Toncoin And The Ton Network Explained

The Open Network or TON and its native currency Toncoin has been one the most talked about blockchain topics in 2024. Its staggering growth continues to capture headlines across crypto discussions. As of August, the network has expanded from 3.6 million addresses at the beginning of the year to over 39.5 million addresses. The total value locked (TVL) on the network has also surged by 1,400%, reaching nearly $800million in July 2024. Additionally, the number of active wallets on the TON blockchain has grown to 9.57 million.

The integration with Telegram, which has over 900 million monthly active users, has been a key driver of this growth. So, as the TON ecosystem continues to expand with the launch of new applications and games, it’s important to understand this unique network and its features. 

So, what is the TON network? And what’s making it so popular?

Key takeaways 

• What is TON blockchain?: The Open Network (TON) is a decentralized blockchain developed by Telegram, designed for high scalability, fast transactions, and user-friendly accessibility.
• Key features: TON has a multi-blockchain architecture, supports infinite sharding for scalability, and is deeply integrated with Telegram, enabling seamless access to blockchain services.
• What is Toncoin?: Toncoin is the native cryptocurrency of the TON blockchain, used for transaction fees, staking, and governance within the network.
• Integration with tap-to-earn games: Toncoin is used in popular Telegram-based games like Notcoin and Hamster Kombat, boosting its adoption and engagement across the network.
• Recent growth: TON blockchain has rapidly expanded in 2024, with over 39.5 million addresses, a 1,400% increase in TVL, and Toncoin reaching new all-time highs.

Ton Network explained

What is Telegram’s The Open Network (TON)? 

The TON (The Open Network) is a decentralized blockchain network initially developed by the creators of Telegram, Nikolai and Pavel Durov. It was designed to be a fast, scalable, and user-friendly platform capable of supporting a wide range of decentralized applications (dApps) and services.

Initially launched as Telegram Open Network, the project was halted due to legal challenges from the U.S. Securities and Exchange Commission (SEC). After Telegram stepped back, the project was taken over by the open-source community, rebranding it as 'The Open Network'.
 

Key features of the TON blockchain

• High throughput: TON can process millions of transactions per second due to its unique multi-blockchain architecture. This scalability makes it highly efficient and capable of handling a significant load without slowing down.
• Decentralization: TON employs a proof-of-stake (PoS) consensus mechanism, which is more energy-efficient and allows users to participate in securing the network by staking their tokens.
• User-friendly: TON is designed to be accessible to a broad audience, with features like easy wallet creation, straightforward payment processes, and seamless integration with Telegram.

Why is TON becoming popular?

A large part of TON’s surging popularity is driven by its integration with Telegram. The messaging app’s large user base provides TON with instant access to millions of potential users. Recently, Telegram started supporting its mini apps with TON, which has enabled seamless crypto transactions within the messaging app, increasing its adoption.

Also, the network’s ability to handle high volumes of transactions makes it attractive for decentralized finance (DeFi) projects and other applications requiring fast and reliable processing. 

Despite initial setbacks due to regulatory issues, the community has continued to develop and enhance the network. The decentralized nature of its development has allowed it to evolve rapidly, attracting developers and users alike.
 

How is TON different from other blockchains? 

TON sets itself apart from blockchains like Ethereum and Solana with its unique multi-blockchain architecture and 'infinite sharding' capability. Imagine a highway that can automatically add more lanes as traffic increases, preventing congestion and keeping cars moving smoothly. This is how TON's infinite sharding works — when the network experiences heavy usage, it splits into smaller, more manageable chains (or 'shards') to handle the load efficiently. 

While Ethereum has a similar sharding model with Ethereum 2.0, TON is more scalable and faster. Additionally, TON’s integration with Telegram allows users to access blockchain features as easily as sending a message, unlike other blockchains that require separate apps or plugins.

Here’s a more detailed look into TON’s differentiating features:

1. Multi-blockchain architecture

TON uses a multi-blockchain structure, consisting of a masterchain and up to 292 accompanying workchains, each capable of having its own set of rules. This architecture allows TON to handle millions of transactions per second (TPS), making it one of the fastest blockchain networks.

In contrast, traditional blockchains like Bitcoin or Ethereum operate on a single-chain model, leading to slower transaction speeds and scalability issues.

2. Infinite sharding 
TON implements an 'infinite sharding' mechanism, where workchains can split into multiple shards to balance the load automatically. This ensures the network remains scalable, even as usage grows.

3. Dynamic workchains
Unlike most blockchains where chains are static, TON’s workchains are dynamic. They can be added or removed based on demand, optimizing resource allocation across the network.

This flexibility is not typically found in blockchains like Bitcoin or Ethereum, which have fixed operational structures.

4. Built-In DNS
TON includes a built-in DNS (Domain Name System) service that allows smart contracts, services, and users to have readable names, making it more user-friendly. This reduces the complexity of interacting with blockchain addresses.

Most blockchains do not offer such a feature natively. Projects like Ethereum Name Service (ENS) exist on Ethereum to provide similar functionality, but they are not built into the blockchain itself.

