issues tarnished both TON’s and Telegram’s reputations.
By 2020, SEC pressures led Telegram to abandon its crypto pursuits. Post its SEC clash, Telegram promised a 72% refund to Gram investors but only returned 70%. Eventually, Telegram’s founder, Pavel Durov, detached from TON. However, a team of developers revived it as The Open Network, replacing Gram with Toncoin in 2020. Presently, TON promises fast transactions, low fees, user-centric design, and emphasizes eco-friendliness.
Toncoin’s Potential in Decentralized Services
Toncoin is adept at providing swift financial services. Traditional banking can be slow, while Toncoin aims for immediacy in managing and transferring funds. A key TON feature is its integration into apps, allowing software developers to incorporate Toncoin effortlessly, enabling TON-based transactions. This extends to applications like banking apps, social media, blockchain games, NFT platforms, DeFi systems, and more. Traditional Web2 businesses can also adopt TON, enhancing crypto engagements.
Despite distancing from TON, Telegram has incorporated Toncoin features. Their Wallet Bot allows users to establish a TON wallet, making fund transfers within their circle easy and fast. Telegram users can quickly send money internationally, bypassing traditional banking hurdles. They can also transfer TON assets to different crypto wallets, trade TON for other cryptocurrencies, and use specialized wallets like Tonkeeper and TON Wallet.
Moreover, Toncoin supports advanced blockchain platforms. Ton Storage provides decentralized storage solutions, Ton Proxy enhances online user privacy, and the Ton Domain Name Service simplifies domain naming for dApps based on Toncoin.
How Toncoin Functions
Initially launched by Telegram, Toncoin’s development was later adopted by the TON Foundation.
Toncoin boasts a robust user community and operates as a standalone Layer-1 blockchain. It’s equipped with its complete blockchain system.
At the heart of Toncoin is a unique architecture that employs blockchain sharding with smart contracts to hasten transactions. By distributing transaction data across master, work, and shard chains, congestion is reduced, facilitating speedy transaction processes. This design is central to Toncoin’s notable scalability.
Toncoin can process transactions in mere seconds. Theoretically, it can accommodate up to a million transactions per second, ranking it among the most scalable blockchain platforms.
One of Toncoin’s standout features is its high throughput. With transaction fees just a tiny fraction of a US dollar, it’s a prime choice for deploying decentralized apps (dApps).
The foundation of Toncoin is the Proof-of-Stake (PoS) consensus mechanism. Over 200 validator nodes oversee transaction processing, with these nodes holding TON coins as a stake.
Interested individuals can stake TON through these nodes and earn from transaction fees. However, the network ensures security by potentially seizing staked TON from validators endorsing deceitful transactions.
Where to Acquire Toncoin
Major Toncoin platforms include Huobi Global, Gate.io, KuCoin, and OKX. PancakeSwap and UniSwap are top picks for those leaning towards decentralized trading, with others like HitBTC, BitMart, and Poloniex also in the mix.
Users set up an account on centralized platforms, deposit funds, and procure TON. Some platforms even allow direct purchases via credit or debit cards.
From its origins with Telegram to the leadership of the TON Foundation, Toncoin exemplifies adaptability and resilience. An innovative design that ensures rapid transactions and scalability makes it a potential trailblazer in the blockchain landscape.
As decentralized finance and apps expand, Toncoin’s adaptability remains prominent.
For developers, investors, or daily users, exploring Toncoin offers insight into the future of the decentralized domain, which is filled with immense potential.
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