The Open Network (TON) is a fully decentralized, layer-1 blockchain originally designed by Telegram. It is scalable, shardable, and enables fast, low-cost, and energy-efficient blockchain transactions. Every feature is built with everyday users in mind.
Through TON, Telegram users can now buy and sell cryptocurrencies without ever leaving the app.
Currently, TON is attracting significant attention and continues to grow despite broader market volatility. Following the FTX collapse, this open-source protocol remains one of the few thriving ecosystems.
So, what exactly is TON? And how does Telegram use it to provide crypto services to its users? Let’s take a closer look.
The Origins and Evolution of TON
Rebranding and Community Takeover
Telegram Open Network was initially developed by Telegram as a blockchain project. After the project was discontinued by Telegram, it was handed over to the community and rebranded as The Open Network.
Telegram’s Legal Challenges with the SEC
In 2020, after a legal battle, Telegram agreed to a settlement with the U.S. Securities and Exchange Commission (SEC) and was forced to halt its work on The Open Network.
Telegram CEO Pavel Durov and his brother Nikolai created the Telegram Open Network in 2018. After failing to register the $1.7 billion token sale from its initial coin offering (ICO), the SEC ordered Telegram to stop selling $GRAM, the token originally associated with the TON blockchain.
In May 2020, founder Pavel Durov announced the end of Telegram’s involvement in blockchain development and began issuing refunds to early investors.
The Relaunch of TON
After Telegram abandoned the project, community developers continued its development, renaming it The Open Network and rebranding the original $GRAM token (which never officially launched) to TON.
Durov expressed his support for the project in December 2021, stating: "I am proud that the technology we created is alive and evolving… TON is still ahead of everything else in the blockchain realm."
The Core Objectives of TON
In an interview, a representative from the TON Foundation stated: "TON is designed for millions of users. One of our main goals is to make blockchain usage no more complicated than using the apps people are already familiar with."
While Bitcoin and Ethereum were pioneers in blockchain technology, these networks face certain challenges. Users often encounter high fees, slow transaction speeds, and a steep learning curve when trying to use cryptocurrencies for everyday purchases.
Within just one year, a complete ecosystem with all necessary products and services was built around TON. This includes tokens, non-fungible tokens (NFTs), staking, domain names, marketplaces, multi-functional wallets, decentralized exchanges (DEXs), and other DeFi services.
TON currently has three bridges: one on Ethereum, another on BSC, and one on Orbit Bridge. TON is the native cryptocurrency of the network, used to pay for executing smart contracts, using dApps, and participating in governance. The Open Network is fully operational, with 240 validators and 1.4 million addresses as of December 2022.
In April 2022, the TON Foundation received a donation of 500 million TON from early token miners. These were testnet tokens distributed via Proof-of-Work (PoW) mining completed in the summer of 2022.
Thanks to dynamic sharding and workchains, TON can validate and process millions of transactions per second. In other words, TON’s adaptive architecture allows it to scale infinitely without sacrificing performance.
Understanding $TON – Telegram’s Cryptocurrency
Although Telegram is no longer actively developing The Open Network, TON remains closely linked to the app. The integrated Wallet feature allows users to buy TON and send cryptocurrencies via chat, free of charge. Through the wallet bot, users can also buy crypto with a credit card and conduct peer-to-peer transactions.
TON is designed to support billions of concurrent users—a key differentiator from most other blockchain ecosystems. It achieves this through blockchain sharding, which involves using multiple subnetworks, or shards, within the same blockchain to process tasks efficiently. Each shard has a specific purpose, helping to prevent a backlog of unverified blocks.
The TON network is a Proof-of-Stake (PoS) network. $TON is used to validate transactions and reward validators. Nominators can also earn rewards by lending their tokens to validators. To participate, nominators must join a staking pool and lock up their assets. Smart contracts manage the relationships between nominators and validators. TON is accepted as payment for services and applications within the TON blockchain.
What Makes TON Special? A Comparison with Ethereum and Solana
To quickly understand TON’s positioning, it’s useful to compare it with two other major blockchains: Ethereum (ETH) and Solana (SOL). TON significantly outperforms both in terms of block processing time and overall efficiency. While Ethereum is still working on layer-2 and scaling solutions, TON appears to have already reached the finish line in terms of scalability and speed.
The Growing TON Ecosystem
TON is renowned for its practicality and emphasis on efficiency. Its goal is to make it as simple as possible for end-users to find utility in the token. The TON development community also strives to incorporate advanced features that distinguish it from competitors.