5. Seamless integration with Telegram
TON is closely integrated with Telegram, one of the world’s largest messaging platforms. This integration enables easy access to blockchain features, such as payments and smart contracts, directly within the app, lowering the barrier for entry for non-technical users.

Other blockchains lack such deep integration with popular platforms, often requiring third-party apps or plugins to interact with blockchain features.

6. Proof-of-Stake Consensus
TON uses a PoS consensus mechanism, which is more energy-efficient than the proof-of-work (PoW) models used by older blockchains like Bitcoin. PoS also allows for faster transaction validation and better scalability.

7. User-centric design
TON emphasizes ease of use with features like lightweight wallets, user-friendly interfaces, and accessible development tools. This focus on user experience sets it apart from many blockchains that are primarily designed for developers and tech-savvy users.

TON and tap-to-earn games

A big part of TON's growing popularity is being driven by its influence on Web3 games. The network has arguably pioneered a new segment in web3 gaming called 'tap-to-earn' games. It offers a unique and scalable blockchain platform that integrates smoothly with mini-games in Telegram. 

Telegram-based tap-to-earn games like Notcoin, TapSwap, and Hamster Kombat, have gained millions of users due to their simple and engaging gameplay. These games allow players to earn rewards with minimal effort, making them highly accessible to both crypto enthusiasts and newcomers alike.

🐹 @hamster_kombat coming to #TON! https://t.co/lQDff6CG1m

— TON 💎 (@ton_blockchain) June 12, 2024

The TON network’s scalability and ease of use are key factors that set it apart from other blockchains in GameFi. It can handle millions of transactions per second, ensuring that GameFi projects built on TON can scale without performance issues. 

Additionally, the integration with Telegram has made it easier for games to reach a massive audience quickly, driving broader adoption of blockchain gaming. This combination of technology and accessibility positions TON as a game-changer in the GameFi space, attracting both developers and players to its ecosystem.

TON’s flexible blockchain structure supports the evolving needs of GameFi, where decentralized economies, in-game assets, and NFTs are increasingly important.
 

What is Toncoin? 

Toncoin is the native cryptocurrency of The Open Network (TON), a decentralized blockchain originally developed by the creators of Telegram. Toncoin serves as the backbone of the TON ecosystem, facilitating various functions, including transaction fees, staking, governance, and payment for services within the network.

What is Toncoin used for?

• Transaction fees: Toncoin is used to pay for transaction fees across the TON blockchain. Its high throughput and low fees make it ideal for microtransactions and everyday payments.
• Staking and governance: Holders of Toncoin can participate in staking to help secure the network and earn rewards. Additionally, they can vote on important network decisions, contributing to TON’s decentralized governance.
• Service payments: Within the TON ecosystem, Toncoin is used to pay for services such as smart contract execution, data storage, and more.

Why is the Toncoin price rising? 

The price of Toncoin has increased by over 300% in the past year alone, and it’s now among the top 10 largest cryptocurrencies by market cap. This rapid price increase is largely attributed to TON’s listing on major exchanges such as OKX, KuCoin, Bitget, and more. Most recently, Toncoin was added to the Binance launchpool. These listings have made TON more accessible to the wider crypto community. 

🔥 Binance Launchpool & Super Earn event for #TON: $64M up for grabs 🔥

Following last week's $TON listing, @binance has unveiled its 1st-ever Binance Launchpool & Super Earn event for a mature ecosystem token.

Total rewards pool: 9M $TON 💎💰💸

Want to earn your share? 🧵⬇️ pic.twitter.com/MLRwgbX8Ga

— TON 💎 (@ton_blockchain) August 14, 2024

Additionally, Toncoin’s deepening integration with Telegram and the expanding ecosystem of projects on the TON network, such as the popular GameFi applications, have played a crucial role in its rising value. This year’s most anticipated airdrops from games like Hamster Kombat and TapSwap will take place on the TON blockchain. Recipients of these airdrop tokens will be able to exchange HMSTR and TAPS tokens with Toncoin. 

These factors and the increasing popularity of Telegram-based tap-to-earn games continue to influence Toncoin’s price. The growing number of large transactions and increased activity on the network indicate that institutional investors are also showing greater interest, contributing to the long-term bullish momentum.

Where to buy Toncoin? 

At the time of writing this article, Toncoin is available on 34 centralized exchanges. The most popular options are OKX, Bybit, Bitget, and KuCoin. Currently, the token’s largest daily transaction volume is on OKX and Bybit. 

Should I buy TonCoin? 

From a long-term perspective, Toncoin is likely a good investment. The large user base of Telegram and the growing popularity of tap-to-swap games will likely increase the utility of Toncoin. Also, listing on tier-1 exchanges like Binance and Coinbase could further drive its prices in the future. In the short term, Toncoin is a risky asset, much like other cryptocurrencies. Wider liquidations could hurt the token’s prices in a bear market.

So, it's critical to set expectations and understand your risk appetite before investing.