What Is TON Blockchain? Should I Buy TON Token?

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29 Feb 2024

KEY TAKEAWAYS

TON Blockchain is designed for high scalability, aiming to process millions of transactions per second.
TON Blockchain employs a PoS consensus algorithm, enhancing security and efficiency.
TON open network offers a comprehensive ecosystem, including payment channels, storage solutions, privacy features (TON Proxy), decentralized domain naming (TON DNS), and more.

1. WHAT IS TON BLOCKCHAIN (THE OPEN NETWORK)?

What is TON blockchain? TON Blockchain is a Layer 1 blockchain utilizing the PoS consensus mechanism. It is also known as the open network ton. It serves as the centerpiece of the TON project mentioned by BeInCrypto. The TON blockchain focuses on enhancing security and upgrading its structure to process millions of transactions per second, addressing issues faced by other Layer 1 blockchains like Bitcoin and Ethereum.

What is TON blockchain? (Source: theblock101)

As mentioned earlier, TON blockchain is a combination of two different blockchains, aiming to serve regular users. It is designed to integrate seamlessly into a user-friendly application, allowing users to quickly buy, send, and store their cryptocurrencies.
Similar to many other blockchain ecosystems, TON relies on smart contracts to process online transactions swiftly. All smart contracts on the blockchain are executed by the TON Virtual Machine (TVM) developed by the project. TVM enables the deployment of complex smart contracts.

2. FEATURES OF TON BLOCKCHAIN

Allowing a Large Number of Concurrent Access: TON utilizes sharding, incorporating multiple shards on the same blockchain to quickly complete tasks. Each shard serves a specific purpose and works to prevent a large backlog of unverified blocks.
PoS Consensus Mechanism: TON's PoS consensus algorithm ensures the efficient operation of the blockchain.
Dedicated Virtual Machine Development: TON blockchain builds its own virtual machine called TVM, facilitating the fast and convenient processing of complex smart contracts.

In addition, TON also has prominent products and features, including:

TON Payment: This is a fast off-chain processing payment channel on the TON blockchain.
TON Storage: The platform operates much like Dropbox but with encrypted features, utilizing private keys on the user's wallet. This adds an additional layer of security for both personal and public storage.
TON Wallet: TON offers both custodial wallets (wallet with deposit) and operates with some non-custodial wallets (wallet without deposit) from third parties. Depending on the user's needs, they can choose a solution that suits them. There are two different custodial TON wallets,wallet for completing transactions via Telegram, and cryptobot for easy storage, transfer, or exchange of Toncoin for Telegram users.

3. BENEFITS OF TON BLOCKCHAIN

Benefits of TON Blockchain (source: traderviet.vn)

Enhanced Security and Performance: TON Blockchain focuses on improving security and enhancing performance, enabling the processing of millions of transactions per second.
Multi-Service Ecosystem: TON provides a multi-service ecosystem, including payment, storage, proxy, and various other features, creating a comprehensive and flexible platform.
Privacy and Safety: TON Blockchain ensures safe and private transactions for users while minimizing the risk of data breaches.
Fast and Efficient Payment Medium: TON Payments, a payment mechanism on the TON blockchain, is processed quickly and efficiently.
Integration of TVM Technology: TON utilizes the TON Virtual Machine (TVM) to deploy complex smart contracts, enhancing the platform's flexibility.

4. WHAT IS TON COIN (TON)?

TON Coin (TON) is the digital currency of the TON ecosystem, used to execute transactions and activities within the TON blockchain network. It plays a crucial role in facilitating transactions and payments on the platform, while also serving as a means of rewarding participants in the Proof-of-Stake (PoS) consensus process.

4.1. TON token price

The TON crypto price is about $2.15 today with a 24-hour trading volume of $33,658,249.63. This represents a 1.19% price increase in the last 24 hours and a -2.30% price decline in the past 7 days. TON Coin is valued at a market cap of $7,438,709,442.

CHECK THE TONCOIN PRICE TODAY

4.2. TON coin tokenomics

TON coin tokenomics for Telegram Open Network (TON) typically involves a restricted token supply used in transactions, staking for rewards, and network governance. Prior to investment decisions, it's crucial to understand the risks and opportunities by researching TON coin tokenomics.

TON coin tokenomics (Source: theblock101)

4.3. TON token allocation

TON does not follow a fixed allocation ratio like some other token projects. In the initial phase, 98.55% of the total TON token supply was distributed through mining (Proof of Work) to early supporters during the TON testnet phase. At that time, approximately 200,000 TON was mined per day. However, after 2 years, the project shifted to distribution through the Proof of Stake (PoS) mechanism. The transition marked a change in the token allocation strategy

There are some recommended TON wallets (Source: beincrypto)

4.4. TON Coin use cases

TON Coin has various use cases within the TON blockchain ecosystem. Some cases include:

Transaction Medium: TON Coin serves as a digital currency for transactions within the TON blockchain network. Users can use TON Coins to transfer value and make payments.
Proof-of-Stake Consensus: TON Coin plays a crucial role in the Proof-of-Stake consensus mechanism of the TON blockchain. Users who hold and stake TON Coins may participate in block validation and earn rewards.
Governance: TON Coin holders may participate in the governance of the TON blockchain by voting on proposals and protocol upgrades.
Incentives for Network Participants: Users and developers engaging with the TON ecosystem may receive TON Coins as incentives for various activities, fostering network participation.
Access to Services: TON Coin may be used as a utility token to access specific services within the TON ecosystem, such as decentralized applications (DApps) or premium features.

5. SHOULD I BUY TON?

TON Token Indexes by Klarda

In essence, no project can guarantee 100% safety or deliver high efficiency. However, in TON, there are some specific points that can support the development process of TON. Specifically:

TON has a fairly large community. As BeInCrypto mentioned earlier, behind TON is the Telegram messaging app, which currently has over 700 million users. In the crypto space, Telegram is an indispensable tool for communication. The TON Community on Telegram alone, at the time BeInCrypto wrote this article, had nearly 600,000 members. Thus, TON already has a potential customer base from this source.
While TON doesn't share much about the development team of the project, besides the Durov brothers, with what these two individuals have built from Telegram, it has somewhat demonstrated their capabilities. Telegram has operated for a long time without relying on public advertising activities like other platforms.
Moreover, Telegram itself has previously successfully introduced and sold TON to the community in 2017-2018, raising $1.7 billion. This could be a precedent for approaching and selling to users at the current time.
Technologically, TON is also competing to become a potential Layer 1 blockchain among countless existing solutions. In addition to fast block validation times, the blockchain offers advanced features to enhance scalability, such as sharding support.

With these perspectives, we can see that TON has the potential to become a project worth considering and investing in at the current time. However, to minimize unexpected risks in the future, it is also advisable to prepare specific contingency plans.

6. HOW TO BUY TON COIN?

There are three ways for users to own Toncoin. Specifically:

Direct Purchase on Exchanges: Users can buy Toncoin directly on various exchanges mentioned above. They can purchase it using other cryptocurrencies such as USDT, BTC, or ETH.
Become a Validator: Users have the option to earn Toncoin by becoming a validator. This involves staking TON tokens in the network and receiving rewards.
Become a Nominator: Users can also earn TON by participating in activities within existing staking pools. This is done by becoming a nominator.

So, we've explored "What is TON Blockchain?" from various perspectives. Are you ready to delve deeper into "What is TON?" or not yet?