Today we continue to analyze the 35 projects that Grayscale is about to add to its holdings. As mentioned before, when Grayscale starts, even if it is a small project, it will have tens of millions of dollars. A single order of tens of millions of dollars may also be a huge pull, and other ETFs may also enter these projects, so it is necessary to ambush in advance and understand the fundamentals of these projects clearly. Among the 35 projects, I put 13 of them in layer1, Aptos (APT), Celestia (TIA), Core (CORE), Cosmos (ATOM), Toncoin (TON), TRON (TRX), Internet Computer (ICP), Kaspa (KAS), VeChain (VET), Mantra (OM), Celo (CELO), Sei (SEI).
Today we continue to analyze TON and TRON.
5. TON (TON-The open network project analysis)
To summarize the project in one sentence, TON has exceeded expectations. I didn’t expect that the game series of TON would become popular. The TVL reached nearly 800 million in June 24. You should know that when we talked about this project last year, it was only 15 million US dollars. So when we saw this data, we gave up the project directly. But the project is developing dynamically, so it is important to review it from time to time.
Key points-Features of TON
1. Multi-chain: TON is similar to cross-chain projects such as Cosmos and Polkadot, both of which are multi-chain architectures. On TON, there are heterogeneous multi-chains including masterchain and workchain (the workchain can be as high as 2 to the 92th power, which means the highest TPS can reach millions), as well as homogeneous multi-chains including workchain and shardchain. Each workchain can define its own exclusive protocol, making the services supported by the entire TON network full of infinite possibilities. Among them, workchain and masterchain share verification nodes. TON shortens the transaction confirmation time to 5 seconds for the addition of a new block by introducing a main chain for endorsement.
2. Tight coupling: This refers to the tight coupling between workchain and shardchain. Tight coupling means that the modules are highly dependent on each other and the system also has high requirements for its ability to handle transactions. Therefore, tight coupling only makes sense in blockchain under the premise of sharding.
3.PoS+BFT: The consensus algorithm adopted by TON is the same as Cosmos and Polkadot. According to the white paper, becoming a node does not require permission, only a certain number of tokens and ordinary IT operation and maintenance capabilities are required. There are four roles in the TON network: Validator, Nominator, Fisherman, and Collator. Malicious validators will be punished by slashing; in addition, the support of the BFT consensus mechanism ensures that the consensus will not branch, and is more suitable for the "tightly coupled" multi-chain architecture.
4. Anonymous protection of account privacy: TON Proxy (network proxy/anonymity layer), one of the components of the TON blockchain, is used to hide identity and create a decentralized virtual private network (VPN) to protect online privacy.
5. Smart Contract (new language Fift): In May 2019, co-founder Nikolai Durov published on May 23 and introduced a new language called Fift. This language is specifically used to develop and manage TON blockchain smart contracts and interact with the TON Virtual Machine (TVM). In turn, TVM executes smart contract code in the TON blockchain, supports all operations required to parse incoming messages and persistent data, as well as create new messages and modify persistent data. Tooz said its role is similar to Libra's Move.
Token Data
The current price of the coin is around 5.2. The highest point in June 2024 was 8.4. The highest point in 2021 was 4.5. The lowest point in 2023 was 1.5. So it has doubled 5-6 times. So this performance is better than that of Bitcoin. The current market value is 13 billion US dollars, and the overall FDV is 26 billion.
The current total number of tokens is 5.1 billion, and 2.5 billion have been released. According to the current release rate, 20 million are added each year. According to the current currency price, it is about 100 million US dollars. This data is basically negligible for the current market value of TON.
Moreover, the daily burning is increasing, especially in the last few months, the average daily burning is 10,000, and the peak is 40,000, while the daily mint is only about 70,000.
In addition, daily wallet activity is also increasing, and the data for asset staking and DEFI are performing well.
6.Tron
Brother Sun’s blockchain, many people may have a big prejudice against this project. More factors may be due to the empathy effect brought by Brother Sun. Some people may not like Brother Sun very much, so they have a lot of opinions about Tron.
But if Tron is a junk project, why is its market value up to 13.8 billion USD, and currently ranks ninth in market value, almost higher than other public chains? What are the god-level public chains below it, such as AVAX, TON, DOT, NEAR, etc. Are these projects all very powerful?
Moreover, Tron’s current exchange rate has reached its peak in 21 years. The lowest point in 23 years was about 0.01. It has now increased by 16 times. Among the top 10, the only one that can increase by more than 10 times is SOL!
In March last year, we focused on analyzing its white paper. In fact, technically it was improved on the basis of Ethereum. If you say that there is not much technical innovation, it is mainly in the ecology, and Brother Sun has done a good job.
Differences between Tron and ETH
1. Consensus mechanism: TRON’s consensus mechanism is DPOS (Delegated Proof of Stake). The principle of DPoS can be compared to the People’s Congress system, that is, every coin holder has the right to vote for the proxy node, and people with less coin holdings can also participate in the voting. According to the voting results, the node with the most votes will assume the responsibility of generating new blocks. Currently, Tron’s 27 accounting nodes are almost all controlled by Sun Ge himself, so the degree of centralization is very high. Because there are few nodes, Tron’s speed is still very fast, reaching TPS2000, and you have hardly heard of Tron’s coins being stolen, because he can control the network rollback, but this consensus is very un-blockchain and does not make sense.
2. Resource model: Ethereum transactions require payment of Gas fees, while on the TRON network, transactions require payment of bandwidth and energy fees. Tron’s GAS fee is indeed very low, and everyone should choose Tron’s network when transferring U through an exchange.
3.TRON Virtual Machine (TVM): Although TRON TVM is compatible with Ethereum’s EVM, it is a modified version of EVM.
Ecological data
The current overall TVL is 7.4 billion US dollars. What is this level in the public chain? Currently second only to ETH, SOL, which has a higher market value than it, currently has a TVL of 6 billion, and BSC is 4.7 billion. In addition, the current TVL has increased by almost 2 billion this year.
The top rankings are Justlend, Juststable, and sun (DEX) in the lending sector. The main reason for this increase is that SUN launched a meme launch platform, so Sun’s ability to take advantage of hot topics is definitely very strong.
Finally, let’s rank the projects we talked about before. According to the TVL/FDV ratio, APT is currently 0.06 (7/110), Ton is 0.015 (4/267), Tron is 0.5 (74/138), and Ethereum is 0.15 (480/3159). So if we only look at it from this perspective, Tron is undoubtedly the most advantageous.
The current ranking is Tron>APT>Ton>atom>core>TIA.
