What is Toncoin
The Open Network (TON) is a layer one blockchain that is designed to secure payments within the Telegram messaging platform.
Created in 2018, The Open Network aims to provide fast, inexpensive and energy efficient blockchain transactions.
TON is the project’s native cryptocurrency that operates through a proof-of-stake (PoS) consensus mechanism, making it a highly scalable network.
Toncoin has an annual inflation rate of 0.6%, and the network operates through validators who are required to own a significant number of the network’s native assets.
History of TON
Throughout its history, The Open Network has gone through a number of challenges that have undoubtedly slowed the network’s development.
In 2018, the whitepaper for the project, which was originally named Gram, was released. During its development until 2020, Telegram raised funding through private sales of GRAM tokens.
The original goal of the project, as mentioned above, was to provide secure crypto payments through the Telegram app. Despite the efforts of the development team, the US Securities and Exchange Commission (SEC) opposed the idea due to the fact that Telegram had not persuaded the sale of GRAM tokens worth a record $1.7 billion. The app, run by Russian national Pavel Durov, eventually lost the lawsuit and halted development and began compensating investors after the SEC categorized the offering as a sale of unregistered securities.
Despite the setbacks, the developers continued to work on the TON Network ato 2020, launching a new one under the name “NewTon.” After the change, the network provides fast and secure transactions with low fees, even allowing the purchase of goods and services through the network’s apps.
Because of its open source nature, community developers were able to pick up where Telegram left off and build new TON functionality.
The idea behind TON was originally to serve as an alternative to Gram and not represent an investment in Telegram itself.
How does Toncoin work?
Toncoin has a number of potential implementations in the TON network, including as a form of payment in decentralized applications (dApps).
Unlike most other blockchain ecosystems, TON is designed to support billions of concurrent users. The ecosystem does this by using blockchain sharding, which involves the use of multiple subnets or shards in the same chain to quickly execute tasks. Each shard has its own purpose and works to prevent large backlogs of unverified blocks.
As previously mentioned, TON uses the PoS mechanism and each transaction is validated using Toncoin, which is also used to reward validators. The network also allows “nominators” to provide their tokens to validators to earn rewards. To lend tokens, a nominator must join a pool and stack (pledge) their assets. Both nominators and validators are managed using smart contracts, which adds an extra level of security.
Use cases
Data storage: users are offered a web storage platform, or put another way, a decentralized file sharing service analogous to well-known file hosting services such as Dropbox or Filecoin. Blockchain data is stored in encrypted form and only the owner of the crypto wallet associated with the account can gain access.
Proxy. This means that two (or more) users can create their own network that only they can access. Two updates are planned for this project. Proxy 2.0 will allow you to completely mask the IP addresses of sites and users on the network and provide anonymity and data protection. Proxy 3.0 plans to introduce the decentralized financial economy (DeFi) to the future Internet. Payment for the use of the network will be done through integration with a crypto wallet.
DNS: The TON project is currently auctioning “.ton” domain names. You can buy your own domain name at this auction. You can also link your wallet to the domain name: then another user will be able to send you coins by simply specifying the domain address as the recipient.
Payments with TON: The project is a unified payment system that will allow users and DeFi platforms to exchange tokens without fees and speed limits using smart contracts.
Voting – TON token holders can vote on developments and changes to the network through the project management program.
Validator – Each user who validates transactions on the network (validator) is rewarded for maintaining the stability of TON.
TON Diamonds: One of TON’s popular products is TON Diamonds, a decentralized marketplace for NFTs where users can participate in online auctions, buying and selling collections of the world’s best digital artists.
How do I buy TON?
1. Choose a crypto exchange
There are numerous cryptocurrency exchanges and marketplaces that range from easy-to-use systems to complex dashboards for advanced traders.
Because TON is so popular, you’ll be able to purchase the token on most cryptocurrency exchanges, but it’s advisable to stick to a few of the more popular exchanges like Binance, Kraken, Coinbase, etc. Different platforms come with different fees, security measures, and may include other features, so it’s a good idea to do your research before signing up.
2. Create an account and confirm it
Start with account registration, which is completely free on the aforementioned platforms. For added security, 2FA – two-factor authentication – is also enabled. This way, you and your device are the only ones who can grant access to the account.
You are then taken through a KYC process, which is providing personal information – ID card/passport/driving license details, proof of address (e.g. bank statement or utility bill).
After completing these steps, you are ready to buy, sell and trade Avalanche (AVAX), as well as take advantage of various services such as staking.
3. Fund your account
Once your account has been registered and verified, you need to fund the account to start taking advantage of the platform’s buying and trading services.
The main deposit options are:
- Credit/Debit Card
- Bank deposit
- Peer-to-peer (P2P)
Where to buy TON?
On Binance, the world’s largest cryptocurrency exchange, deposits are absolutely free.
