According to Statista, there are various categories of cryptocurrency on the market, with about 10,000 active in the industry. Most are altcoins, but some are stablecoins or meme coins. The use case diversity is beneficial for investors who want to diversify their portfolios and build up value for the long term.
Toncoin is one of these cryptocurrencies whose value comes from its role as a medium of exchange, support for decentralized applications, and opportunities for staking and governance. Therefore, the increasing interest in these features influences the Toncoin price, which advanced due to the blockchain’s fast transaction speeds and scalability.
The TON blockchain and cryptocurrency contribute to the growing ecosystem. Here’s more about TON.
What is Toncoin?
Toncoin is the native cryptocurrency of The Open Network, a project from the team behind the Telegram app. The TON Foundation created the cryptocurrency for transaction fees on the blockchain, staking, and governance. Developers leverage it on the blockchain to offer decentralized applications from sectors like decentralized finance and nonfungible tokens.
Since its establishment, TON has developed quickly and adapted to market needs, becoming an essential player in cryptocurrency. People use TON for fast and safe peer-to-peer transactions without intermediaries. Other use cases include transaction fees for transaction processing, but users can also stake their tokens to receive rewards for their contributions. TON holders are important network participants since they can vote on proposals and guide them towards different future outcomes.
What about the TON blockchain?
The Open Network of TON is an open internet platform containing various tools and services infrastructure. For example, the TON blockchain supports cross-chain interoperability, can process millions of transactions per second and aims to contribute to decentralization.
The network also includes other useful tools, such as the following:
- TON DNS assigns names to accounts;
- TON storage ensures optimal data retrieval and decentralized file storage;
- TON Space integrates the ecosystem with Telegram;
- TON proxy offers connection to TON websites;
Operating as a ledger of state transitions, TON’s design principles revolve around flexibility, scalability, and security. The proof-of-stake consensus mechanism allows TON to focus on scalability and efficient capacity.
What’s the TON architecture?
The TON ecosystem is unique, which is why its popularity has exploded in recent months. The master chain follows specific work chains, shard chains, and account shards through which data is safeguarded and stored.
The master chain stores all the information about the protocol, active validators, and block hashes. The hierarchy follows the work chain, which operates in parallel with the TON network. It includes special rules and consensus but operates for the master chain. Finally, shard chains are sub-chains of work chains that split and merge to balance the data workload.
The dynamic sharding of TON distributed transactions across the network eliminates bottlenecks, which is why TON is so efficient and piqued developers’ interest. The blockchain’s complex smart contract infrastructure allows users to handle internal and external messages while updating the state.
TON and gaming
The blockchain’s tools and technology allow the creation of numerous applications in different industries. TON is especially efficient for gaming, where people can create mini apps for Telegram users to buy and play with the help of the TON wallet.
Therefore, TON empowers the GameFi industry by addressing a massive audience interested in ultra-fast blockchain features. In addition, Telegram users can access decentralized finance applications to support the developer community.
The TON coin massively contributes to the growth of this decentralized sector by incentivizing creators and adding value to the community.
What’s on the TON development roadmap?
Like any other cryptocurrency project, TON also has an improvement roadmap. It all started with developing a unique layer-1 chain for the Telegram userbase of the Telegram Open Network, and it has changed until now when we have a scalable and fast ledger.
Regarding the future of TON, the roadmap includes a lot of interesting upgrades, such as the following:
- A TON browser;
- Gasless transactions;
- Cross-chain transfers for BTC, ETH, and BNB;
- Stablecoin toolkit;
- Sharding guidelines and tools;
TON proxy also received important updates. The 3.0 version allows the network to accept micropayments deducted from users’ wallets. TON storage is also innovating to streamline the network’s traffic.
Is TON a reliable alternative for Ethereum?
While Ethereum is one of the most popular networks on the market and has achieved popularity through approaching the latest decentralized technologies, it still faces challenges like high gas fees and network congestion.
Although Ethereum’s roadmap has considerably improved these aspects, making the blockchain highly sustainable and efficient, developers still seek cheaper and faster alternatives that provide the same outcome, like Solana.
But what if TON competes with Ethereum? Are there chances for the young blockchain? When it comes to utility comparison, we can see how TON is better than the later blockchain in terms of transactions and fast operations. At the same time, both networks accept self-custody.
However, TON is less decentralized than Ethereum, which may impede users’ trust due to suspicions of influencing the network. Therefore, we can say TON was at Solana’s level when it started operating on the market, so there is a chance for improvement.
Should you invest in TON?
TON is part of an early project, so for now, it may seem counterproductive to invest in it. However, its popularity increased, so it looks like a promising network for those interested in unique projects. Hence, you can invest in TON if you allocate the assets evenly according to your risk level.
It may be best to start small and monitor the cryptocurrency’s value often to ensure you can manage upcoming volatility. The dollar-cost averaging strategy is best for safeguarding your portfolio since you invest small but consistently over the long term.
What do you think about TON?
The TON project was initially a part of the Telegram messaging application, but it evolved into a decentralized project through which users can make fast and cheap cryptocurrency transactions. The blockchain also offers tools for developing decentralized applications, and Telegram users can benefit from these features through the TON cryptocurrency.
