What is Toncoin (TON)? How Does Toncoin Work?

Blockchain networks like Bitcoin and Ethereum can easily clog when there is a huge number of transactions waiting to be validated. These blockchain networks use a Proof-of-Work consensus mechanism due to which a massive amount of energy is used to validate the transaction.

However, Ethereum has recently started using a proof-of-stake consensus mechanism after observing the success of this protocol over years. Still, Ethereum needs to make some improvements to speed up the validation process.

Toncoin, on the other hand, uses a combination of proof-of-stake consensus mechanisms and sharding technology to process transactions faster.

What is Toncoin?

Toncoin is a layer-1 blockchain network dedicated to addressing the scalability issue of first and second-generation blockchain networks. It offers a more flexible infrastructure compared to other blockchain networks. This open-source network provides super-fast transaction speed with a reasonable fee.

The network was initially designed to support crypto payments through Telegram. However, the platform had to face some legal issues when it failed to report the sale of its GRAM tokens. The team relaunched the project as NewTon in 2020 after separating its ways with Telegram.

The new platform was designed to offer better scalability and operability. Toncoin enables users to build decentralized applications on its network. The users can purchase services and goods from these applications using the platform’s native token.

Toncoin is dedicated to becoming a leading choice for millions of users who want to conduct everyday transactions. The users can easily store and send their crypto tokens through an easy-to-use app. TON can easily process millions of transactions per second because it incorporates dynamic sharding and work chains.

Toncoin has the potential to become a key tool in the blockchain industry as it allows users to quickly exchange sensitive information with a reasonable transaction fee.

Features of Toncoin

Toncoin stands out among other cryptocurrencies as it comes with a range of advanced features.

Proof of Stake Consensus Protocol

Toncoin uses a proof-of-stake consensus mechanism for transaction validation. The users are required to stake their TON tokens if they want to participate in the validation process. The users can’t mine the TON tokens using the proof-of-work consensus mechanism. However, they can still receive rewards from the transaction fees depending on the number of tokens they have staked.

TON Proxy

TON blockchain has introduced a number of TOR-like networks and VPNs that enable users to access different apps without compromising their privacy. It also eliminates the censorship problems the users have to face in traditional apps.

TON DNS

TON DNS is similar to a social media handle. It means the users don’t need to remember strings of numbers and letters. They can easily access smart contracts, wallets, accounts, and other features with TON DNS. Most importantly, they can register usernames and domain names on the blockchain using this feature.

TON Storage

TON storage works like Dropbox because it allows users to save their data online with private encryption. It means that the user’s data isn’t controlled by a single entity. Corporations can also take advantage of this feature to serve their customers.

Smart Contracts

Toncoin provides super-fast on-chain transaction processing with its smart contracts. The network provides Ton Virtual Machine for the proper execution of smart contracts. Smart contracts play a vital role in protecting users’ data.

TON Wallets

Toncoin processes thousands of transactions requested by a huge number of unique TON wallets every day. Toncoin offers a range of custodial and noncustodial wallets for users. Noncustodial wallets are recommended for users who want to have complete control over their crypto assets.

The users can opt for custodial wallets if they’re looking for a simple solution. The users can choose between @cryptobot and @wallet if they want to use Telegram to send/receive a payment.

TON Apps

The developers can create decentralized applications on Toncoin. The users can search for the registered apps through the platform’s registry. StickerFace is one of the most popular apps available on TON. The users can create their own NFT using this app. The users can also use this NFT on other apps that are registered on the platform.

TON diamonds is another popular decentralized application available on TON network. The platform offers a range of other decentralized applications with a number of unique features.

How Does Toncoin Work?

Toncoin provides super-fast transaction speed because it consists of multiple subnetworks/shards. Thus, it distributes the transactions into small pieces and completes the verification faster than other networks. It ultimately helps with preventing a large backlog of unverified blocks.

The network uses a proof-of-stake consensus mechanism to reduce energy consumption. The users can either become a validator or nominators depending on the TON tokens they hold. TON network ensures the platform’s security by managing the validators and nominators through smart contracts.

The platform has designed a set of pools where nominators can lend their tokens to earn rewards from the platform.

TON Tokenomics

TON is the native token of Toncoin that is used to pay transaction fees on the blockchain itself and on the decentralized applications as well. A small portion of the transaction fee is transferred to validators as a reward. TON tokens can’t be mined through proof-of-work. With a circulating supply of 1.2 billion tokens, TON has a market cap of $2.1 billion.

It ranks among the 30 best cryptocurrencies in terms of market cap. TON has a total supply of 5 billion tokens that will be released through a rewarding process.

Conclusion

TON is a layer 1 protocol designed to facilitate billions of transactions. It uses the proof-of-stake consensus protocol and sharding technology to avoid the backlog of unverified transactions. Thus, it performs transactions faster than other blockchain networks. It offers a range of other features that make it stand out among others.

If you need more information about Toncoin, feel free to get in touch with us.