Telegram is an instant messaging service similar to WhatsApp but with better privacy. Recently, It garnered the mark of 200 million users. And it is launching Telegram Open Network (TON or Telegram ICO) which will be integrated with the messaging application.
Need for TON
Existing blockchain architectures have scaling issues. The transaction capacities of the two most popular cryptocurrencies Bitcoin and Ether are far from that of Visa or MasterCard networks. TON aims to address that issue.
The TON will have a main chain that can have a maximum of 292 accompanying blockchains. And the network can process millions of transactions per second.
The TON blockchains will split and merge without any manual intervention depending on the network load. This ensures network scaling based on the transaction volumes. As the waiting time for transaction times is minute, the transaction fees don’t go up which is often a problem in Bitcoin network.
The TON uses instant hypercube routing mechanism to prevent latencies in communication among the multiple blockchains. Even when the number of blockchains increases rapidly, the network will never slow down.
Proof-of-Stake consensus mechanism is employed using a version of Byzantine Fault-Tolerant protocol. That means you have to stake some fund If you want to start mining the TON token.
In Bitcoin network, a soft fork occurs when a significant number of nodes accept one block, and remaining nodes accepts another block. And there will be split in the chain happens to create two temporary child blockchains. As the time progresses, and more blocks added, the child having the highest number of blocks will triumph. But this situation is unlikely with TON Network as it allows to build a new block on top of a block that has been proven incorrect.
The platform consists of a decentralized storage module that serves cloud storage purposes as Dropbox does. And also provides TON proxy which mimics the functionalities of an anonymous network like Tor or I2P.
Besides, it provides all the basics to browse its network like World Wide Web, and one can deploy smart contracts and decentralized applications that are smartphone friendly. Also, the platform introduces a DNS mechanism, not only to improve the browsing experience of the network, but to assigns readable names to smart contracts, network nodes, and accounts, etc.
The platform also provides a mechanism for off-chain transactions that will be as secure as on-chain transactions. Moreover, all these tools can be integrated into any third-party social network and messaging application.
So, in the TON ecosystem, one can sell and buy digital and physical goods similar to that of eBay or Amazon. And a registry will be available that contains all the decentralized services provided on the platform.
The TON token also has another name Grams. And it can be used for everything from paying transactions fees to availing various services available on the platform. And you have to wait until second quarter of 2019 to see all the promising features of the Telegram Open Network.
The total supply cap will be 5 Billion coins. And 44% of the total tokens will be sold.
The first round took place in February which rose 850 million USD from 81 visitors. And the second round occurred in March; it raised another 850 million USD from 94 investors. And the speculations are that the company will seek to raise more funding. Though, the minimum required amount of investment is half a million USD in the first two stages of ICO. And its 100,000 USD for friends and families of the British Virgin Islands based company.
Once its lunched, You would probably be able to get the Telegram ICO in any of the this exchanges platforms.
Even when the cryptocurrency market had not performed well, the Telegram ICO has attracted the eyeballs of investors.
On the other side, Telegram has wide popularity in Iran. And the Iranian government is worrying that the new cryptocurrency might be a potential threat to the local currency Rial and might ban the messaging app.