The cryptocurrency world is developing rapidly and new projects attract the attention of investors every day. One of the cryptocurrency projects that is frequently heard of is Toncoin, launched by Telegram, which has millions of users around the world. So, what is Toncoin and why does it attract so much attention?
Toncoin is an innovative cryptocurrency project that aims to create a secure and scalable blockchain platform. Toncoin, which provides great advantages to its users by offering fast transaction times and low costs, aims to play an important role in the digital economy of the future. If you want to learn more about this exciting project, you are in the right place. Read on to discover what you want to know about the innovations and potential advantages that Toncoin offers.
What is Toncoin Project?
Toncoin, or more commonly known as TON, is a layer-1 project that emerged with the initiative of the world-famous messaging application Telegram. Although it was initially introduced as “ Telegram Open Network ”, Telegram’s step back brought with it some changes. The previous name of TON, the local cryptocurrency of this project with its own network, was known as Gram.
Toncoin is designed as a distributed supercomputer or superserver that aims to provide a variety of products and services that will contribute to the development of the decentralized vision for a new generation of internet life. The Toncoin project is a community-driven blockchain with a flexible architecture and focused on serving the consumer.
One of Toncoin’s main goals is to improve transaction processes. In fact, Toncoin’s initial idea in this regard was to integrate Toncoin into an easy-to-use application that allows users to buy, send, store funds. Thanks to the Toncoin project, which has achieved this today, cryptocurrency buying, selling and transfer transactions can be carried out using the Telegram application.
With Toncoin serving as the primary cryptocurrency, the network prioritizes efficiency, ensuring transaction fees are both minimal and aid in optimal network operations. In addition to this transactional framework, the Toncoin network has made significant strides in offering decentralized storage capabilities, emphasizing security and functionality in equal measure.
In fact, when you look at the website of this project, it is mentioned that thanks to the platform, users are offered fast, transparent and secure payment services, and transactions are easily carried out with minimum fees and through third-party applications.
In the focus of developers; Creating a full-fledged ecosystem with decentralized storage, decentralized services, domain name system (DNS equivalent), an anonymous network, instant payment platform, and affordable/fast transaction processing.
All these details, “What is the Toncoin project?” It provides a framework to answer the question. In this article, where you can find more details about TON coin, we will be touching on its different aspects.
What is TON Coin?
TON is the native cryptocurrency of the Toncoin project. Network operations built on Toncoin are used for transactions, games and collectibles. Additionally, TON coin is used to pay transaction fees, participate in governance processes, and staking transactions. “How much is the supply of TON coins?” When looked at, this figure is seen as 5,109,146,236 at the time this article was written. This number may change in the future. Toncoin, which has an extremely competitive attitude compared to its market value, performs at the forefront. So what does TON do?
General usage areas for TON coin are as follows;
- Transaction fee for smart contract transactions,
- Inter-chain transfer fees,
- Amounts staked by validators to protect the blockchain,
- Payment services provided by applications built on the platform,
- Toncoin is an integral part of TON’s on-chain governance program,
- Payment for TON Proxy,
- Contributing to network security through staking,
- Payment for blockchain-based domain names (DNS),
- Payment for decentralized data storage.
“What is a ton coin?” After answering the question, we can now discuss other details about this project.
What is TON Storage?
It works similarly to traditional file sharing services (e.g. Dropbox) but prioritizes privacy and security by offering features such as private encryption.
What is TON Proxy?
TON Proxy enables users to access the TON blockchain via decentralized networks. It is a tool that allows network participants to avoid censorship and fully maintain their anonymity.
What is Tone Wallet?
The Tone wallet mediates the storage, receipt and sending of cryptocurrencies on the TON blockchain. If there is an existing wallet, it can be imported with one click. To use the Tone ecosystem, there are also different wallets that will work integrated with TON. Different choices can be made between these wallets depending on the transaction you want to perform.
What are the Advantages of Toncoin?
The main advantages that make the Toncoin project stand out in the cryptocurrency world and attract the attention of users are as follows:
- High Speed: With a remarkable achievement, as of September 2021, the network reached a staggering 55,000 TPS. In the following periods, it reached up to 104,715 TPS, an ambitious figure among blockchains.
- Innovative Structure: The Toncoin network operates on a multi-layered model based on the principle of sharding, often described as a “blockchain within a blockchain”. This structure helps prevent the accumulation of unverified blocks and facilitates faster transactions.
