TON Deepdive

The Open Network, also known as TON, is a blockchain project led by its community, initially started by the creators of Telegram, the encrypted messaging service. TON aims to facilitate quick transactions and support massive sums of decentralized apps. 

Currently, TON is a robust blockchain infrastructure built to support the creation and operation of decentralized applications (dApps) and smart contracts. It’s based on a scalable multi-blockchain architecture that uses a proof-of-stake consensus mechanism, theoretically capable of supporting up to 2⁹² concurrent blockchains.

This is an overview of TON, and we will release a detailed report with more insights into TON and its ecosystem next week on Tuesday 14th in our alpha channel: https://t.me/SimplicityGroup 

TON Origin 

In 2017-2018, the team behind Telegram Messenger began exploring blockchain technology to support their large user base. Finding no existing blockchain that met their needs, they initiated the Telegram Open Network (TON), later launching a sale of Gram tokens (renamed Toncoin) in early 2018 to fund the development of TON and cover operational costs.

Long story short, after a few problems, it has evolved into a fully decentralized network that supports numerous decentralized apps and complex smart contracts. It also introduced a bridge to the Ethereum network, allowing its token, TON, to be traded in the Ethereum DeFi ecosystem as a wrapped version called wTON.

TON Tech stack

Scalability and Efficiency

TON achieves its scalability through sharding. This process involves dynamically splitting and merging blockchains to adapt to changing loads, ensuring that the speed of block generation remains consistent regardless of transaction volume. This feature helps avoid network congestion and keeps operational costs low even during demand spikes.

Data Exchange and Routing

TON features a hypercube routing system that ensures efficient communication between any two blockchains within the network. The time it takes to transfer data between chains grows logarithmically with the number of chains, allowing the network to scale to millions of chains without slowing down.

Consensus Mechanism

The network uses an advanced proof-of-stake protocol where validator nodes stake deposits as a form of reliability assurance. Consensus is achieved through a variant of the Byzantine fault tolerance protocol, optimizing resource use and focusing node computing power on processing transactions and executing smart contracts.

Network Structure

TON's structure includes a masterchain and numerous workchains, each capable of holding up to 2^32 workchains, each with their own specified rules. These rules cover aspects like account address formats, transaction protocols, and the virtual machines that execute smart contracts and manage basic cryptocurrency operations. While each workchain has its unique characteristics, they all integrate seamlessly within the broader TON ecosystem.

Governance

Governance on TON is decentralized, with changes to the network requiring approval from a majority of validators. These validators participate in governance through the proof-of-stake mechanism, voting on network modifications or updating their software to implement agreed changes.

Security

Security in the TON ecosystem is reinforced through partnerships with several Security Assurance Providers (SAPs) like Certik, Quantstamp, softstack (formerly known as Chainsulting), SlowMist, Hexens, Vidma, and Scalebit. These SAPs perform rigorous testing and quality assurance on the software developed for TON, enhancing overall network security and reliability.

Aspects on TON

TON has quite a lot of things covered as a comprehensive ecosystem, from a native token to domains to payments system.

Toncoin

Toncoin, formerly known as Gram, serves as the primary cryptocurrency of The Open Network (TON). It plays a crucial role in the ecosystem, being used for transaction fees, staking to secure the blockchain, influencing network development decisions, and covering gas payments for smart contract processing. Additionally, Toncoin facilitates payments within the network.

TON Proxy

TON Proxy is a native TON application, a network proxy and anonymizer layer designed to enhance privacy and resist censorship within the TON blockchain. It enables the creation of decentralized VPN services. This setup makes decentralized applications more resistant to censorship and promotes user privacy. Recently, TON Proxy was made compatible with HTTP Proxy to increase its utility.

TON DNS

Introduced by the TON Foundation, TON DNS makes the network more user-friendly by allowing ".ton" domain zones. This system assigns human-readable names to accounts, smart contracts, services, and nodes, simplifying user interaction by replacing complex alphanumeric strings with easy-to-remember names. These domain names can also be linked to wallet addresses, streamlining access to various network services.

