Will TON, backed by Telegram's 900 million users, bring innovation to the blockchain industry?

TON is Not Just a Cryptocurrency

Have you heard of a project called The Open Network (TON)? This network, also known as Toncoin in the blockchain world, is currently attracting significant attention.

Why is that? Because it is directly connected to Telegram, one of the world’s largest messaging apps. Telegram has approximately 900 million users. This enormous user base is attempting to solve the problem of “complexity,” which has been a major obstacle to the widespread adoption of cryptocurrencies.

TON’s vision is clear. Traditional blockchains have remained complex systems mainly for technical users. However, with TON, you can handle cryptocurrencies in the same way as sending a message. It represents true democratization of blockchain technology.

Outperforming Existing Networks in Processing Power

When discussing blockchains, scalability is an unavoidable issue.

Bitcoin processes about 7 transactions per second, and even Ethereum only manages around 15 to 30 transactions per second at best. Meanwhile, what about TON? Theoretically, it has the capacity to handle millions of transactions per second.

Where does this overwhelming difference come from? The answer lies in an innovative technology called “Infinite Sharding.”

Conventional blockchains process all transactions through a single processing path. TON, on the other hand, automatically increases processing routes based on network load. Imagine a highway that adds lanes during traffic congestion. It can create up to 232 workchains, with an additional 260 shard chains underneath. This hierarchical structure enables, in theory, unlimited scalability.

And transaction fees. While Ethereum’s fees can spike to several tens of thousands of yen during congestion, TON maintains fees below 1 cent at all times. This stability paves the way for everyday payment infrastructure.

The Revolution Brought by Telegram Integration

Since September 2023, TON has been officially adopted as Telegram’s Web3 infrastructure. Understanding the significance of this event is key to understanding TON.

Complex cryptographic addresses have disappeared. Instead, a human-readable name called “TON DNS” has appeared. With usernames like @user, users can send funds without confusion. The nightmare of sending to the wrong address is greatly reduced.

Toncoin is now also used for payments within Telegram Premium. This is symbolic. The 900 million daily users are naturally beginning to interact with cryptocurrencies. No more complicated exchange registrations or wallet setups are necessary. The era has arrived where you can transfer assets as easily as opening a messaging app.

Advanced Technical Specifications

Delving into TON’s technical stack reveals its underlying design philosophy.

TVM (TON Virtual Machine) supports flexible computations of 64-bit, 128-bit, and 256-bit. Overflow detection is automatic. Thanks to an efficient cell-based data structure, complex programs can be implemented with lightweight code.

Hypercube Routing delivers messages between different shard chains in about 5 seconds. This is a revolutionary speed compared to traditional cross-chain communication.

There is also an unfamiliar concept called Self-Healing Vertical Blockchain. Simply put, it allows local corrections without forking the entire network when errors occur. This significantly enhances network robustness.

The consensus mechanism combines PoS (Proof of Stake) with Byzantine fault tolerance. Validators stake tokens to participate in validation and earn rewards. Penalties are immediately applied for malicious behavior. This design integrates economic incentives with security.

Precise Token Economics

Understanding Toncoin’s supply mechanism is crucial for assessing the project’s sustainability.

The maximum supply is fixed at 5 billion TON. It cannot be changed. Currently, about 2.41762 billion TON (circulating rate 46.94%) are in circulation. The remaining tokens will be gradually distributed over decades as validator rewards. The annual inflation rate is kept around 2%.

The validator reward system is intriguing. It is designed assuming about 10% of the total supply is staked, and validators who perform honest validation receive an annual return of approximately 20%. Conversely, continued misconduct or offline status results in some staked tokens being burned.

The deflationary mechanisms are also clever. They include burning tokens from malicious validators, ongoing consumption via storage fees for smart contracts, and automatic deletion of frozen accounts. These multiple pressures counteract inflation and maintain long-term scarcity.

A notable feature is the creativity of storage fees. Unlike Ethereum, where storage costs after deployment are effectively free, TON imposes ongoing costs. This prevents unnecessary data accumulation and helps control blockchain bloat.

Building an Economy with Diverse Applications

Toncoin functions as a utility token with a wide range of uses.

Primarily, it is used for gas fees. All operations on TON—sending funds, executing smart contracts—require Toncoin. Its predictability and low cost encourage frequent use.

Staking by validators is central to network security. Participation requires locking tokens, which temporarily removes them from the supply market and influences market dynamics.

Cross-shard communication is also paid for with Toncoin. Validators receive fees at each relay point in hypercube routing. Market-driven efficiency naturally emerges.

Ecosystem services like TON DNS registration, TON Storage (file hosting), and TON Proxy (anonymous networking) are all built on Toncoin. Users are freed from managing multiple tokens.

Governance voting rights are included. Token holders can directly participate in protocol upgrades and parameter changes through a democratic process.

Grand Ambitions for 2028

The TON team has ambitious goals. They aim to onboard 500 million Web3 users by 2028.

This exceeds the current total number of cryptocurrency users by a large margin. However, considering Telegram’s 900 million user base, it is not an unrealistic target. It can be seen as a pragmatic goal.

Technologically, they plan to increase processing capacity to several million TPS (transactions per second) and aim to become a truly global payment infrastructure.

Expanding the developer ecosystem is also a priority. The new smart contract language combines familiar Java-like syntax with Haskell’s functional programming and ML’s type safety, making it easier for more developers to build on TON.

Development of cross-chain bridges between major blockchains like Ethereum and Bitcoin is progressing steadily. By enabling interoperability, TON is on a path to becoming not just an independent network but a blockchain hub.

Implementation of zero-knowledge proofs (zk-SNARKs) is also planned, aiming to balance privacy and scalability. Private transactions and batch processing will be further optimized, enhancing efficiency.

Strategic Expansion into Emerging Markets

TON’s growth strategy is deliberately tilted toward emerging markets.

While smartphone penetration is high, opening bank accounts is often difficult in these regions. For such populations, the financial services enabled by TON’s Telegram integration offer immense value. They eliminate the need to wait for traditional financial infrastructure.

Integrating directly with local fiat currencies is also a key initiative. Systems are being developed to allow direct exchange from local currencies to Toncoin, bypassing complex exchange processes.

Active efforts are underway to respond to regulations through regional partnerships. The TON Foundation grants program supports application development in fields like gaming, social media, and finance, fostering thousands of projects.

Educational initiatives are also in progress. They aim to expand the developer community through knowledge dissemination and tool development.

The Future Vision Demonstrated by TON

In conclusion, what TON (The Open Network) symbolizes is one possible future for blockchain technology.

It is not just a speculative asset but is steadily progressing as a practical infrastructure. The combination of Telegram’s 900 million users, infinite sharding technology, and a design focused on usability suggests that the true democratization of blockchain could be within reach.

This project, with its innovative technology and market feasibility, is rare. Watching its development is certainly worthwhile.