Crypto Quill

The TON blockchain, or Telegram Open Network, has evolved from a failed crypto initiative to one of the most promising and high-performance decentralized networks in the Web3 space. This article traces the origins of Telegram’s ambitious blockchain project, examining its technical features, challenges, and how it integrates seamlessly with the Telegram app to create a unique crypto ecosystem.

Telegram and the First (Failed) Approach to Crypto in 2017

The story of Telegram’s involvement with crypto begins in 2017, when the messaging platform, founded by Pavel and Nikolai Durov, first explored the possibility of integrating blockchain technology into its services. At the time, there was no existing network capable of handling the scale of Telegram’s user base, which was growing rapidly into the billions. Seeking to address this gap, the Durov brothers set out to develop a blockchain network capable of supporting the massive traffic on the platform.

In 2018, Telegram launched the Telegram Open Network (TON) project, alongside its native cryptocurrency, the GRAM token (later rebranded to Toncoin). The project was initially funded through an Initial Coin Offering (ICO), which raised $1.7 billion—a record-breaking sum that would be used to enhance Telegram’s infrastructure and build out its crypto network.

However, the project ran into trouble when the U.S. Securities and Exchange Commission (SEC) intervened in 2019, accusing Telegram of conducting an unregistered securities offering. This legal challenge ultimately led to the suspension of the project and a $18.5 million fine. The Durov brothers were forced to return the raised funds and abandon the Telegram Open Network.

The Open Source Blockchain of TON Is Born

Despite the failure of Telegram’s initial ICO, the TON blockchain was far from over. Instead of giving up, Telegram decided to decentralize the project, opening its source code to the community in 2020. With this shift, TON was transformed from a centralized corporate project into an open-source blockchain developed by an independent community. This move allowed the network to thrive outside of Telegram’s control, marking the true birth of the TON blockchain as we know it today.

The GRAM token was rebranded as Toncoin, with no central entity controlling it anymore. The decision to transition to a decentralized governance model enabled TON to become a truly community-driven project, paving the way for its future success. With this transformation, TON was no longer a Telegram-exclusive tool, but an independent blockchain project with a focus on scalability, speed, and decentralized applications (dApps).

Characteristics of the Crypto Network: Integration and Scalability with Telegram

One of the key features of the TON blockchain is its high scalability and integration with Telegram’s existing infrastructure. Unlike many other blockchain projects, TON was designed to work seamlessly with the Telegram app, taking advantage of Telegram’s vast user base and network effects.

The network’s dynamic sharding mechanism ensures that transaction loads are handled efficiently, providing high-performance scalability. This means the network can process large volumes of transactions without compromising speed or efficiency.

Additionally, the TON blockchain uses a specialized Byzantine Fault Tolerant (BFT) consensus model known as Catchain Consensus, which ensures the reliability and integrity of the network. Combined with Proof of Stake (PoS), this makes the TON blockchain a secure and robust platform for processing transactions.

Another standout feature of TON is its virtual machine (TON Virtual Machine, TVM), which executes smart contracts and supports the development of dApps. The TON ecosystem also allows users to directly send and receive Toncoin through the Telegram app, making it a user-friendly experience that simplifies crypto transactions.

Moreover, Toncoin has utility as both the gas token for transactions on the network and as a payment method. Users can stake their Toncoin to help secure the network or tip content creators, while the integration of Telegram Stars makes it easy to make payments via bots.

The Majestic Growth of Telegram’s Crypto Ecosystem in 2024

While TON officially launched in 2020, it wasn’t until 2024 that the blockchain gained mainstream adoption. Telegram’s crypto ecosystem has seen explosive growth, solidifying its position as one of the top 20 chains by total value locked (TVL).

In 2024, several strategic initiatives helped propel TON into the spotlight. For example:

• Sharing advertising profits: In February 2024, Telegram announced that it would share 50% of its advertising profits with channel owners, paid out in Toncoin. This move increased the utility of Toncoin and attracted more users to the blockchain.
• Community incentives: In March 2024, Telegram allocated 30 million Toncoin (valued at $115 million) in rewards for community participation, further boosting network engagement.
• USDT integration: In April 2024, Telegram integrated USDT (Tether), a popular stablecoin, into the TON network, giving users another way to interact with the platform.
• Play-to-earn games: The introduction of play-to-earn games like Notcoin and Hamster Kombat in 2024 generated massive engagement, with hundreds of millions of players flocking to Telegram-based games. This success has made TON one of the most prominent blockchains in terms of user traffic.

These developments have helped Toncoin and the TON blockchain gain a solid following, positioning it for mass adoption in the Web3 ecosystem.

The Future of TON and Telegram’s Crypto Network

Today, TON stands as one of the most promising blockchains in the crypto world. With its integration with Telegram, its robust scalability, and its growing ecosystem, TON is well-positioned to continue its growth trajectory and potentially reach mass adoption.

As Telegram continues to innovate and expand its crypto offerings, Toncoin may become an essential part of the broader Web3 ecosystem. The combination of low transaction costs, user-friendly interfaces, and strong community involvement makes TON one of the standout projects to watch in the crypto space.