On May 30, 2019, Telegram introduced a simplified version of the platform. Initially, the TON project had to be implemented before October 31, 2019. However, it has some problems with SEC. Investors decided to wait for the launch despite all the negative news.
The architecture of the TON platform contains several levels of protection against attempts to establish any state regulation over it. What other features does the project have, and how will it be implemented? What is GRAM? When will GRAM coin sales begin? Find out the answers to these questions in the new article by Changelly!
Telegram Open Network Development History
In 2018, Telegram announced an ICO (Initial Coin Offering) to terminate it shortly after that. Telegram had already raised enough capital in private financing rounds. Investors provided a whopping 1.7 billion in Telegram’s crypto network.
Already at the beginning of 2018, unknown scammers tried to fool Internet users by offering them to buy the Telegram messenger with the GRAM cryptocurrency, which did not exist yet. The letter, allegedly signed by the creators of the Telegram Open Network (TON) blockchain system, contains a link to the fake project website. Attackers suggested users register on it and be the first to purchase 30 thousand GRAM tokens for $5 thousand.
The Letter from TON Scammers
In February, Pavel Durov reported to the US Securities and Exchange Commission (SEC) on attracting $850 million from 81 investors.
In March 2018, Telegram raised $ 850 million from 94 investors in the second round of closed ICO. Already in May, it became known that Telegram refused to conduct public ICO.
Telegram launched in test mode its blockchain platform Telegram Open Network (TON) in late autumn last year. At that time, the TON Virtual Machine (TVM) smart contract mechanism was 95% ready. The development of the protocols and network of the TON blockchain has also been completed.
In March 2019, launched by the cryptocurrency exchange Xena Exchange, the derivative for the Gram token for the month rose in price from $2.2 to $8.25. The price increase is due to the interest of buyers in the project of Pavel Durov.
In August, investor patience began to run out. Investors in the Telegram Open Network (TON) ICO campaign began to get rid of project tokens by selling them on the secondary market. The price for one Gram token in the secondary market ranges between $1.60 and $2. The benefit for sellers is obvious, given that during the first and second rounds, the cost of the coin was $0.37 and $1.33, respectively.
At the same time, following the agreement, investors of the TON ICO campaign are forbidden to sell or otherwise transfer the rights to tokens until the network officially launches. Violation of this condition may lead to the cancellation of allocation so that buyers in the secondary market risk, not seeing the purchased tokens.
In August, it became known that the non-custodian multicurrency crypto wallet Button Wallet added in test mode support for the Telegram Open Network (TON). The service offers for free to users who activate the application 6.6 Gram test tokens.
In early September, the Telegram Open Network developers reached the final stage before the full-scale launch of the project, introducing software for nodes and a block browser for the test network.
In October, the U.S. Securities and Exchange Commission questioned the legality of the project and demanded a stop on the TON messenger blockchain project, as well as a ban on the distribution of Gram tokens. The regulator considers them to be unregistered securities.
Telegram did not agree with the position of the regulator, stressing that they registered duly closed placement of tokens that are not securities. However, the company decided to postpone the launch of the blockchain project.
Telegram investors refused to demand a refund and agreed to postpone the launch of the platform until April.
The developers of the Telegram Open Network (TON) network published the first version of the rules for using the Gram token wallet, in which the participation of the Telegram messenger team in the development of the project was officially confirmed for the first time.
The messenger currently is highlighted by the possibility of private-encrypted communication, speed, ease of use, security, and free, global availability.
Telegram wants to solve the problems of current blockchains. The Telegram Open Network exceeds current blockchains in terms of speed, scalability, user interface, and many users. These features are associated with very low transaction fees and high security so that TON can be considered a genuine alternative to VISA or Mastercard.
The Telegram team is highly experienced. Since its foundation in 2013, they have not only been able to create an amazing product but have also made it suitable for mass production. Building a user base of over 200 million users in just five years is very commendable.
Telegram’s blockchain plans are very ambitious. TON not only becomes a cryptocurrency but a complete ecosystem. The TON Wallet will be used as the starting point for payments for many goods under services, as we already know in China from WeChat.
