How Does Telegram Use Blockchain Technology?

How Does Telegram Use Blockchain Technology?

By SimpleSwap | SimpleSwap Blog | 4 Jul 2023

Not only major exchanges, metaverses and P2P games can brag with their native coins or tokens, some social networks have them too. For example, Telegram messaging service is connected to the creation of the TON coin. But how can we use it in a messenger? 

In October 2022, Telegram launched its new project – a large blockchain marketplace called Fragment. All transactions on the platform are conducted in Toncoin (TON) cryptocurrency. Let’s see in detail what this marketplace is and what we can buy there.

What does Fragment do?

A new development by Pavel Durov's team is Fragment – a non-custodial platform managed by Fragment Corp. It is created for buying and selling usernames with Toncoin (TON). The developers claim that absolutely any registered user can freely, anonymously and safely purchase "digital collectible objects", in other words, NFTs.

The list of Fragment "goods" includes:

  • usernames for users or channels;
  • anonymous numbers;
  • subscription to Telegram Premium.

It is important to note that purchased items are non-refundable – you will have to get used to the new name if you do not want to lose money.


All transactions concluded on the platform are carried out in accordance with the terms of use. Security is protected by smart contracts on the TON blockchain. Ownership and identifiers are listed there.

According to Fragment’s terms, all rights secured by the blockchain cannot be canceled by either the platform or the Telegram messenger. But a channel or a user with a purchased name can be blocked if they violate the law or the rules of the messenger.

How does Fragment work?

Once upon a time, while creating a messenger, a development team reserved some of the usernames that had a convenient format for search engines. For example, four-letter based words like @game, @news, @bank, @base would garner millions of mentions if they were in the public domain. Now people can purchase them.

In order to become an owner of a beautiful (and potentially business-winning) username, a customer needs to:

  1. Register on the marketplace.
  2. Create a crypto wallet for Toncoin.
  3. Take part in the auction.

Yes, usernames are being sold in the classic auction format. There are starting rates that vary, depending on the length of the username (4 letters in the name costs approximately 10,000 Toncoin). If no one buys it on the first day, the amount of the initial bid will be reduced.

TON is responsible for the scalability and speed of transactions on the blockchain. It suits well for carrying out such decentralized sales. Moreover, don’t forget that Telegram is directly related to TON – its developers invented the language of its smart contracts.

Who needs Fragment?

Collectors. The lovers of unique digital content. They are ready to buy NFTs, virtual phone numbers of a unique format, etc. The Fragment’s item buyer becomes its eternal owner, who can dispose of it as he pleases: sell, donate, demonstrate to others or store. Also, a unique item can provide its owner with unique features and benefits.

Other consumers are entrepreneurs, because unique content is the key to big sales The more attractive and relevant the name of the product is, the more people will:

  1. remember
  2. buy
  3. tell others about it 

The creators of Fragment used these principles on the marketplace. Among the most expensive usernames are @news, @chat, @sber, @auto, @fifa, @meta. Anonymous phone numbers are also very popular. Among the most expensive are +888 8 888, +888 1111 1111 and +888 0000 0000.


Do not forget that Fragment is still a young platform, and it is still trying to solve different issues. For example, what if a user loses a Telegram account or a Telegram channel with a unique username? According to the terms, nothing will happen to the username, but it will not be useful either.

Ownership of the name is recorded in the TON blockchain, it will not be possible to “take it out” from there. Problems with this feature can arise in case of a system failure or error, as well as if copyright was violated during the creation of the username (for example, a brand name will be used).

Fragment is an interesting development and it is still developing. Maybe in the future Toncoin will get even more functions than it has right now. Do you have TON in your wallet? Have you ever bought something on the Fragment marketplace? Share your experience in the comments!

If you want to learn more interesting facts about crypto then check out our blog! You might like our articles “Blockchain Projects Enhancing Traditional Finance” and “How to understand the value of NFTs”.

The easiest way to buy, sell or exchange coins is to use SimpleSwap services.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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