Theses days, it appears like everyone wants to play the cryptocurrency game, whether they are developers, business owners, or well-known organizations like Telegram. A long, arduous journey ensued after this company launched a cryptocurrency endeavor. What precisely is toncoin used for? It is a byproduct of this trip and has been around for a while. The most crucial question is: Is it secure?
The native token of the TON network is toncoin (TON). The Open Network, sometimes known as TON, is a decentralized layer-1 blockchain. The fundamental foundation or architecture of a specific blockchain network is represented by Layer-1, which denotes the stage of blockchain development.
TON uses blockchain sharding, a method that involves using multiple blockchains within the same network, each of which has its own purpose, such as governance, transaction recording, or otherwise. TON does this because it is designed to be scalable and is allegedly able to accommodate "billions of users." Master, work, and shard chains make up the network of TON at the moment.
By doing so, the network workload is distributed across several chains, preventing any one chain from having to cope with a significant backlog of unverified blocks. Sharding is presently used by other well-known blockchains like Zilliqa, and the Ethereum network intends to employ it soon.
The proof of stake (PoS) consensus process is used by the TON network to validate transactions. A widely used approach called proof of stake uses validators (sometimes called nodes) to validate transactions through the use of staking. Since PoS uses less energy and is therefore more ecologically friendly than proof of work, which is the consensus process used by Bitcoin, many blockchain networks have switched to it.
Early Challenges of TON
The Telegram Open Network (TON) was first introduced in 2018 to enable cryptocurrency payments using Telegram. But early on, the initiative encountered a number of difficulties.
When Telegram Open Network was launched, its default currency was the Gram. The SEC stepped in after the public sale of Gram coins started when they discovered Telegram had overlooked a preliminary sale of $1.7 billion worth of Gram tokens. Because of this, Telegram was instructed by the SEC to temporarily limit Gram's sale and ultimately lost its legal battle over the undeclared transaction.
Along with this problem, the introduction of Telegram Open Network sparked a surge of online attacks made possible by criminals who preyed on unsuspecting people by utilizing the well-known name of Telegram. These charlatans would pretend to be associated with Telegram while giving away free Gram tokens. However, it goes without saying that no Gram tokens were being given away in this instance, despite Telegram's best efforts to inform users of this fact.
But his new issue did not help Telegram's image and added to the slightly tarnished reputation of the original Telegram Open Network.
According to Coin Desk, Telegram promised to restore 72% of investors' initial dividend in Gram tokens after losing its legal battle with the SEC, however only 70% of this was done.
Pavel Durov, the founder of Telegram, ultimately came to the conclusion that it was time for the company to sever ties with Telegram Open Network. However, this didn't render it useless. In 2020, a team of programmers known as NewTON brought TON back to life once more. This group changed the name of TON and continued to develop it. The Open Network is now abbreviated as TON.
In light of this, we get at the TON we see today, which "boasts ultra-fast transactions, minimal costs, user-friendly apps, and is environmentally sustainable" (as stated by TON itself). Toncoin is the money utilized by TON. So let's talk about how it functions.
How Does Toncoin Function?
Although toncoin is frequently referred to as the TON native token, it is actually a coin. This is due to the fact that Toncoin was not created on top of an already-existing chain like Ethereum, but rather has its own blockchain (or, in this case, blockchains). Within the TON ecosystem, Toncoin is used for a variety of purposes that are detailed on the TON website. Let's talk about these applications now.
First, you can use the @wallet bot function in the Telegram app to purchase and send Toncoin. If you want to learn more about utilizing Toncoin on Telegram, check out our article on how to send cryptocurrency using the messaging app.
Additionally, Toncoin can be used to pay for a variety of services provided by TON, like those provided by the decentralized apps created as part of the TON ecosystem. On other blockchains like Ethereum and Avalanche that enable the development of DApps, this is frequently the case.
The governance mechanism for TON allows you to vote on changes and development using Toncoin. By using this voting method, users can influence TON's development rather than having to rely solely on the project's authors. Additionally, validator fees are also paid in Toncoin because TON is a proof of stake network.
Toncoin transactions are also quite cheap to complete. The growing cost of transactions over hundreds of blockchains is one of the main problems facing the crypto sector. The network was built by TON's creators with minimal transaction fees of less than $0.01 in mind. Even Toncoin trades only cost less than $0.05. These small costs make using TON more accessible to everyone when compared to many other blockchains.
Like all cryptocurrencies, the price of Toncoin is constantly changing, but it is now worth little under $1. In spite of the continued decline in the cryptocurrency industry, Toncoin showed an overall rise in demand and value through July 2022.
So, is it really safe to purchase this formerly contentious asset?
Is TONcoin Secure?
First and first, it's crucial to understand that the bulk of cryptocurrencies available today are somewhat dangerous investments. This is due to the fact that the cryptocurrency market is mostly unregulated, extremely vulnerable to a variety of causes that could lead to a crash, and riddled with scams. But since everything is relative, let's find out if Toncoin is a secure cryptocurrency to invest in.
Toncoin is a valid coin with a legitimate use, there is no disputing that. As we've already stated, the principles behind Toncoin are very optimistic and may offer people some extremely practical tools and services.
In this regard, TON (and subsequently Toncoin) have promise in the cryptocurrency market. It has a strong foundation thanks to its capacity to scale while preserving a decentralized structure and its cheap transaction costs. To be sure, the cryptocurrency market is always evolving, and a variety of factors could have an impact on Toncoin's development, making it a risky investment.
Toncoin's Future Might Be Bright
Although nothing in the world of cryptocurrencies can ever be guaranteed, it is safe to predict that TON and Toncoin may become major players in the market over the next few months or years. With a growing network and an increasing number of features, this network and its native coin may become more prevalent over time.
