Author: Doumkou Stefani
Publication date: 29.08.2024
The Open Network (TON) has had a remarkable journey, evolving from a project started by Telegram to becoming a major player in the blockchain space. This article explores the key milestones in TON's journey, highlighting how it has become a leading platform in the blockchain space.
Telegram's Ambitious Blockchain Project
TON’s narrative starts in 2017 as Telegram which was established by Pavel and Nikolai Durov wanted to create a decentralized platform as per the block-chain technology. The company’s intention was to back Telegram with a large user community and incorporate secure payments plus decentralized applications dApps therein. Hence this idea came up with the invention of Telegram Open Network (TON).
Early in 2018, through private sales of its cryptocurrency Gram, Telegram raised approximately 1.7 billion dollars for developing ton. Nevertheless, it faced several challenges soon thereafter.
The Legal Challenges
Weeks before TON was supposed to be launched in October 2019, it was halted by the U.S Securities and Exchange Commission (SEC). As per SEC, ‘Gram’ tokens were sold without registering them as securities. After a lengthy legal battle, Telegram decided to withdraw from the TON project in April 2020.
However, the TON community was not discouraged with the situation. Independent developers then took over the project just where Telegram had stopped, renaming it as The Open Network (TON).
The Open Network is Born
After Telegram stepped away, TON evolved into a fully decentralized project managed by an open-source community. By 2021, the network's mainnet launched, marking its independence as a public blockchain platform.
How TON Works
TON's blockchain is designed for massive scalability, enabling it to handle large volumes of transactions without any slowdown. It achieves this through its proof-of-stake system, where validators stake coins as a deposit, and sharding, which allows the network to split into smaller parts. This combination helps TON manage more transactions efficiently while avoiding congestion. Additionally, advanced security measures are in place to ensure the network remains secure and that transactions are processed accurately. As a result, TON stands out as a fast and reliable blockchain.
Applications of TON
Toncoin serves as the primary cryptocurrency within the TON network, facilitating transactions and covering fees essential for network operations. Complementing this is TON DNS, a system designed to simplify user interactions by replacing complicated codes with easy-to-remember names, thereby making it more accessible to access services on the network. Additionally, TON Storage provides a decentralized and secure solution for file storage across the network, operating similarly to torrents but with the added security of blockchain technology. Together, these elements create a cohesive and user-friendly ecosystem within the TON network.
Latest News
In 2024, The Open Network (TON) expanded rapidly, hosting over 800 applications across finance, gaming, and developer tools, and gaining attention at the Open Summit in Taipei. However, the network faced a major setback when the launch of the DOGS meme coin overwhelmed its infrastructure, causing a seven-hour halt in block production and a drop in Toncoin's value. This disruption, compounded by the arrest of Telegram's CEO, Pavel Durov, led to significant market instability. Despite these challenges, TON managed to recover and continue its operations, underscoring both its potential and vulnerabilities.
Conclusion
TON started as a big project by Telegram to create a super-fast and scalable blockchain but faced legal challenges that forced Telegram to step back. However, developers kept the project alive, and it continues to develop new tools and applications in the blockchain space. The ongoing development and positive sentiment around TON, despite past and current challenges, suggest that it has a solid chance to grow and potentially increase in value over the coming years. However, as with all cryptocurrencies, this comes with the caveat of high volatility and inherent risks.
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