Understanding Telegram’s TON Blockchain and Gram Cryptocurrency Unique Multi Blockchain Technology
TON (Telegram Open Network) Blockchain is the much-anticipated and user-friendly blockchain with the native cryptocurrency Gram. Telegram’s developer team headed by the Durov brothers has been working on the project since 2017.
Drawing its practicability from the Telegram Messaging app, TON Blockchain will offer internal payment services, file storage, DApps hosting, and secure, anonymous browsing. It will also provide light TON Wallets to all Telegram users and become the first mainstream- adopted cryptocurrency.
TON Blockchain plans to implement third-generation technology in blockchain to surpass Ethereum’s smart contracts and Bitcoins’ distributed ledger as the two pioneering decentralized monetary ecosystems.
It would serve people under oppressive governments by offering them a native money transfer service through the Telegram App and cutting states’ control over people’s money.
So with that in mind, let’s first look at the strengths of TON Blockchain, its features, underlying technology, promise for the future, and finally, its long-standing woes with regulators.
TON Blockchain Is a Proof-Of-Stake, Decentralized, And Independent Project Run by Its Community
Telegram is popular for its free, instant, and highly-secure platform with an enabled self-destruct sequence for old messages, cloud services, and group coordination for over 2000000 members.
Both individual and business users on Telegram appreciate its highest levels of discretion and end-to-end highly secure encryption that keeps personal and business messages private. This also makes Telegram the most popular messaging app in the blockchain and crypto community.
The updated TON Blockchain Whitepaper is a bit technical, but not to worry, as this guide contains a breakdown structure of all the things you ought to know about TON, including its native token, Gram, history, services, features, and launch date.
Crypto traders or holders value a new coin based on two key factors, its underlying technology and its purpose inside and beyond its ecosystem. So if you are interested in trading, transacting with, or holding Grams, here are a few things you should be aware of about its infrastructure.
1. TON Is An Open Source Project
It is independent of any form of centralized control. Telegram has taken some steps to emphasize how much of an independent community ecosystem the TON Blockchain is meant to be. It does not claim unique ownership rights or management of the network.
Additionally, to avoid a further cause of conflict, Telegram employees cannot participate in voting or validating the network or are obligated to buy any Grams.
2. Grams Are Utility Tokens
Grams are a medium of exchange inside the blockchain and cannot be considered investment products for gains or profits. As there is no affiliation between Telegram and TON Blockchain’s management, owning Grams does not in any way mean that the holder has special rights to any part of Telegram.
TON Blockchain uses the TON Wallet to store user’s Grams, and neither is integrated to Telegram Messenger, but there are plans to do so.
3. TON Blockchain And Grams Are Yet To Be Launched
This is a pending project with delays mostly caused by legal roadblocks rather than developmental infrastructure. Developers and investors have stated that the project is ready to launch as soon as they reach an agreement with the Court and SEC.
TON’s Third Generation Blockchain Technology Features the Highest Network Scalability
TON uses the Proof-of-Stake consensus algorithm that users “miners” to validate transactions. To become stakeholders, users will need to put down a crypto investment in the network, which rewards them with transaction fees.
It will securely handle millions of transactions per second and features a more progressive, unique multi-blockchain architecture. Once the blockchain reaches its full capacity to handle transactions, the network automatically splits in two in a process called Sharding to increase storage capacity.
The TON Blockchain’s new block creation mechanisms will also use a smart routing system to instantly exchange data between blocks.
This is unlike in other blockchain networks like Bitcoin, whose blockchain network will be tapped out after all the 21 million supply is depleted unless special updates are implemented on its blockchain.
The developmental process is divided into three phases, the TON Virtual Machine (TVM), TON Network, and TON. By 2018 September, almost 70% of TON was ready, with TON’s Beta Version limited access given to a few developers and the first official estimated launch date set for October 31, 2019.
TON’s ICO’s Success in raising $1.7 Billion Instantly Put the Project on SEC’s Radar
On FEB 13, 2018, the Durov Brothers filed a Securities offers an exemption for TON Issuers Inc. and Telegram Group Inc. with the US Securities Exchange Commission after accruing $850 Million from 81 investors.
The first ICO sale was conducted on January 29, 2018, for Both Bitcoin and Ethereum and included major crypto investors from both the US and Russia. It raised $1.7 Billion in two funding rounds, causing the third public sale to be dismissed after reaching its double target with the first two token sales.
After the closing down of the sale, which ran from January to March, the next months followed a high demand for the token sales, giving rise to many individual and brokerage deals.
In March 2018, the SEC opened a probe into technology companies over their ICO sales, and TON was among the subpoenaed projects.
The ICO aftermath that followed is majorly the reason for the two-year-long delays and launch reschedules since it landed itself of SEC’s crosshairs for alleged issuance of illegal token sales and presales.
How Much Is The Current Value Of Gram?
Even before Telegram completed its first developmental phase, there was much speculation and misleading information about token sales. It got so bad that Telegram has been forced to issue several warnings against such false affiliates.
In one such recent public notice, Telegram exclusively said neither Telegram nor any of its affiliates are currently involved in any public sales or presales of Grams.
The latest research update indicates an initial total supply of 5million that will double to 10 Billion in the next 35 years, for a projected inflation rate of 2 %. The ecosystem reserves 10% of the supply for incentives, while the developers hold another 4%, 500, and 200 million grams.
The true price is not yet determinable, as Gram is not yet available for public trading. On CoinMarketCap, TON is listed as an “untracked listing.”
However, Telegram developed the first inbuilt Gram Wallet, the BUTTON Wallet, to enable peer-to-peer sending of GRAMS inside the app and buy, sell, and trade of other cryptocurrencies.
SEC Filed Complaint against TON Blockchain Two Weeks before Its Scheduled Launch Date
In the crypto space, developers know very well that regulation anomalies with new projects are the norm. The involvement of financial regulators could break, make, or change the trajectory of the said project.
On October 11, 2019, two weeks before its official launch, SEC filed an official complaint against Telegram Group Inc. and TON Issuer Inc. to stop Telegram from allegedly offering illegal sales of digital asset securities or Grams.
Telegram also moved to court to request SEC be denied a further injunction to its project, claiming this to be unfair since SEC new months in advance that Telegram would have to refund its investors if it TON did not launch by October 31, 2020.
A week later, the NY district court postponed Telegram’s hearing on its injunction to TON Network and Gram to February 18, 2020. By this date, the developer team and investors had formed the TON Community Foundation (TFC), a nonprofit association that filed a friend of the court brief stating that the project is complete and only deterred from launching by SEC Lawsuit.
SEC still maintains its stand against TON’s cryptocurrency Gram being offered to the public until the current lawsuit is fully investigated.
How Close Is TON Blockchain To Launching?
TON Blockchain has had a turbulent roadmap. There are, however, key events that have happened since the very first and traceable mention of TON and Blockchain in a video advertisement on December 22, 2017.
The advert stated clearly that TON Network would launch in 2018 as a “fast, scalable, user-friendly cryptocurrency and blockchain platform.” It was supposed to award the Telegram App user base of more than 200 million active users with a TON Wallet, making it the most-adopted cryptocurrency in the world.
TON issued their latest update on TON Blockchain on January 6, 2020, which stated that Grams do not exist yet, not until after their launch, which will happen soon.
While SEC still holds its stand against offering Grams to the public, TON’s investors agreed last year to postpone the launch to April 30, 2020.
Facebook also planned to launch its similar ecosystem cryptocurrency Libra by the first quarter of 2020 but has had its high share of resistance from the US government officials and financial regulators. Libra, unlike Gram, is a stablecoin and is also said to be independent of Facebook.