TON Coin In-Depth Analysis: Why Was the 5th Generation Blockchain Chosen by Telegram? A Comprehensive Overview of Technology, Ecosystem, and Token Value

Why Is the Open Network So Popular? Starting from Telegram’s 900 Million Users

The behind-the-scenes reason for The Open Network (TON) going viral is an underestimated technological logic. This project, positioned as the “Fifth Generation Blockchain,” is not just riding a new concept wave but genuinely solving core pain points that have troubled the crypto world for years through architectural innovation.

Particularly noteworthy is that in 2023, TON was officially adopted by Telegram as a Web3 infrastructure. What does this mean? It means that Telegram’s 900 million users worldwide can initiate encrypted transactions just like sending messages. This is not just a marketing gimmick; it’s a thorough solution to distribution issues—no matter how advanced the public chain technology is, it pales in comparison due to user base limitations. But TON is different; it naturally connects to a mature, active, and globally distributed user pool.

By early 2026, TON’s circulating supply reached 2.41 billion tokens, with a market cap of $42.5 billion and a 24-hour trading volume of $1.85 million. From cold start to its current scale, this chain is testing a hypothesis: a truly mainstream blockchain must possess both technical robustness and user-friendliness.

The “Three Dilemmas” of Blockchain and How TON Breaks Through

Bitcoin processes 7 transactions per second, Ethereum 15-30—this has become a market consensus. But real-world applications, from payments to gaming, require processing capabilities of thousands or even millions of transactions per second. This is the famous “Blockchain Trilemma”—scalability, security, and decentralization—seemingly impossible to have all at once.

TON’s solution is called “Infinite Sharding.” It sounds theoretical, but the actual logic is simple: treat each account as an independent blockchain, then organize these “account chains” into sharded chains that can process transactions in parallel, supporting up to 2^60 shards. This way, the network’s processing capacity grows linearly with the number of shards.

In plain language: Ethereum is like a congested toll booth on a highway—getting more traffic makes it more expensive; TON is like an auto-scaling hub port—more incoming vehicles mean more channels opened.

More importantly, this mechanism does not sacrifice decentralization. Through “Supercube Routing,” messages between different shards can cross within a single block cycle (about 5 seconds), with astonishing speed.

Telegram Was Once Suppressed by Regulations, but the Community Resurrected It

In 2018, Telegram founder Pavel Durov and his brother Nikolai launched the Telegram Open Network project, raising $1.7 billion to build a blockchain infrastructure for Telegram. But in 2019, the SEC issued an injunction, deeming the GRAM token sale illegal securities, forcing Telegram to withdraw in 2020, losing $1.2 billion.

What seemed like a dead project saw a turnaround in 2021. Community organizers Anatoly Makosov and Kirill Emelyanov established the TON Foundation, took over the open-source code, renamed the token to Toncoin, and continued development. In September 2023, Pavel Durov publicly stated this was “the continuation of our vision,” and Telegram officially adopted TON as a Web3 infrastructure.

From being suppressed by regulation to community-led revival, and from darkness to official recognition, TON’s resurgence story embodies the spirit of Web3.

Why Is TON Technologically Strong? Six Core Features Revealed

1. Dynamic Sharding System
The main chain can dynamically split into up to 2^60 shard chains based on network load. It automatically scales during high load and remains lean during normal times. This kind of “elasticity” is rare in the blockchain world.

2. Supercube Routing
Cross-shard messages no longer pass through a central hub but propagate via the optimal path in a supercube network topology. Cross-chain communication can be completed within a single block cycle, achieving “quasi-instant” transfer.

3. Advanced TON Virtual Machine (TVM)
Supports 64-bit, 128-bit, 256-bit arithmetic operations, with built-in overflow checks. It uses a “unit” architecture (each unit up to 128 bytes of data + 4 references) to flexibly represent complex data structures. Designed for complex smart contracts.

4. Vertical Blockchain Mechanism
Invalid blocks do not create permanent forks but are corrected through extension. Each block is essentially a small vertical blockchain; errors can be “rolled back and fixed,” maintaining network integrity.

5. Byzantine Fault Tolerant Proof of Stake (PoS)
Modified PoS consensus where validators stake TON to participate in block creation. Misbehavior results in token slashing (destruction). Economic incentives ensure security.

6. Seamless Integration with Telegram
This is not just a technical feature but an ecosystem advantage. The 9 hundred million users can access blockchain via the familiar Telegram interface, using readable TON DNS addresses instead of cryptographic addresses.

