Cocoon became an integrated part of the TON platform because of the recent breakthrough related to AI in the digital world.  As AI is integrated into all of the daily applications we use, the enormous computational resources needed to operate AI have become a valuable and highly centralized resource. Now, a new project is rising in the Open Network (TON) community that is being supported by Telegram founder, Pavel Durov. This project is known as Cocoon; however, Cocoon is not an incubator; it is a completely decentralized marketplace for purchasing AI computing resources [1,2,5].

Cocoon was announced at Blockchain Life 2025. The Cocoon is an acronym for “Confidential Compute Open Network [2,4,5].” It has been created as a solution to what is considered one of the greatest barriers to the adoption of AI technology: access to large numbers of Graphics Processing Units (GPUs) [1].

A. Problem related to closed and controlled digital environments

As it stands today, most companies and developers seeking to deploy a complex artificial intelligence (AI) model rely upon one of just three tech giants (Amazon-AWS, Google-Cloud, and Microsoft-Azure) that dominate the market for high-performance computing [4].

The dominance by these few entities raises several concerns:

1. Expensive: The lack of competition and the high demand for their services create an opportunity for each of the providers to raise costs to consumers (i.e., developers).

1. Data Privacy Issues: Developers are required to trust the providers with running proprietary models (and therefore with access to that model's source code) or processing sensitive user data on these centralized systems [4].

1. Limited Accessibility: High costs for using the cloud-based systems limit the ability of start-ups and individual developers to innovate and create new applications and products.

B. Solution: Cocoon's “AirBnB for computing power” or A decentralized “Airbnb for GPUs”

A simple and powerful alternative is proposed by Cocoon; the idea of a "computing power Airbnb" is commonly used to describe it [1]. Cocoon is built as a two-sided marketplace based entirely on the scalable and performance-driven TON blockchain platform [5].

1. The Suppliers: On one end of the market are a global, distributed community of users who can be anything from a data center operator to a gamer who has several idle GPUs they would like to rent out for use in the Cocoon network [1,4].
2. The Consumers: On the other end of the market are AI developers, startup companies, and applications needing to run AI inference. These consumers can place their computation requests into the Cocoon network [5].

Toncoin ($TON), the native cryptocurrency of The Open Network, binds together the entire marketplace [2,4]. Developers pay for the use of the computing resources using Toncoin ($TON), and the owners of the GPUs receive Toncoin ($TON) as compensation for their contributions to the marketplace [4,5].

C. Better commitment to privacy, with “Confidential Compute”

    Confidential Compute is the Cocoon's most important core feature.

1. Traditional Cloud-based setups allow the cloud service provider to potentially view or use the Data that the user sends to the Cloud Service Provider [1]. The designers of Cocoon have designed it as an encrypted, secure platform for users to perform computations [4,5], so that none of the parties (including the GPU provider) can access the data or the AI models performing those computations, a type of "Confidential Computing" [3,4].

1. Users would be able to interact with AI-Powered Bots and Services within Telegram with a higher level of privacy than ever before; Developers would be able to Deploy High-Value Proprietary AI Models on a Platform such as Telegram without having to worry about someone stealing their Intellectual Property [4,5].

 D. Cocoon has transformed the open network in terms of utility:

The vast majority of blockchain platforms have been criticized for being of no practical use for their native tokens (other than speculative uses) [1].

Toncoin is now the foundational fuel for a growing Decentralized AI Economy, as Cocoon provides a completely new level of use cases for $TON [4,5].

Demand for AI Computation is increasing daily; therefore, the demand for $TON to fund that same computation will increase accordingly [2]. It creates an economic model that is long-term viable for developers and GPU providers as follows:

1. Developers will have to use $TON to acquire sufficient computational resources [4,5].
2. GPU Providers will receive $TON that they can either hold or sell [2].
3. Telegram’s large user base will be the first and by far the largest client for this network and will utilize Cocoon for additional AI functionality for their Mini Apps and Bot Ecosystem [3,4].

E. The aim of Cocoon:

As Cocoon is getting ready to be fully launched in November 2025, Cocoon will have to compete in a crowded market space. But Cocoon has an advantage. This comes from being on Telegram, which has a very large number of users. Therefore, Cocoon has a path for the adoption of many decentralized ventures that do not have access to [1].

Partnerships with major players, such as Nasdaq-listed AlphaTON Capital, have been announced, which will invest heavily in building out the necessary GPU infrastructure needed to support Cocoon’s use case [1].

Cocoon represents much more than simply another new platform; it represents a bold vision for the future of artificial intelligence (AI) [2,3,5]. It plans to tear down the “walled gardens” of big tech, creating an open, private, and more accessible marketplace for the one resource that will be the most critical over the next ten years [2,5]: computational resources. As Cocoon “nurtures the transformation” of the decentralized web, it has the potential to provide the “catalyst” for the emergence of a fully realized version of the decentralized web with the power of AI [2,3].

F. References:

[1] Atomic Wallet. Pavel Durov Unveils Cocoon Network on TON for AI. (2025, October 29).

[2] IndexBox. Telegram Announces Cocoon, a Decentralized AI Compute Network. (2025, October 29).

[3] Nasdaq. AlphaTON Capital Announces Strategic Investment in GPU Infrastructure to Power Cocoon Decentralized AI Network. (2025, October 29).

[4] Kazinform. Pavel Durov unveils decentralized Cocoon network as alternative to Google and Amazon with a focus on privacy. (2025, October 31). [5] Brave New Coin. Telegram Founder Unveils Cocoon: A New Decentralized AI Network on TON Blockchain. (2025, October 30).