Join us for a discussion about the Telegram Open Network, how it has been evolving, and why it may just be the thing the crypto industry needs today.
With something as innovative as cryptocurrency and blockchain technology, you would expect there to be widespread acceptance. Both possess a great amount of potential that could help improve security in the world. Not only that, but they could add another layer of self-governance that may further embellish that security. Adopting these systems into the mainstream appears to be the obvious course of action.
There is, however, a valid reason as to why its mainstream adoption has yet to occur. There has yet to be a currency backed by a consensus that appeals to the mass market. This issue is the primary reason for these pieces of technology not receiving widespread acceptance.
Regardless, there is a steadfast vision of a cryptocurrency and ecosystem that has the capability of meeting the masses’ needs. One that is able to satisfy the demands of millions of consumers. In 2018, a candidate for this exact cryptocurrency came about in the form of a multi-blockchain ‘Proof-of-Stake’ (PoS) system. The name of this platform is TON (Telegram Open Network). Its core purpose is to accommodate a new generation of both cryptocurrencies and decentralized applications (DApps).
Since its 2017 initial coin offering (ICO), the blockchain industry is paying attention to this system in a colossal way. At the time, Telegram was one of the first companies with a pre-existing and prosperous non-blockchain product to propose an ICO launch. Additionally, and more importantly, Telegram garnered acclaim in the crypto industry as the primary ICO community building and messaging platform.
Both Bitcoin and Ethereum have made names for themselves in the crypto industry. Bitcoin is what many cryptocurrencies aspire to be like and Ethereum is a reliable platform for token crowd sales. Yet, there is no standard cryptocurrency that is useful for the typical exchange of value for everyday lives. The blockchain ecosystem requires a decentralized correspondent for ordinary money . In other words, a definitive mass-market cryptocurrency.
The potential in existing cryptocurrencies are obvious, but they lack certain qualities that mass consumers are looking for. You can narrow the outstanding issues down to the following three:
- Bitcoin and Ethereum are incredibly important in the ecosystem, but they don’t possess the capacity to supplant Mastercard or VISA. They have limits, with the maximum amount of transactions being 7 per second for Bitcoin and 15 per second for Ethereum. These restraints lead to unsatisfactory speeds and expensive transaction costs.
- Recurring users that are beginning to engage with Bitcoin and similar technologies will often react in confusion. Specifically, when trying to purchase coins, send them out, or store them.
- There is a limit to the market of goods and services that you are able to buy with cryptocurrencies. Furthermore, the overall demand for crypto-assets primarily derives from the investors, not the consumers.
As is, blockchain technology is incredibly auspicious and enthusiasts of this innovation continue to praise it, but it’s still developing. The design is just too complex to appeal to a mass consumer audience. This means that there has yet to be a cryptocurrency or decentralized platform that receives mainstream acceptance. What’s more, solutions that are centralized remain as the dominant option in the market.
The ideal resolution
The exchange of value should be as easy a task as exchanging information is. Blockchain technology provides the quintessential foundation in order to make this vision a reality. For this system to achieve mainstream adoption, a cryptocurrency – as well as its fundamental blockchain design and ecosystem – requires the following:
- Speed & Scalability. This allows for the processing of millions of transactions per second. Moreover, it provides for millions of active users, as well as applications.
- Perceptive user interfaces. These will enable any common user to easily purchase, store, and transfer value. They can also utilize DApps in a considerably natural way.
- A user base that is engaging. This will function as the pre-existing critical mass that is integral to the ecosystem’s growth. In time, it will undergo an adoption by many users.
What this platform will provide
Telegram employs its proficiency in distributed data storage encryption to create TON. This network is a fast and scalable multi-blockchain framework. TON is, to some, a decentralized supercomputer and also a system that transfers value. When you combine the comparatively shorter transaction time with peak security, TON becomes a potential VISA/Mastercard alternative. It could very well be the ideal tool for the contemporary decentralized economy.
The team behind Telegram depends on its 10-year interface construction experience to build one that’s user-friendly for millions of people. It will conjure up light wallets, exchanges, and services for identification. All of this will allow users to support cryptocurrencies in a more intuitive manner.
Telegram Open Network will leverage its system consisting of a variety of communities to drive the demand and value for TON cryptocurrency. These groups include developers, publishers, providers of payment, and dealers. A budding economy immersive with goods and services sold for cryptocurrency will come to life. In fact, it shares similarities with WeChat’s fiat-centric marketplace, though it will not have the confinement of a centralized service.
What is Telegram Open Network?
