The Telegram Open Network Deep Dive : The Current Rising Star

Introduction

The Telegram Open Network (TON) recently integrated into Telegram. This caused the active TON addresses on the Ethereum network have skyrocketed, increasing sevenfold and surpassing the 300 mark for the first time since last December. This surge is attributed to the integration of the TON token into the Telegram app, which has led to an 87% increase in the price of the TON coin over the past month. Interestingly, despite this integration, TON still operates independently of Telegram.

The TON Network is more than just a blockchain; it's a decentralized and open internet platform comprising several components like TON Blockchain, TON DNS, TON Storage, and TON Sites. Designed as a distributed supercomputer, TON aims to process millions of transactions per second and eventually serve hundreds of millions of users. The network is focused on achieving widespread cross-chain interoperability while operating in a highly secure framework. The TON Foundation has even unveiled plans to launch TON Space, a self-custodial wallet within the Telegram app, allowing users to access all their digital assets and engage with mini apps.

We wrote this article to give you a comprehensive look at the TON Network, as understanding TON's capabilities and potential can offer valuable insights. As it continues to evolve and integrate with platforms like Telegram, TON is a project worth keeping an eye on.

Understand TON

TON is a multi-chain blockchain platform designed for high performance, versatility, and scalability. It's a go-to choice for developers and businesses who want to build decentralized applications that can handle a large number of transactions per second. Unlike traditional single-chain blockchains, TON operates on a unique "blockchain of blockchains" architecture. This allows it to dynamically split or merge chains to handle varying transaction loads, making it incredibly scalable.

When it comes to innovations, TON is ahead of the curve. It supports dynamic sharding, allowing the network to adjust its structure based on transaction volume. It also has a special chain called the MasterChain, which synchronizes message routing and transaction execution across all other chains. This ensures that transactions are processed quickly and efficiently.

Now, how does it compare to other blockchains like Ethereum and Solana? TON offers faster block times and transaction finality. While Ethereum takes about 12 seconds for a new block and 10–15 minutes for finality, TON does it in about 5 seconds and under 6 seconds, respectively. Solana is fast too but lacks the sharding support that TON offers. In terms of scalability, TON can potentially handle millions of transactions per second thanks to its dynamic sharding, something that Ethereum and Solana currently can't match.

From Original Vision to Current Development

The original team behind the TON was led by Pavel Durov, the founder of Telegram. They aimed to create a fast, secure, and scalable blockchain and had a vision of integrating it with Telegram to reach a broader audience. However, due to regulatory issues, the original TON project was halted, and the team returned the funds to the investors.

TON Labs, the technology company behind the revival of TON, has a team of experienced developers and blockchain experts. According to Crunchbase, TON Labs raised $6 million in a seed funding round to further develop and expand the TON ecosystem.

In addition to TON Labs, the TON ecosystem is also supported by TONcoin.Fund, a $250 million syndicate that invests in ecosystem projects. The fund is interested in a wide range of sectors within the Web3 space, including infrastructure, DeFi, gaming, and social finance. They provide various funding options, from pre-seed to Series A, and even offer grants for projects contributing to the public good. The fund aims to bring value to the TON ecosystem by investing in strong teams and innovative projects.

Understanding The Open Network's Architecture

The TON blockchain is designed to be a "blockchain of blockchains," offering a highly scalable and flexible architecture. At its core, TON operates on the concept of "actors," which are essentially smart contracts with properties like address, code, data, and balance. These actors respond to events, execute code, and can modify their own properties. Transactions in TON are strictly ordered and cannot interrupt each other, ensuring a smooth flow of operations.

One of the key innovations in TON is the concept of AccountChains and ShardChains. An AccountChain is a sequence of transactions related to a single account, while a ShardChain is a collection of multiple AccountChains. This structure allows for dynamic splitting and merging of ShardChains, enabling the network to adapt to varying transaction volumes. For instance, if a ShardChain becomes too busy, it can be split into smaller ShardChains to distribute the load among different nodes.

Another unique feature is the MasterChain, a special chain used for synchronization and consensus across the network. The MasterChain contains additional information about all other chains, allowing for a unified view of the entire multichain system. Compared to other blockchains, TON offers a more modular and scalable approach. It allows for the creation of custom Workchains, which are blockchains with their own set of rules. This makes TON highly adaptable and capable of supporting a wide range of applications and smart contracts.

The TON Tokenomics

The TON coin tokenomics are carefully designed to balance supply and demand while incentivizing network participation. With a lttle over 5 billion TON as the supply cap, the token aims to maintain its value over time. Currently, 3.4 billion TON are in circulation, and validators are rewarded in TON for their role in maintaining the network's integrity.

One of the unique aspects of Toncoin is its inbuilt annual inflation rate of 0.6%. This modest inflation rate ensures that the total supply can grow. It's a smart way to encourage long-term investment and network participation.

Toncoin's efficiency comes from its Proof of Stake (PoS) consensus mechanism. Validators are rewarded based on the size of their stake, receiving a portion of the transaction fees instead of mining new blocks. This approach not only conserves energy but also speeds up transaction processing. Since June 2022, Toncoin has fully transitioned to a PoS model, ending its PoW mining phase. This transition ensures that the network remains efficient and sustainable in the long run. The PoS mechanism also allows for staking programs, where users can earn additional TON by holding and staking their tokens.

The Impact of Telegram Integration and Future Prospects

The TON Network is gaining significant attention in the crypto world, largely due to its recent integration with Telegram. TON reached $8.5 billion in market cap and recently broke into the top 10. Current data shows that the network's Total Value Locked (TVL) is $10.62 million.

This growth spurt in TON's metrics is closely tied to its Telegram integration. The price of TON coin has shot up by 87% in just a month, and the number of active TON addresses has increased sevenfold. Interestingly, this surge has occurred even though TON and Telegram are not officially linked. On September 16, the network saw its highest activity since last December, with 1.2 million TON tokens, or about $3 million, being transferred.

Investors are excited about TON's full integration with Telegram, which has a massive user base of 800 million active monthly users. The TON Foundation is also planning to introduce TON Space, a self-custodial wallet within the Telegram app. This will allow users to manage their digital assets and interact with mini-apps, enhancing both TON's and Telegram's ecosystems.

Final Thoughts

The TON is a fascinating blend of innovation and real-world utility, setting itself apart in the crowded blockchain landscape. The network's unique architecture, featuring dynamic sharding and a MasterChain, offers a level of scalability and efficiency that rivals well-known blockchains like Ethereum and Solana.

The team behind TON, from its original visionaries to the current developers at TON Labs, has shown a steadfast commitment to innovation. With substantial financial backing, including a $250 million syndicate fund, the ecosystem is poised for growth across various sectors like DeFi, gaming, and social finance.

The network's native token TON is another highlight. Its well-crafted tokenomics, including an inbuilt annual inflation rate of 0.6%, are designed to sustain long-term value and incentivize participation. The transition to a Proof of Stake model further underscores the network's focus on efficiency and sustainability.

The surge in TON's market cap indicates that the network is gaining traction. Investors and users alike are optimistic about its full integration with Telegram, which boasts a massive user base. Plans for TON Space add another layer of excitement, promising to enrich both TON's and Telegram's ecosystems.