Open Network (TON) | Decentralized Computing Network | Crypto Deep Dive

Executive Summary

The Open Network (TON) is a decentralized computing network comprising a layer-1 blockchain that aims to onboard billions of users and facilitate fast, cost-effective, and energy-efficient blockchain transactions. As a Layer 1 blockchain, TON is renowned for its high-performance capabilities and operates on the Proof-of-Stake (PoS) consensus model. TON strives to develop a highly scalable and secure framework that supports a wide range of products and services, advancing the creation of a decentralized internet. It includes components such as the TON Blockchain, TON DNS, TON Storage, and TON Sites.

About the Project

Vision – To create a decentralized and open Internet.

Problem – The absence of fast and truly decentralized open-source projects hindered the development and adoption of crypto. Additionally, slow transaction speeds and high fees made it challenging for everyday users to utilize cryptocurrency for payments effectively.

Solution – Toncoin is the native token of a decentralized Layer 1 blockchain network. It can pay transaction fees, settle payments, or validate transactions through the TON blockchain’s Proof-of-Stake (PoS) consensus model.

History – TON, known initially as Telegram Open Network, was established in 2018 by the founders of Telegram, Nikolai and Pavel Durov. They successfully raised substantial funds through an Initial Coin Offering (ICO) to support the project’s development. However, during the project’s progress, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit, alleging that the TON token, TONcoin, was a security. Consequently, the original team ceased their involvement in the project. Despite this setback, the project’s popularity continued to grow. The community subsequently took over its development, rebranding it as The Open Network.

Features

A Distributed Supercomputer – The TON Blockchain functions as the system’s core, operating as a “super server” that orchestrates various products and services. Engineered to process millions of transactions per second (TPS), it lays the foundation for a rapid and secure decentralized internet, offering a wide array of services and products to realize this vision.

Scalable – Designed to process millions of transactions per second and quick block mining, making it suitable for mass adoption. Ton is one of the fastest chains active today.

Dynamic Sharding – TON utilizes work chains and dynamic sharding to support many users and transactions. It can process millions of transactions per second, dynamically splitting and merging shards based on demand to ensure efficient resource management.

Telegram Integration – TON is seamlessly integrated with Telegram, making it user-friendly and accessible for the average user. This integration offers a more streamlined experience compared to other protocols.

Market Analysis

Since its inception, blockchain technology has experienced exponential growth, reaching a current valuation of $2.6 trillion. Optimistic forecasts predict continued expansion, and governments’ increasing adoption further bolsters this bullish outlook. In the broader cryptocurrency industry, the most significant protocols are those with valuations in the billions of dollars.

TON, for example, ranks as the ninth most valuable cryptocurrency in fully diluted valuation (FDV). As one of the earliest projects in the crypto space, it has grown significantly and established itself as one of the leading chains. Competitors to TON include other Layer 1 chains, such as Ethereum and Solana, which have higher valuations and way more Total Value Locked (TVL). Recently, TON has been accumulating considerable TVL, demonstrating its expanding ecosystem.

Traction

Since the beginning of this year, TON has seen a substantial increase in Total Value Locked (TVL), highlighting the growing adoption of its ecosystem. Currently, the TVL stands at $750M+. The number of applications within the TON ecosystem has exceeded 980 and continues to rise, reflecting its robust and expanding developer community. This growth is a testament to the platform’s technological capabilities and increasing attractiveness to developers and users.

The integration with Telegram has the potential to be a game-changer. With 900 million monthly active users, Telegram’s adoption of TON will likely generate significant interest in purchasing and using $TON, thereby driving up demand. As TON continues innovating and introducing new features, it is poised to strengthen its position as a leading blockchain platform.

Token

Toncoin is the native cryptocurrency of the TON blockchain. It facilitates network operations and transactions and supports various applications, games, and collectibles built on TON. Unlike many other cryptocurrencies, Toncoin’s supply is unlimited. TON employs a proof-of-stake mechanism.

Toncoin serves multiple roles within the ecosystem:

• Payment Token: It is used for transaction fees, application services, DNS, storage, advertisements, proxies, and cross-chain activities.
• Staking Token: Validators and nominators use Toncoin for staking, which secures the network and provides incentives.
• Governance Token: Toncoin holders participate in decision-making processes regarding the platform’s development and governance.

The current supply of Toncoin is 5,109,127,210.

Burn Mechanism- Half of the transaction fees in TON are burned, meaning they are sent to a black hole address and permanently removed from circulation. Additionally, most of the slashed funds from misbehaving validators are also burned. This burning mechanism helps reduce the circulating supply, contributing to the TON network’s overall economic stability and deflationary aspects. Currently, TON has an inflation rate of 0.5%.

Investors

Team

The TON Network is overseen by the TON Foundation, which is dedicated to realizing the vision of an open internet. Community contributions entirely fund this non-profit organization. The Foundation supports TON projects without controlling TON technology, acting as one of many contributors within the decentralized TON Community. Anyone can contribute to the Network. The Open Network Foundation comprises various TON Community contributors who collectively bring diverse expertise to shape the platform’s development and drive its growth.

Conclusion

TON is one of the pioneering projects in the cryptocurrency space. It has garnered significant traction and is poised for continued growth. The platform’s vision aligns seamlessly with the original ethos of cryptocurrencies, emphasizing decentralization, security, and user empowerment. Its integration with Telegram, a platform boasting 900 million monthly active users, is a unique selling point, significantly enhancing user accessibility and adoption.

Additionally, TON’s robust technological foundation and active community support contribute to its promising future. The project is well-positioned to become a leading force in the blockchain industry, driving innovation and expanding its ecosystem.