To make it into the TON team, you should win in the world’s best programming competitions or take first place in one of the telegram’s nationwide multi-level coding competitions, as each of the current members of the team did just that.
The core team members have ten years of experience creating scalable projects for tens of millions of users. Before setting up Telegram, they founded VK, the largest European social network with more than 100 million active users, which still has a dominant share of its local markets.
The team specializes in the development of secure data storage engines. This team has individually developed all the software used on 1,000 telegram servers.
The founders of TON are Nikolai Durov and Pavel Durov.
Telegram Open Network Components
Telegram Open Network consists of the following elements:
- TON Storage is a distributed storage of large volumes of files and data (as, for example, YouTube, only in a peer-to-peer network). Will support Torrent technology and smart contracts;
- TON Proxy is a proxy platform that will be used to anonymize the identity of users and the IP addresses of TON nodes;
- TON Services is a service for integrating dApps and web browsers;
- TON DNS is a platform for naming accounts, nodes, services, and smart contracts;
- TON Payments is a platform on which it will be possible to conduct micropayments from user accounts to addresses of other services.
Let’s take a closer look at the essential features.
TON Storage is a storage of the data that is implemented decentrally on a lot of nodes. These can only be called up by the user-to-user TON network and are distributed decentrally as with torrents. This makes it possible to run a kind of decentralized Dropbox on which even huge files such as videos can be stored.
The TON Proxy allows inserting an anonymous layer that hides the identity and IP addresses of TON nodes. This layer can be used for decentralized VPN services and a blockchain-based TOR browser alternative. This option strengthens anonymity and privacy.
Gram (GRM) Coin Review
The heart of GRAM is its platform called Telegram Open Network, or TON for short. The platform will have a scalable and flexible blockchain architecture consisting of the main blockchain and up to 2^92 accompanying blockchains.
The key technical features of TON Blockchain, which is expected to process millions of transactions per second, are listed below:
- Infinite Sharding paradigm. This feature is necessary for extremely high scalability. The TON Blockchain can automatically split and reconnect to accommodate changes. New blocks can be quickly mined at any time, which will not trap any transactions so that popular services on the blockchain do not clog the network.
- Proof-of-Stake consensus algorithm. The Telegram Blockchain uses PoS as a consensus algorithm. There will be Validators Nodes that will guarantee independence and decentralization. The computing power of the nodes is to be optimized by the Telegram code so that transactions and Smart Contracts (as with Ethereum) can be carried out with increased efficiency and speed.
- Instant Hypercube Routing. The TON Blockchain uses smart routing mechanisms so that transactions between several telegram blockchains always harmonize with each other optimally. The time, which requires routing between blockchains, scales logarithmically and thus allows more users to speed up the transactions.
- 2-D Distributed Ledger. TON can place new blocks on already existing incorrect blocks. As a result, splits, so-called blockchain forks are avoided. This self-healing mechanism saves effort and guarantees that transactions made are not ineffective due to errors.
The initial supply of Grams is 5 billion or 5 Gigagrams. One Gram is subdivided in 1,000,000,000 of nanograms or nanos.
Gram token units are:
- Nano (nGram) equals 0,000000001 of 1 Gram
- Microgram (mGram) – 0.000001 of Gram
- Milli – 0.001 of Gram
- Gram (GRM) is a 1 Gram
- Kilogram (kGram) – 1,000 Grams
- Megagram (mGram) – 1,000,000 Grams
- Gigagram (gGram) – 1,000,000,000 Grams
Telegram Coin Future Use Cases
The TON white paper specifies quite concretely the planned use cases:
- Fees (gas) are sent to the TON Nodes (Network Validators) for processing transactions and executing Smart Contracts.
- GRAM Tokens deposited on TON nodes are necessary to run a TON node in generall.
- With each GRAM token, you also have codetermination right in elections, how to proceed with the network.
- Users can pay with GRAM for apps on the platform (TON Services).
- Users will be able to pay with GRAM for the safe and decentralized storage of data (TON Storage).
- Purchase of Blockchain-based Domains (TON DNS) and Hosting Services.
- GRAM can be used to hide the identity or IP address.