What Does the Current TON Ecosystem Look Like?

Payments and Consumption
Telegram Premium can be paid with TON; ad platforms, username auctions, and Fragment are already live. These are real traffic applications, not just proof-of-concept.

Decentralized Finance
DEXs like STON.fi have processed hundreds of millions of transactions, with low fees and fast settlement as standard. Compared to Ethereum’s hundreds of dollars in gas fees, TON’s minimal costs are a real competitive advantage.

Gaming and NFTs
High throughput supports complex game logic; true ownership of NFTs is no longer just a slogan. These would be impossible on Ethereum due to high fees.

Infrastructure Services
TON DNS has registered over 50,000 .ton domains; TON Storage offers decentralized storage; TON Proxy provides privacy network access. All these require TON tokens for payment, driving real demand.

Toncoin Tokenomics: Let’s Talk Money Clearly

Total Supply and Circulation
Maximum supply is 5 billion TON (Note: some historical info shows 5 billion, but please refer to the latest official statement). Currently, 2.41 billion are in circulation, with gradual release over decades via validator rewards.

Inflation and Validator Incentives
Annual inflation rate is about 2%, used to reward validators. Assuming 10% of supply is staked for validation, validators can expect around 20% annual return. This design rewards participation while avoiding excessive inflation.

However, there is a balancing mechanism: validators signing invalid blocks or going offline will be slashed, with those tokens permanently destroyed. This deflationary mechanism creates a self-regulating economy.

Storage Fees and On-Chain Costs
Unlike Ethereum, TON charges ongoing fees for maintaining on-chain state. The more data stored and preserved, the higher the cost. This incentivizes developers to optimize storage efficiency and prevents blockchain bloat.

Six Main Uses of the Token

• Paying transaction fees: every operation requires TON as fuel
• Validator staking: “ticket” for participating in block creation
• Smart contract execution: fuel for complex computations
• Cross-shard message routing: fees for inter-shard communication
• Ecosystem service payments: DNS domains, storage, network services all paid with TON
• Governance participation: token holders can vote on protocol upgrades

How Does TON Compare to Other Public Chains? Where Are Its Advantages?

VS Ethereum
Ethereum handles 15-30 TPS with high fees. TON theoretically reaches millions of transactions per second through infinite sharding, with minimal costs. The gap is not just “optimization” but architectural.

VS Solana
Solana can reach 65,000 TPS but often experiences outages. TON’s multi-chain design avoids this centralization bottleneck, maintaining high throughput under decentralization.

VS Next-Generation Chains (Aptos, Sui, etc.)
These projects are technically advanced but face an unavoidable problem: cold start. They must build user bases from zero. TON, by contrast, inherits Telegram’s 900 million users. Ultimately, technology needs application adoption; without users, even the best tech is just a bubble.

TON’s real killer combo is this: advanced technology + large-scale user base + intuitive user experience. Competitors can imitate individual features but cannot replicate this entire package.

TON’s 2026-2028 Outlook

Technical Roadmap

• Further optimize sharding to reach millions of TPS
• Develop new smart contract languages (Java-like, Haskell-inspired, ML-style) to expand developer ecosystem
• Build cross-chain bridges to major blockchains
• Deploy advanced cryptography like zero-knowledge proofs

Ecosystem Expansion Strategy
Focus on emerging markets lacking traditional banking services. Direct fiat channels, localized education, regional cooperation—making TON a “truly global payment network.”

User Goals
Officially aims to onboard 500 million Web3 users by 2028. This sounds ambitious, but considering Telegram’s 900 million users, it only requires a 50% conversion rate.

Summary: Why Is TON Worth Paying Attention To?

The Open Network represents not just another “faster blockchain,” but a breakthrough that truly connects technology with mainstream applications.

Technologically, TON’s infinite sharding and supercube routing solve the scalability issues that have plagued blockchains for over a decade, without sacrificing security or decentralization.

On the application level, Telegram’s integration means TON is no longer in “waiting for killer apps” mode but already has real scenarios like payments, social, and gaming.

Market-wise, the distribution advantage of 9 hundred million users is a natural moat. Any new chain needs huge costs to acquire users, but TON’s users are already there.

Whether you are a developer, investor, or ordinary user, understanding TON’s innovative logic is crucial for grasping the next wave of Web3 evolution.