Introduction to TON Blockchain for Beginners —Will Ton Surpass Bitcoin?
Several Blockchains with unique features have emerged since Bitcoin was created by Satoshi Nakamoto and launched in 2009. In today’s blockchain battle for supremacy, TON Blockchain is among the several blockchains taking centre stage.
As a crypto native, understanding the dynamics of the Ton Blockchain is Important as it enables you to conduct transactions smoothly.
Let’s start with the question everyone keeps asking,
What is the Full Meaning of Ton?
TON is an acronym for The Telegram Open Network, which is known as The Open Network by several crypto enthusiasts. It was first called the Telegram open network because it was founded by Telegram cofounders Nikolai and Pavel Durov. When regulations became a challenge, Ton was taken over by independent developers under the Ton Foundation.
History And Background of The Open Network (TON)
Ton started as an idea for two brothers, Nikolai and Pavel Durov, and was developed by a Telegram team of developers. Not long after the project came alive, it was severely hit with regulatory issues, causing the Security Exchange Commission (SEC) to interfere. The problems surfaced when they made their plan to launch a native on-chain Gram Token public. Since these gram Tokens were considered security, they fell under the jurisdiction of the U.S. Security and Exchange Commission.
Fed up with all the limitations and legal drama, Pavel Durov ditched the project in 2020. In the same year, it was handed over to Independent developers who were community members. The new people to assume leadership roles were Anatoliy Makosov and Kirill Emelianenko. These two, and several others, continued Ton’s development under the Ton Foundation.
Technical Overview of Ton Blockchain
The technical overview of the Ton Blockchain involves the underlying architecture of the Ton ecosystem. Let me first give a thorough breakdown of the Ton ecosystem.
The architecture of Ton Coin is like the blueprint of a highly efficient and secure system. It's designed to handle many transactions quickly and securely, similar to how a well-built structure can accommodate many people without feeling overcrowded.
Think of Ton Blockchain as a modern city with multiple lanes of traffic, well-planned roads, and efficient transportation systems. The Ton Coin's architecture ensures that transactions flow smoothly, like traffic moving seamlessly through a well-designed city, without congestion or delays. This architecture also incorporates advanced security measures, like having vigilant security guards throughout the city to ensure the safety of everyone and everything within it.
Similarly, the Ton Coin employs robust security protocols to protect transactions and prevent unauthorised access to the network.
In essence, the architectural design of the Ton Coin points towards creating a fast, reliable, and secure platform for conducting transactions and interacting with decentralised applications, making it a trustworthy and efficient digital infrastructure.
Key Features of Ton Blockchain
To properly understand Ton, it’s best to see it as a collection of Blockchains, all functioning together. Since Bitcoin launched in 2009, no blockchain has been able to process millions of transactions per second. Before we go into the core features of Ton Blockchain, let’s look at its general features.
Decentralisation: Ton Coin operates on a decentralised network, meaning no central authority or controlling entity exists. Instead, transactions are verified and recorded by a network of computers, known as nodes, spread across the globe. This decentralisation ensures that no single entity controls the currency, making it resistant to censorship and manipulation.
Transparency: Every Ton Coin transaction is recorded on a blockchain public ledger. This ledger is accessible to anyone and can be viewed in real time. This transparency ensures that all transactions are traceable and verifiable, promoting trust and accountability within the network.
Security: Ton Coin utilises advanced cryptographic techniques to secure transactions and protect the integrity of the network. The sender cryptographically signs each transaction, ensuring only the intended recipient can access the funds. Additionally, the decentralised nature of the network makes it highly resistant to hacking and cyber attacks, as there is no central point of failure.
Low Transaction Fees: Unlike traditional banking systems, which often charge high fees for transferring money, Ton Coin transactions typically incur low or minimal fees. This is because no intermediaries are involved in the process, reducing overhead costs and allowing users to send funds directly to each other at a lower price.
Borderless Transactions: Ton Coin transcends geographical boundaries, allowing users to send and receive funds from anywhere in the world instantly and securely. This benefits individuals and businesses engaged in international trade or remittances, eliminating the need for costly currency conversion and cross-border transaction fees.
Ton Blockchain Explained– Core Features Of Ton
As said earlier, Ton can achieve magnificent transaction speed, up to millions of transactions in a second. This is so because of how Ton is structured, which incorporates multiple work chains. The Ton Ecosystem is divided into three parts: the master chain, the work chains, and the Shard Chains.
We will look into this one after the other.
The TON Master Chain
The master chain is the primary blockchain in the TON (Telegram Open Network) protocol. It contains general information about the protocol, including parameters, validators, active work chains, and hashes of the most recent blocks of all work chains and shard chains. It's more like a central database that stores all information about the health and functionality of the entire Ton Network.
The TON Workchains
Ton work chains are the engines of the protocol. They are individual blockchains (up to 231) within the TON protocol that handle different tasks like value transfer and smart-contract transactions. Each work chain may have different rules, formats of account addresses, transactions, virtual machines for smart contracts, and primary Cryptocurrencies since they all have unique purposes. However, they must satisfy the underlying interoperability criteria to enable interaction between other work chains.