TON Storage

Launched as a decentralized file storage system, TON Storage offers a distributed solution for storing and exchanging large data volumes. It uses peer-to-peer technology similar to torrents, combined with smart contracts to ensure reliability. 

TON Payments

TON Payments facilitates instant, off-chain value transfers among users, bots, and services within the TON ecosystem. Launched to offer a quick and secure alternative to traditional on-chain transactions, this system incorporates robust security measures to protect transfers, ensuring they maintain the same level of security as on-chain activities.

TON Mobile

TON Mobile gives users access to secure global connectivity through eSIMs available through their TON Mobile telegram bot. The feature is available in 70+ countries and users can pay with cryptocurrency or any bank card of their choice. 

TON Tribute

TON Tribute allows users to monetize their audiences on Telegram through paid subscriptions, donations, or digital products. TON charges a 10% transparent commission fee on all sales or subscriptions. Additionally, payouts occur twice a month and can be sent to bank accounts or two crypto wallets.

TON Fragment

TON Fragment is part of Telegram’s premium subscription provision. Users can use their crypto wallets to attain telegram premium through TON Fragment. Furthermore, it provides the ability to donate telegram premium to members of your telegram community. Additionally Telegram Fragment provides on-Telegram advertising for advertisers and ad rewards for content creators for broadcast channels on Telegram. 

TON Diamonds

TON Diamond is TON’s local marketplace and auction for digital art that unites a curated marketplace for digital artists and a DEX Aggregator. The platform is based on its own NFT collection and the governance token Glint Coin.

Getgems 

Getgems is an NFT marketplace of the open network blockchain where users can create, trade, and collect NFTs with ease. They offer a wide range of NFTs including the previously mentioned TON Diamonds’ collection.

TON Ecosystem

TON also has an ecosystem of dApps already, from DEXs to lending protocols to RWA exchanges. We are releasing a comprehensive report on TON and will dive into the ecosystem once we have more data. Stay tuned, the report is scheduled to come out on Tuesday 14th in our alpha channel: https://t.me/SimplicityGroup 

TON has grown rapidly this year as can be seen in the charts below, and as we’ll see by the current highlights below, it’s a journey going only up from here.

Highlights on TON

• Market Capitalization Achievement

Toncoin has recently surpassed Cardano in market capitalization, ranking it ninth among the largest cryptocurrencies, reaching a market cap of $23.2 billion. Toncoin showed its rapid growth, with its value rising more than 135% over the month leading up to this market cap reaching an all-time high of $7.08.

• Deeper Integration with Telegram and $8m Raise

TON is being integrated into Telegram for various functionalities. Users can now make payments in Toncoin (TON) for advertising and leave tips to channel administrators. In early March, TON received an $8 million investment from Mirana Ventures for the development of their Telegram Web3 SuperApp.

• User and Account Enhancements

Telegram users will soon be able to log into their accounts using cryptocurrency wallets, and there will be an option to register and possibly sell account names (1).

• Reduction of Transaction Fees

TON has announced significant reductions in transaction fees within its network, improving user engagement and transaction efficiency.

• Stablecoin Support and Incentives

TON now supports Tether’s USDT, the largest stablecoin by market capitalization, with initiatives to encourage its use within the network, including rewards for early users. According to a recent post, 11 million Toncoin (TON) have been allocated to reward early USDT users in the TON network.

• NFT and Cryptocurrency Functions

Telegram is introducing features where users can buy and sell stickers as NFTs, and sticker artists will receive a significant portion of the proceeds. Mini-applications within Telegram will allow content purchases with cryptocurrency.

TON Potential

Telegram is slowly becoming a "super app" similar to WeChat, leveraging TON and Tencent Cloud to enhance its app ecosystem. 

With the current on-TON developments like games, wallets, sellable domains, etc. and over 800 million active monthly users on Telegram, Telegram and TON are setting itself up for the run towards the world’s next Super-app/Everything-app. 

Moreover, the significant, tangible growth within the TON ecosystem suggests that users are actively engaging with its features—a rarity in the cryptocurrency domain. Numerous decentralized applications (dApps) on the TON blockchain are witnessing steady adoption, characterized by consistent growth rather than the sporadic surges of FOMO typically seen in the cryptocurrency dApp ecosystem.