Toncoin: Revolutionising Blockchain Scalability
Toncoin is a layer-1 decentralised blockchain initially created in 2018 by Telegram, the encrypted messaging platform. However, the project was abandoned and subsequently taken over by the TON Foundation, which rebranded it from "Telegram Open Network" to the new name of "The Open Network".
Since 2020, the development of Toncoin (formerly known as Gram) and the TON network has been driven by a non-commercial group of supporters and an independent community of enthusiasts known as the TON Foundation.
It was intended to be integrated into a user-friendly application that would allow for the easy buying, sending, and storing of funds, with users paying transaction fees and using Toncoin to settle or validate transactions.
Toncoin uses the Proof-of-Stake (PoS) consensus model to ensure scalability and reliability. The project website claims the platform offers customers fast, transparent, and secure payment services, enabling transactions with minimal fees and without needing third-party applications.
What are the uses of the Toncoin token?
Toncoin is expected to play a significant role in the new economy and Web3. The platform utilises smart contracts to facilitate transaction processing fees. The applications built on the platform offer payment services. Validators can lend capital and earn interest, while cross-chain transaction fees are also facilitated through this token.
TON's on-chain governance program depends on the token and is also used as payment for blockchain-based domain names (DNS) and TON Proxy. Additionally, validators are required to maintain the blockchain by staking this cryptocurrency. Looking to the future, it is expected to be used as payment for decentralised data storage.
TON's flexible architecture allows for scalability without performance losses
The Open Network is a blockchain-powered by the community, with a flexible architecture focused on serving the average consumer. Its most outstanding feature is its ability to quickly process and validate transactions per second (TPS).
During a contest in September 2021, the network processed a record-breaking 55,000 TPS, although the current TPS may be in the hundreds of thousands or even millions. This attribute facilitates the project's growth while preventing any performance losses.
The developers' objective is to establish a comprehensive ecosystem encompassing decentralised storage, decentralised services, an equivalent of the domain name system (DNS), an anonymous network, an instant payment platform, and speedy/affordable transaction processing.
With its scalable and shardable design, the Toncoin network can expand infinitely without compromising performance. This flexible architecture allows the network to accommodate many transactions, accounts, and validators. As of the latest data, the Toncoin network has processed a total of 118,225,433 transactions and has 2,334,994 active accounts.
Furthermore, the network is secured by 297 validators who use the PoS consensus mechanism to validate transactions and earn Toncoin rewards. This impressive scalability, performance, and security make it a promising platform for decentralised applications and digital asset management.
TON's sharding feature
This network is structured on the sharding principle, or segmentation, featuring a multi-level structure involving multiple subnets on the same blockchain. The TON network is constituted of the master, work, and shard chains. This sharding feature prevents the net from accumulating unverified blocks and speeds up tasks. The developers of TON focus on scalability, efficiency, and mass adoption, providing ultra-fast transactions that verify and process a massive amount of TPS.
It offers various services to its users, including TON Wallets, which provides two categories of wallets (custodial and non-custodial), and TON Services, allowing developers to create multiple DApps. In contrast, users can access third-party apps through a user-friendly interface. TON Storage provides private encryption using the private key of the owner's wallet, while TON Proxy allows access to the TON blockchain via decentralised VPNs.
TON DNS (decentralised name system) allows traditional websites to work in the TON network, allowing users to set short, readable names.
Toncoin price and tokenomics
As of writing, the Toncoin price is $2.31, with a 24-hour trading volume of $25,099,270. The coin's volume is divided between centralised exchanges (CEX) and decentralised exchanges (DEX), with $25,193,486 and $124,808, respectively.
The coin's market cap is $2,823,172,013, while its fully diluted market cap is $11,544,168,517. The circulating supply of TON is 1,221,401,181, while the maximum supply is 5,000,000,000, and the total supply is 5,047,558,528.
## Security measures to protect the Toncoin network
The Toncoin network employs the PoS consensus mechanism for transaction verification and rewards validators with Toncoin. Nominators can also offer tokens to validators and earn rewards. Additionally, the network utilises smart contracts to manage validators and nominators, providing an extra layer of protection. These smart contracts are executed through the TON Virtual Machine (TVM).
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