Ton Shardchains
Ton Shard Chains are subdivisions of workchains responsible for handling a subset of accounts. Each workchain can be subdivided into up to 260 shard blockchains. Shard chains share the same rules and block format as their parent work chain but are responsible for processing transactions for specific accounts. For example, within the financial work chain, shard chains would be dedicated to processing transactions for accounts starting with specific digits of their addresses. Let's say one shard chain might handle transactions for accounts beginning with "1" while another handles those starting with "2".
Sharding is a technique used to improve scalability in blockchain networks by partitioning the network into smaller, more manageable parts called shards. In the TON Blockchain, sharding is built into the system, with each work chain being subdivided into shard blockchains. Hence, you are right if you call Ton a blockchain of networks because, in the TON Blockchain, each block in a shard chain (and in the master chain) is not just a block but a small blockchain itself. Each shard chain operates as a blockchain of blockchains or a 2D blockchain. The design allows for greater flexibility and efficiency in managing transactions and resolving issues with invalid blocks without causing an actual fork for all shard chains.
Ton Blockchain Consensus Mechanism
The TON blockchain uses a PoS (Proof of Stake) system, where validators play a crucial role. There are over 100 validators globally, most of which are private. To support the TON blockchain's health, TON coin holders can give their coins to validators and earn staking rewards. Currently, staking rewards on TON is around 13% annually, and platforms like TonStake.com let users stake their TON to validators and earn Ton staking rewards after one year.
In the TON blockchain, validators are vital players who propose and verify new blocks of transactions. Other significant roles include Fishermen, who watch for suspicious activity; Nominators, who support validators; and Collators, who help create new blocks. These roles work together to maintain the TON blockchain's security and functionality.
Ton Blockchain Governance Model
In TON, necessary settings like how nodes operate are controlled by special smart contracts, not hardcoded like in older blockchains. This allows for more flexibility and transparency. The key agreements governing this process include Elector, Config, and DNS. Additional contracts like Minter may be added in the future. This setup ensures TON's governance is transparent and can adapt to changes in the network.
TON Elector
The Elector smart contract is a vital component of the TON blockchain and manages critical aspects of the network's governance. First of all, it oversees the selection of validators. Individuals who wish to become validators submit applications to the Elector, detailing their qualifications and staking a certain amount of TON. The Elector evaluates these applications and decides which candidates will serve as validators based on their stake and other factors.
The Elector plays another crucial role in maintaining the integrity of the network. Anyone can report this to the Elector if a validator is suspected of misbehaviour, such as failing to create blocks or acting dishonestly. The Elector then facilitates a voting process among validators to determine the validity of the complaint. If the complaint is upheld, fines may be imposed on the offending validator.
Also, the Elector handles the distribution of rewards to validators. After each validation round, it ensures that validators are compensated appropriately for their contributions to the network.
TON Config
The Config smart contract is essential to the TON blockchain, as it manages configuration parameters and facilitates governance processes. One of its primary functions is to handle updates to the validator set. When notified by the Elector contract of a new set of validators, Config updates the network's configuration accordingly. During TickTock transactions, Config checks if it's time to apply the new validator set and moves the previous set to storage while updating the current set.
Another vital role of Config is managing proposals and voting on configuration parameter changes. Anyone can propose changes by submitting messages to Config; validators can vote on these proposals. If a proposal receives enough votes, it may be accepted or rejected based on predefined criteria.
Also, Config oversees emergency updates to configuration parameters when traditional voting mechanisms are impractical. Validators can vote to assign a unique key for emergency updates, allowing temporary parameter adjustments to address urgent issues.
These temporary emergency updates are expected to be phased out as the network matures. Throughout its history, the emergency key has been used several times to address critical issues, such as insufficient gas limits for conducting elections or technical problems with signature verification. These updates ensure the smooth functioning of the TON blockchain until more permanent solutions can be implemented.
TON vs Bitcoin and Other Blockchains
When comparing Toncoin and Bitcoin or Ton Vs other blockchains, there are vital factors to consider. Among these factors are;
Scalability: Toncoin has an advantage over Bitcoin in scalability, capable of handling more transactions per second. This scalability could lead to broader adoption for Toncoin as it accommodates more users and transactions.
Security: Both Toncoin and Bitcoin prioritise security using advanced cryptographic techniques. However, Bitcoin's longer track record and extensive testing make it a more established and secure option than Toncoin.
Adoption: Bitcoin is the most widely adopted cryptocurrency globally, with many businesses accepting it as payment. Toncoin is newer and has yet to reach the same level of adoption as Bitcoin.
Investment Potential: Bitcoin offers a less risky option due to its more extended history and established reputation. Toncoin, being newer, carries more risk but also has the potential for rapid value growth if it gains widespread adoption. As we know, the greater the risk, the more rewards there are.