Unlike Libra coin, recently announced Facebook stablecoin, the price of Gram is not tied to any fiat currency and can be freely traded on cryptocurrency exchanges. However, Telegram wants to keep at least 52% of Gram total supply in circulation to prevent the token price from speculative manipulations. 4% is allocated for the team to support the development in the next four years of the vesting period. Therefore, only 44% of all tokens will be sold to the public.
There will be a special TON Reserve institute to maintain the Gram price-stable. It is a kind of central bank operating as a smart contract, under the control of the TON Foundation, a non-profit organization managing Telegram Open Network.
According to the documentation, the initial price of the token will be equal to 0.1 USD. The further cost of each new Gram put into circulation will be 1 billion higher than the previous one:
p(n) ≈ 0.1 · (1 + 10−9 )n USD
When the exchange rate falls below the level set by the formula, TON Reserve buys out tokens, and when it grows, it sells. Attempting to reduce the volatility of the Gram tokens for comfortable use inside the platform sounds like a good idea.
Proof-of-Stake & Mining Rewards in TON
The consensus in the Telegram Open Network is achieved through the Proof-of-Stake algorithm. According to its mechanism, the mining process participants could be nominators (i.e., mining pools), validators (miners running a full node) or collators (a special node that may outsource some unnecessary work from validators).
You need to maintain a running node to validate transactions and create new blocks. These are specially configured server with a reliable and high-speed Internet connection and large disk space. At the same time, the nominator does not have to be the one who runs the node and act as a crowdsourced fund and delegate the deposits to the actual validator with a running node.
At the start, there will be only 100 validators chosen each month by the most significant amount of Grams staked. If the blockchain requires more validators later, the number of validators could be adjusted.
By securing the TON blockchain being a validator, you’re able to earn Gram tokens with a profit of approximately 20% of your initial stake annually. According to the whitepaper, 10% of the total supply will be tied to the validator stakes, although the percentage number can be changed at any time at the protocol level if necessary.
According to Dr. Nikolai Durov’s assumptions, this will provide an inflation rate of 2% per year and double the total supply of grams up to 10 gigagrams in 35 years. In essence, this inflation is a payment made by all members of the community to validators for maintaining the system in working condition.
As opposed to inflation, there will be some deflationary impact, since ineffective validators will be fined, and a substantial part of their stake reserved in Grams as a reward for work will be burned. The one who finds a ‘misbehaving’ validator earns a portion of the transaction fees that validator couldn’t manage to validate.
At the time of the expected launch of the main network of the project, the TON wallet will be available as a Standalone application without integration with Telegram Messenger.
In this regard, it is expected that TON Wallet will compete with any other wallet applications provided by third parties.
In the future, the company may introduce a TON wallet in Telegram Messenger, however, the depth of this integration will depend on the laws and government regulations.
Telegram Open Network Latest News
The Telegram team published information regarding the Telegram Open Network (TON), stressing that the blockchain platform will be an open, decentralized and non-controlled company.
The Telegram blog says that there are many rumors and speculations around the project that the company will not comment on. However, the project considers it important to clarify several aspects while its team is working to bring TON in compliance with all laws.
- Gram coins still do not exist, you can buy or sell it only after the launch of the TON network. The company warns about fake token sales.
- The network will be decentralized and publicly available. After its launch, Telegram will have no obligation to support the platform or create any applications for it.
- Telegram will not be able to control the blockchain and ecosystem after they are launched.
- Buying tokens will not mean that their holder owns part of the company and can count on generating income. “Gram does not give their holders any special rights, just as owning a euro does not give you a share in the EU.” Thus, the company emphasized that Gram is not an investment product, but only a means of exchanging value between users in the TON ecosystem.
- Cryptocurrency transactions are risky and fraught with losses, including due to many external factors.
Telegram has already raised more than $1.7 billion in 2018 in a private round of financing to develop one of the best blockchain ecosystems. Perhaps, the blockchain and cryptocurrency launch will bring a lot of hype and immediately enter the top 20 in market capitalization.
The whole world is waiting for the Telegram Open Network release. Our team will be delighted to have Gram among our platform’s coins.