Is Toncoin a good investment? Explanation on TON:

The cryptocurrency market is now witnessing a surge in new ventures and exciting projects, each with its own unique goals. However, most of these projects aim to lead the era of Web 3.0 and decentralized finance (DeFi).

One of these projects is Toncoin (TON) - hailed by the community as one of the most promising crypto projects of the year. It has successfully bucked the 2022 bear market on multiple occasions and demonstrated some of the best growth in the last year.

But what exactly is Toncoin (TON) and why has its value been rising?

This article will take a deep dive into Toncoin and the TON ecosystem. We will examine how Toncoin works, its relationship with Telegram, and why many people believe it is a good investment.

Let's get straight to the point and start here 👇

What is Toncoin?

The Open Network (TON) is a decentralized layer 1 blockchain network whose native cryptocurrency is Toncoin (ticker: TON). Toncoin, formerly known as Gram, uses the Proof of Stake (PoS) consensus mechanism on the TON blockchain to validate transactions, settle payments, and pay transaction fees.

TON, short for “The Open Network,” is a community-driven blockchain with a variety of features. In order to facilitate fast, cheap, and energy-efficient blockchain transactions, Telegram created TON to attract billions of users.

The Open Network is known for its adaptability and scalability, lightning-fast transactions, low fees, and user-friendly applications. It also doesn’t hurt the planet. Before buying the network’s native token, Toncoin (TON), we recommend reading this article to get familiar with this cryptocurrency.

What is Toncoin related to Telegram?

While developing their cloud-based instant messaging service, Telegram developed a blockchain called the Telegram Open Network, but later they abandoned the project. After the developers abandoned the project, Telegram transferred its ownership to the community, who later rebranded it as The Open Network.

Telegram released a “lightweight thesis” and white paper about the Telegram Open Network in 2018. The project formerly known as Gram has been under active development until 2020.During the development process, TON sold Gram tokens privately to raise funds. At the time, Gram’s $1.7 billion token sale in April 2018 was the second largest ever. After the token became more well-known, more companies around the world bought it for billions of dollars.

Due to the attention Gram received, the network began to have problems. Prior to the token’s ICO, there were many Twitter ICO scams. Telegram’s CEO and co-founder Pavel Durov promptly announced that the company would provide an official way to participate in the ICO.

Telegram faced many challenges from the US SEC as they tried to sell TON publicly. In May 2020, Telegram’s founder Pavel Durov decided that the company would no longer contribute to the development of the blockchain and would begin returning payments to initial investors.

TON’s Second Launch.

There is a strong network of TON supporters, and the global decentralized community of crypto enthusiasts and developers recognizes the promise of the blockchain. Due to the open-source nature of the TON project and the availability of its code on GitHub, developers in the community can continue Telegram’s work and create additional TON applications.

Toncoin’s decision-making process is completely decentralized, allowing each token holder to contribute to its development and relying on universal voting among independent developers to reach consensus.

Due to the disruptions initially caused by decentralized systems, the network implemented a horizontal structure where there are divisions of labor among community enthusiasts, each active in their field, such as design, blockchain systems, etc. This had a good effect on the project as it began to receive more development awards and grants.

How does Toncoin work?

As the native currency of the blockchain, users can use Toncoin on the TON network for various purposes, such as paying for decentralized applications (DApps).

Unlike most blockchain ecosystems, the TON ecosystem can sustain billions of concurrent users. It uses a blockchain sharding process, which utilizes multiple subnetworks (or shards) on a single blockchain to perform operations in parallel and at a faster speed. Each shard plays a role in ensuring that invalid blocks do not accumulate in a single location.

The TON network runs on a PoS consensus mechanism. The project uses Toncoin to verify all transactions and pay validators for their efforts.Nominators earn money from the network by lending their tokens to validators. In order for nominees to borrow tokens, they must first join a pool and stake their assets. Smart contracts manage nominators and validators, improving the overall security of the system.