TON introduces radical new concepts for smart contract development. Since it was designed after Ethereum’s launch, it learned from both the strengths and weaknesses of the Ethereum Virtual Machine (EVM) model. Most importantly, TON was created to put blockchain technology into the hands of everyone worldwide.
Primary Use Cases for TON
The TON token is most commonly used to pay commissions for blockchain transactions. Due to its sharding design, users can also employ the token to pay for cross-chain transaction fees or to create new workchains.
Additional use cases include:
- Paying for decentralized data storage.
- Covering fees for using TON Proxy.
- Purchasing TON DNS domains.
- Facilitating in-app payments for dApps on the blockchain.
- Rewarding validators who maintain the blockchain.
Key Milestones in the TON Ecosystem
As part of a partnership with the TON Foundation, DWF Labs has committed $10 million to support the TON ecosystem. All 50 planned seed investments are scheduled over the next 12 months, each aimed at accelerating TON’s growth and project development.
A key focus is increasing the number of TON ecosystem participants by boosting the amount of TON supporting the platform. So far, TON’s trading volume has approached $20 million. In the first three months of the collaboration, DWF Labs will develop a reliable over-the-counter (OTC) market while doubling the number of buyers and sellers.
The Investment Potential of the TON Ecosystem
The potential of the TON ecosystem can be discussed through three main lenses:
- Token Airdrops: Opportunities for users to receive free tokens.
- Mass Adoption Potential: Leveraging Telegram’s enormous user base.
- Exchange Support: Growing recognition, including on major platforms like Binance.
These factors make TON a compelling option for long-term holders.
The Future of TON and Telegram
With over 700 million active users worldwide, Telegram has the potential to catalyze further cryptocurrency adoption if its integrated wallet bot reaches widespread popularity.
When asked about the future of Telegram and The Open Network, a TON Foundation representative said: "Telegram is a platform friendly to everyone in the Web3 world—both for communication and for leveraging its disruptive technology to develop products. Furthermore, The Open Network allows developers to create functional products with real-world use cases that can be deployed within the app."
Developer support remains a top priority. Continuous improvements will be made to tools, documentation, competitions, hackathons, and grant programs. TON is unique in employing novel and sometimes unexpected methods to attract users.
Regarding new network components—such as payment networks, cross-chain solutions, TON Proxy, and TON Storage updates—these remain a strategic direction. However, the immediate focus is on streamlining the existing TON ecosystem to make it as functional and user-friendly as possible.
How to Invest in TON for Optimal Returns
So, how can you invest in TON to maximize potential returns?
The best strategy depends on your investment goals and risk tolerance.
- If you are interested in short-term holdings, you might consider trading TON futures contracts. This allows you to profit from both rising (long) and falling (short) prices.
- If you prefer a long-term investment, staking TON is a solid option, currently offering an estimated 7-8% annualized reward.
Benefits of Trading TON Futures Contracts
- Flexible Long and Short Positions: You can open positions based on whether you expect TON’s price to rise or fall.
- Leverage: By using margin, you can gain larger market exposure with a relatively small amount of capital. It’s important to remember that while leverage can amplify profits, it also increases potential losses.
👉 Explore advanced trading strategies
How to Execute a Short-Term TON Trade
If you are bullish on TON and want to go long, or bearish and want to go short, you can execute these trades on a reputable cryptocurrency derivatives platform. Always ensure the platform is secure, regulated, and offers the tools you need for risk management.
Frequently Asked Questions
What is TON cryptocurrency?
TON is the native cryptocurrency of The Open Network, a high-speed, scalable blockchain originally designed by Telegram. It is used for transactions, staking, governance, and paying for services within the ecosystem.
How is TON different from Ethereum?
TON is designed for mass adoption, offering faster transaction speeds and lower fees than Ethereum. It uses a unique sharding architecture that allows it to scale seamlessly, whereas Ethereum is still rolling out its scaling solutions.
Can I buy TON directly on Telegram?
Yes, through Telegram’s integrated Wallet bot, users can buy and sell TON and other cryptocurrencies without leaving the app, often with no transaction fees for peer-to-peer transfers.
Is staking TON a good long-term investment?
Staking can provide a steady source of passive income (currently ~7-8% APY) for long-term believers in the TON ecosystem. It supports network security and requires you to lock your tokens for a period.
What are the risks of trading TON futures?
Futures trading involves leverage, which can magnify both gains and losses. It requires a good understanding of market analysis and risk management techniques to avoid significant losses.
What is the future potential of the TON ecosystem?
With strong ties to Telegram’s massive user base and a focus on user-friendly blockchain services, TON has significant growth potential. Its continued development and partnerships make it an ecosystem to watch.