TON: An Overview

TON: An Overview

June 12, 2024

Overview

The Open Network (TON) is a decentralized platform by Telegram's founders, supporting DApps, DeFi, and DAOs. Toncoin is used for payments, fees, and staking. The network uses PoS, processes millions of transactions per second, and recently surpassed $300M in TVL.

3 min. read

3 min. read

3 min. read

What is TON?

The Open Network (TON) is a decentralized platform originally developed by Telegram's founders. 

The platform supports decentralized applications (DApps), Decentralized Finance (DeFi), and decentralized autonomous organizations (DAOs). These features make TON a versatile choice for developers and users, offering a comprehensive infrastructure similar to other leading Layer 1 chains. 

Important Metrics of the Project

Toncoin: Toncoin (TON) is the native cryptocurrency used throughout the Open Network Ecosystem. It is used for various purposes, including payments, transaction fees, and staking. Toncoin is traded on major exchanges like Kucoin, MEXC, ByBit, Binance, and others.

Overall Blockchain Performance: TON's blockchain can theoretically process millions of transactions per second and generates new blocks approximately every 5 seconds. The network's scalability is enhanced through sharding, which allows multiple transactions to be processed at the same time. 

The TON network utilizes a Proof of Stake (PoS) consensus mechanism. Validators are rewarded based on the amount of TON they stake, contributing to the network's security.

The TON Virtual Machine (TVM) executes smart contracts on the network, facilitating operations and enabling app creation. This allows developers to build various applications on top of the Ton network. 

Recent TON News and Milestones

In March 2024, Telegram launched an ad revenue-sharing system for channel owners, which pays exclusively in Toncoin and splits the revenue equally between the platform and the channel operators. On May 27, 2024, the total value locked (TVL) on TON surpassed $300 million for the first time, having over a tenfold increase since March.

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.

2024