Toncoin

Blockchain technology is the king in the world of cryptocurrency. Without this decentralized ledger, the world of crypto as we know it today would not exist. The tech organizations promoting encryption are likely interested in the idea that the blockchain allows people privacy.

Telegram messaging app is one of that platforms. In 2018, the news that Telegram created a blockchain named Telegram Open Network was not surprising. That said, Telegram’s initial scheme, which would have involved a native token called gram, was banned in March 2020 by the US Securities and Exchange Commission (SEC), the SEC said that the sales of the digital token would constitute securities offerings with no registration exemption available.

Telegram officially gave up on the project, but two developers were on hand to save the day. Anatoliy Makosov and EmelyanenkoK took over the development of TON through an open-source community called Newton. The congregation voted to launch fully within a year and renamed the Newton community The Open Network (TON) Foundation.

To quote the project’s whitepaper: “The Open Network (TON) is a fast, secure, and scalable blockchain and network project, capable of handling millions of transactions per second if necessary, and both user-friendly and service provider-friendly.”

The community-led project aims to deliver a highly scalable blockchain network that can process transactions cheaper and faster than other networks, such as Ethereum (ETH). It also plans to develop the network into an ecosystem that can provide decentralized storage, an anonymous network, a Domain Name System (DNS), instant payments, and other services.

Every blockchain needs to have its native crypto, and The Open Network has the Toncoin, also known by its ticker handle of TON. This coin facilitates transactions such as rewards for staking and validating on the network.

It is important because The Open Network uses a Proof-of-Stake (PoS) consensus mechanism. People can add blocks to the blockchain and earn rewards based on how much TON they hold. People can also vote on changes to the network, with the weight of their vote again based on how much TON they have.