First launched in 2018, the TON cryptocurrency operates on a proof-of-stake (PoS) mechanism, which means that users stake a percentage of their assets in order to enable the verification process. The crypto has experienced a healthy surge in popularity and value over the last few years, sparking greater interest in it even among amateur investors.
For those looking to dip their toes into TON investment for the first time, we encourage a deeper dive into the subject through this comprehensive guide to TON, its history and its potential future. However, for a lighter look at some of the lesser-known aspects of the crypto, this article presents some facts about it of which you might not previously have been aware.
It stands for The Open Network
At conception, TON was initially intended to stand for Telegram Open Network, since the crypto was developed by the messaging platform Telegram. Its CEO Pavel Durov had hoped it could model itself on other success stories such as Ethereum (ETH) and Bitcoin (BTC), but with better scalability and speed.
However, a protracted court case involving the US Securities and Exchange Commission (SEC) saw Durov drop the project in 2020, despite having ploughed billions into its development. With many people keen to avoid all that work going to waste, a new version of the blockchain developed by Newton appeared, rebranding TON as The Open Network instead.
It’s endorsed by Telegram
Although Durov may have publicly distanced himself from TON in 2020 and the new entity does not have any official affiliation with Telegram, the latter has endorsed the former and supports its new direction. Durov willingly handed over ownership of the ton.org domain to Newton on Github and the TON name was transferred.
“When Telegram said goodbye to TON last year, I expressed the hope that future generations of developers would one day carry on with our vision of a mass-market blockchain platform,” explained Durov on Telegram. “So I was inspired to see the champions of Telegram’s coding contests continue developing the open TON project, which they rebranded to Toncoin.”
It broke processing records
One of the main aims of TON during its development phase – and one of the reasons why Durov wished to see it resurrected by other developers going forwards – is its vast processing capabilities. Indeed, in 2021, it was demonstrably proven to be able to handle up to 55,000 transactions per second (TPS).
At the time, that was a world record in terms of processing capacity. In fact, most of TON’s rivals are only able to process 1,000 or 2,000 TPS, while industry leader Bitcoin can only handle a measly seven TPS. Although the technology is improving all the time, TON is still clearly a frontrunner when it comes to speed and scalability of transactions.
It’s not just a cryptocurrency
TON might be most widely known for its Toncoin, which was recently added to the Telegram network, but it also has its fingers in a number of other pies, too. For example, it has recently entered the data storage industry, allowing node operators to host files of any size for other users, receiving payment in Toncoin in return.
Meanwhile, the TON Foundation has also revealed a $25 million Accelerator Programme with which it aims to fund new projects within its TON ecosystem. Companies can receive grants of between $50,000 and $250,000, as well as industry-specific mentorship and insight, in order to develop new apps and projects running on the TON blockchain. It’s believed that an emphasis on De-Fi ventures is preferred.
After appearing to be on its last legs following the SEC court case in 2020, the TON cryptocurrency is alive and well – and expanding all the time.