- Cryptocurrency Transactions: Cryptocurrency buying and selling transactions can be carried out via Telegram. You can even use a credit card for purchases.
- Cryptocurrency Mining: If desired, users can create their own cryptocurrency with just a few clicks.
- Contact: If you have an eSIM compatible phone, an eSIM can be purchased through the Telegram application. A SIM from the destination country can then be inserted and you can easily stay connected while in a foreign country.
- Broad Scope of Services: The Toncoin ecosystem has a multitude of services, from Toncoin wallets that cater to different user preferences to Toncoin services that provide a platform for developers to create dApps.
- Payment Option: Payments can be easily sent or received via Telegram.
- Domain Name: Toncoin domains are just like Ethereum Name Service (ENS). Thus, payments can be easily received or sent by choosing a website domain instead of using the entire alphanumeric wallet address. These domains can be purchased within the TON network.
- PoS Consensus Mechanism: Adopting the Proof of Stake consensus mechanism ensures that transaction verification is both fast and effective. Vital to this process, validators and nominators strengthen network security by working within the boundaries of smart contracts. Moreover, all this runs smoothly under the TON Virtual Machine (TVM).
How Does Toncoin Work?
Toncoin uses the proof-of-stake (PoS) consensus model for network scalability and reliability. TON has a level structure built on the principle of sharding or segmentation (blockchain within a blockchain). Thanks to its sharding feature, it uses multiple subnets in the same blockchain, where each shard has a specific purpose. It allows the network to prevent the accumulation of unverified blocks and speeds up tasks.
The main factor in reaching high levels of verification and processing speed is the good interaction between segments. In this way, very large amounts of TPS can be verified and processed.
Smart contracts in the Toncoin project are executed on a special platform called the TON Virtual Machine. Designed for efficiency and easy application.
How to Mine TON Coin?
Toncoin was a digital asset that could be mined for cryptocurrency in the early days.
You may be interested in: What is Cryptocurrency Mining
Today, TON coin mining has ended. The TON coin mining process, which started in June 2020, continued until June 28, 2022. During this time period, users were mining approximately 200,000 TONs per day. During the period of TON mining, the Initial Proof of Work system, which was a mixture of Proof of Work and Proof of Stake, was used. In fact, Toncoin was the first company to use this system.
The withdrawal of the Telegram team from the Toncoin project ended the current mining process. After this stage, Infinity TON Mining Pool was introduced to those who wanted to continue the mining process. This method is pool mining and involves mining Ethereum or another cryptocurrency and then converting it into TON. In fact, it is a stake-based system and its use has ended today.
Today, the staking process is carried out with the open source decentralized TON pool. A Proof of Stake consensus is in operation, where those who verify blocks and contribute to network security receive rewards. Those who do not want to become validators can also participate in the staking process by lending their assets to validators. Those who want to become validators must have high-performance hardware and have a large amount of TON with them. Those who start as validators receive back the TON they have locked after the verification round is completed, along with the reward given to them for their contribution.
Who is the Founder of Toncoin?
The founders of the Toncoin project are known as Nikolai Durov and Pavel Durov. The Durov brothers were also the founders of Telegram, and considering this, the Toncoin project was initiated by Telegram.
“When was Toncoin released?” If we look at it, the calendar takes us to 2018. Toncoin was first called GRAM. The project was abandoned by Telegram after legal processes with the SEC. The name change in the Toncoin project also took place during this process. The project, which started with the name ” Telegram Open Network “, continues its path only as ” The Open Network ” after Telegram’s withdrawal. The Toncoin project was taken over by the TON Foundation after the events on the SEC side and is continued today by independent developers under this foundation.
What is the Future of Toncoin?
Toncoin continues to exist as one of the leading projects in the market when evaluated in terms of market value. The launch of the project by Telegram was a strong factor in its appreciation. The abandonment of the project by Telegram in the following periods did not destroy it. In fact, the TON Foundation ‘s takeover of the project helped move it even further.
In the future, increasing the number of developers on the project and bringing new and existing solutions forward may help the Toncoin project to get even better.
The Telegram partnership with the TON Foundation is one of the key reasons for Toncoin’s recent bullish rally. So establishing an integration between Toncoin and Telegram is a strong indication that the project is still being moved forward.
With nearly 1 billion active users, Telegram represents a key channel for the mass adoption and distribution of Toncoin. Toncoin’s exposure to this growing Telegram user base could help see a gradual increase in adoption and activity on the TON blockchain over time.
How to Buy Toncoin (TON)?
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