It’s important to note that the Telegram Open Network – unlike other 2018 cryptos – isn’t a rehash of an ICO project. Moreover, it is not a rehash that exists due to the reconstruction of an existing blockchain. Rather, the TON features its own original chain, which is the ‘TON Blockchain.’ Similarly, it features its very own cryptocurrency, the GRAM coin. In addition, it has the TON virtual machine – specifically for smart contracts – and its own consensus mechanisms.
Concerning the platform’s native coin, GRAM coins are useful for many processes within the blockchain. These include fee payments, micro-payments, admission and access to DApps, and connecting ‘value’ to messages via the Telegram Messenger app.
The start of Telegram’s public token sale was initially very rocky. In spite of this, there’s noticeable potential for the TON, as well as the platform’s native coin. According to the Telegram Open Network whitepaper, the TON aims to incorporate both the messaging app and an array of other features. These notable aspects are ones that users who are knowledgeable of crypto, in general, may very well benefit from.
Micro-payments are among the uses TON could fulfill in cryptocurrency by way of the GRAM coin. On top of that, there is also a decentralized application marketplace and a peer-to-peer file hosting and sharing economy. All of these features can be found on their public blockchain.
A quick history outline
In 2013, a group of libertarians sought to sustain freedom by way of encryption. From this desire came Telegram Open Network, declaring not-for-profit goals and maintaining its strictly independent nature. Wikipedia was the role model for TON founders for years, so following in its footsteps, they have a .org domain. This is primarily to further emphasize its status of not being commercial. The physical foundation of Telegram illustrates the belief of its founders in a significantly larger decentralization.
Telegram utilizes a server design that is distributed in order to coordinate encrypted data across numerous independent server clusters. These servers span out across a variety of distinctive continents and areas of authority.
With the mixture of speed, encryption, and independence, it only makes sense that millions of users would be attracted to it. Within a few months after the launch, the amount of attention it garnered was monumental. From here, Telegram Open Network continued evolving, with an average of about 12 updates per year. By February of 2016, the platform had 100 million active users. On top of that, it was delivering up to 15 billion messages on a daily basis.
In October of 2017, 170 million monthly users joined Telegram and the platform was delivering 70 billion messages per day. The numbers of users and messages only continue to escalate as the years go by. As a matter of fact, on a daily basis, up to 500,000 people join Telegram. Furthermore, there are 200 million monthly active users on this platform as of March 2018.
With these impressive numbers, these users can potentially provide the critical mass that cryptocurrencies need to encourage widespread adoption.
Uses as a cryptocurrency
GRAMs are useful for payments pertaining to digital and physical assets that individual brokers sell within the ecosystem and on other Telegram Open Network projects. Adding to this, there are other situations where GRAMs are of use:
- TON nodes receive payment of commission (‘gas’) for processing transactions, as well as smart contracts.
- Validators (the nodes) depositing stakes that will be worthy of both validating transactions and also generating new blocks and coins.
- Validators receiving capital as a loan in exchange for a (preferably equal) share of the reward.
- The voting power that goes to supporting or opposing any alterations in the limits of the protocol.
- Payment for the services that apps provide that are built on the platform.
- The payment for storing data securely and properly in a decentralized fashion.
- Payment going for the registration of blockchain domain names and also hosting any TON-sites.
- The payment for concealing identities, as well as IP addresses, from certain viewers.
- A way for paying for skirting around censorship that local ISPs (Internet Service Providers) enforce.
Each of these services tends to be free for users. This is mainly due to how the owners of the application typically choose to cover the corresponding fees. Moreover, embracing a ‘freemium’ or a business model that draws from advertisements.
Libra is a platform that essentially wants to do the same thing that Telegram Open Network aims to do. According to their website:
“Libra’s mission is to enable a simple global currency and financial infrastructure that empowers billions of people.”
There are two key things that Libra aspires to create. One is a global digital currency and the other is a foundation allowing domestic and international financial transactions deriving from a friendly mobile interface. Furthermore, this interface will base its function on a blockchain architecture that achieves security, speed, scalability. With hope, at some point in the future, it will obtain full decentralization.
The TON is a platform that wants that same peak security and speed in their system, too. While the two are not exact copies of each other, the similarities in what they aspire for are noticeable. Does this mean we could expect something of a rivalry between the two? Well, it certainly is easy to immediately agree with that theory, seeing as how various other cryptocurrencies – whether intentional or not – are competing with each other.
It is entirely possible that Telegram Open Network and Libra may go down that same route. However, to state that this will undoubtedly be the case is a premature confirmation. Both are still in need of worldwide adoption, so time will tell if anything comes of this hypothetical competition.
With all the progress it is making and the potential it holds, Telegram could ultimately develop the TON ecosystem successfully. From here, they may eventually propel themselves towards mass cryptocurrency adoption.