Comparing Ton Coin to Bitcoin or comparing Ton Coin to other Cryptos is technical. All blockchains have unique features, such as scalability and faster transactions. Hence, depending on your priorities, you should choose blockchains with features that best match your goals.
Use Cases and Applications of Ton Blockchain
TON Blockchain offers multifaceted utility across various sectors. From TON’s growth statistics to its utility adoption, Ton will likely rival top blockchains. Here are some of the top utilities for Ton Blockchain.
TON Gaming
The TON blockchain is an excellent asset for gaming. Leveraging TON's speed, game developers can create intricate in-game economies and customised work chains, enhancing gameplay while minimising fees.
TON Commerce and Transactions
Financial Transactions and Payment Solutions
TON facilitates swift and cost-effective global transactions, potentially revolutionising remittances, payroll processing, and e-commerce, fostering financial inclusivity.
TON and Decentralized Exchanges (DEXs) & DeFi
TON's transaction speed enables decentralised trading, reducing slippage and promoting market stability for all participants.
TON for Supply Chain Management
TON's infrastructure enhances supply chain transparency and efficiency, reducing costs and ensuring product authenticity, which is particularly beneficial for pharmaceutical industries.
TON for IoT Networks
TON's speed makes it ideal for managing IoT networks, facilitating seamless machine-to-machine communication for smarter cities and more responsive energy grids.
TON Blockchain Development and Roadmap
TON Payment Channels
Ton is made to support payment channels for unlimited instantaneous reflection of payments without gas or high transaction fees. What remains subject to network fees is the creation and closure of the payment channel.
Pre-Ton Payment Network
At this stage, TON users can set up channels for payment using one intermediate node. It allows micro-payment transactions between participants without the need for new channels.
TON Payment Networks
At this point, several other intermediate nodes are now supported instead of one. All participants enjoy the freedom of launching an intermediate node, charging little transaction fees on every transfer that occurs on the node.
Security and Privacy on Ton Blockchain
The TON blockchain, developed by the TON Foundation, has recently unveiled a groundbreaking feature: on-chain encrypted messaging. This feature empowers users to send private messages securely within the network, marking a significant leap forward in communication privacy.
Previously, TON blockchain users could only post public, unencrypted messages on-chain. However, with the introduction of encrypted messaging, users can now send securely encrypted and readable messages only to the intended recipient.
Anatoly Makosov, a core developer of TON, highlights the personalised touch encrypted messaging brings to transactions. Users can now include custom messages like "for coffee" or "happy birthday" when sending Toncoin, Jettons, or NFTs, enriching the user experience. Makosov also emphasised the invaluable nature of encrypted messaging in scenarios where traditional messenger servers falter. He describes it as a reliable and safeguarded communication method, ensuring users can communicate privately and securely even during catastrophic events.
Encrypted messaging is now accessible through retail wallet apps such as MyTonWallet, OpenMask, and TON Wallet. The TON Foundation plans to integrate this feature into the mobile wallet application Tonkeeper in future updates, expanding the reach of secure messaging functionality. Introducing on-chain encrypted messaging aligns with the TON Foundation's mission to foster application development on its network. In May, the foundation launched a $25 million accelerator program to incentivise app developers to create innovative solutions on the TON blockchain. Additionally, an independent development team created a Telegram trading bot in November to streamline user onboarding to the TON ecosystem.
With this new feature, TON blockchain users can enjoy heightened privacy, personalisation, and security in their messaging interactions.
TON Coin - The Native Currency For Ton Blockchain and Ecosystem.
Like we have several countries with independent currencies, so do we have different t blockchains with native currencies.
Ton coin is the native currency of the Telegram Open Network, and it is used for rewards, staking, and mining activities.
Challenges of Ton Blockchain and Future Prospects
The TON blockchain is known for its tech and integration with Telegram for mass adoption. Yet, it needs help with liquidity problems. The system only has $2.7 million in bridged stable coins, limiting its DeFi and innovation potential.
In the past, TON's stablecoins were mainly used for trading purposes, but rest} gently, with the introduction of Storm Trade's main net on TON, the landscape has expanded. Now, traders have opportunities for trading and liquidity providers can earn annual yields of up to 30–40% in stablecoins. Additionally, the platform provides strategies for hedging long positions in Toncoin.
Despite these strides, the upcoming launch of new applications could exacerbate liquidity issues, potentially stalling TON's growth. Liquid staking derivatives such as Tonstakers, Bemo Finance, Hipo Finance, and the lending protocol EVAA are also affected by the liquidity shortage despite their role in injecting liquidity into the market. There is a need for urgent solutions to tackle these liquidity challenges.
Subjectively, most of these issues created by liquidity shortages can be solved if they pursue their stablecoin.
You can read TON White paper here
Visit Ton’s Official Website here
Conclusion.
Telegram is one of many social applications that pursued a decentralised currency or blockchain. In the past, Facebook, owned by Mark Zuckerberg, began developing the Facebook Diem cryptocurrency and Libra wallet, even though that project never saw daylight. If you look at it from that perspective, TON is the most established social media currency.
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