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TON TON

A web3 ecosystem for Telegram
Table of Contents

Introduction

The Open Network (TON) is an intricate and groundbreaking platform designed to redefine the interaction with blockchain and decentralized systems. At its core, TON features a flexible multi-blockchain platform capable of processing millions of transactions per second, with unique enhancements such as a “self-healing” mechanism and Instant Hypercube Routing, offering unprecedented speed, reliability, and scalability.

Surrounding this core are supporting elements like a dedicated peer-to-peer network, used for accessing the blockchain and sending transaction candidates, and a distributed file storage technology — TON Storage — designed to house archive copies of blocks and user files. Alongside these components, TON includes a network proxy layer known as TON Proxy, which provides anonymity and security by hiding the identity and IP addresses of network nodes.

Further enriching the platform is a Kademlia-like distributed hash table, coupled with a versatile platform for arbitrary services that enables user-friendly interactions through browser-like or smartphone applications. Complementing these features are human-readable naming through TON DNS, facilitating micropayments via TON Payments, and seamless integration with third-party messaging and social networking applications, making the technology accessible to ordinary users, not just early cryptocurrency adopters.

By weaving together these diverse elements, TON creates a cohesive and multifunctional ecosystem that extends beyond traditional blockchain functionality. It not only represents cutting-edge technology but also demonstrates a level of flexibility and accessibility that makes it appealing to a wide audience.


Market

TON presents several distinguishing features that set it apart compared to other blockchains. Traditional blockchains prioritize secure and transparent transactions — often at the cost of scalability, versatility, and user accessibility. In contrast, TON’s architecture is engineered for high scalability, with the capacity to process millions of transactions per second.

In terms of innovation, while many blockchains offer smart contract functionality and secure transactions, TON introduces unique mechanisms such as self-healing, meaning the network can automatically deploy a fix when it runs into an issue, Instant Hypercube Routing, and vertical scaling. These features enhance the network’s speed and reliability and future-proof it, which is not commonly found in standard blockchain designs.

Furthermore, the integration of various components, such as peer-to-peer networking, distributed file storage, and network proxy layers, makes TON more comprehensive and adaptable. While other blockchains may offer some of these features, the cohesive combination in TON adds to its robustness and functionality.

Security-wise, TON’s provisions for hiding identity and IP addresses go a step further than cryptographic security measures found in most blockchains, which are already considered top-notch. This can add an extra layer of protection, especially for high-stake transactions.

Lastly, TON intends to leverage its accessibility and user-friendliness to bridge the gap between complex blockchain technology and ordinary users. While other blockchains may be geared more towards tech-savvy users and early adopters, TON’s design with human-readable names, micropayments, and third-party application integration seeks to make the technology more inclusive.

TON faces competition from established blockchain networks like Ethereum, Binance Smart Chain, and others that have developed strong ecosystems around their platforms. While TON’s unique features, like self-healing blockchain and Instant Hypercube Routing, may set it apart — competitors like Ethereum that have a large headstart in the industry have a relative advantage in some areas like the number of active dApps, community support, and market recognition. However, the integration of various cutting-edge components in TON provides the network with a solid competitive edge that could help it close the gap very quickly.


Technology

The TON Blockchain implements dynamic sharding, allowing automatic subdivision and merging of shards based on transaction load. This dynamic approach to sharding offers flexibility and scalability over static methods, adapting to changes in demand.

TON is structured to provide multiple workchains, but initially, only one, Workchain Zero, is utilized. This workchain is employed for TON smart contracts and coin transfers, serving as a foundation for most applications’ needs.

Blocks in the shardchains and masterchain are generated approximately every five seconds, leading to very short transaction confirmation times. The new blocks of all shardchains are created nearly simultaneously, and the masterchain follows around one second later.

A unique feature of TON is the tight coupling of shardchains through the masterchain. By incorporating shardchain blocks into the masterchain, the system ensures that transactions and messages can be used across shardchains quickly. This is in stark contrast to loosely coupled systems and contributes to TON’s unprecedented performance.

In TON, the last masterchain block’s hash determines the overall state of the system, which allows for simplified monitoring of the network. However, the system state also considers other relevant factors like the contents of shardchain blocks and their interaction with the masterchain. The network also relies on a Proof-of-Stake (PoS) approach with validators who deposit stakes to participate in block generation. These validators are assigned to shards in a pseudorandom manner, and consensus is reached using Byzantine Fault Tolerant (BFT) protocols.

The integrity of the system is maintained through accountability measures for validators, who may be punished for proposing invalid block candidates. Additionally, validators can be part of multiple subsets, running validation and consensus algorithms in parallel, thus enhancing efficiency.

The TON Blockchain’s technology is characterized by innovative sharding, block generation, coupling, and consensus mechanisms. The dynamic nature of shardchains, tight coupling through the masterchain, and robust PoS consensus system uniquely position TON as a platform designed for high performance and scalability.


Tokenomics

The TON Coin is the main currency of the TON Blockchain, used for various functions like deposits, transaction fees, and gas payments. The initial total supply is limited to 5 billion TON Coins, with each Toncoin subdivided into multiple units, ranging from nanotons to gigatons. Similar to how one Bitcoin is subdivided into millions of satoshis.

This supply will increase slowly through staking rewards given to validators who maintain the network. Validators receive rewards equal to approximately 20% of their stake per year. The slow increase in supply also ensures that inflation is controlled at a rate of 2% per year. If this rate continues, the total supply of TON Coins will double to 10 billion in 35 years.

The supply of Toncoin is carefully regulated to keep inflation in check and ensure sustainable growth of the ecosystem. By initially restricting the total supply of Toncoin and then gradually increasing it through mining rewards to validators, the platform prevents an oversupply of tokens that could lead to a decrease in its value. This strategy helps to preserve the scarcity and value of Toncoin over time.

Additionally, a mechanism to burn tokens serves as a countermeasure to controlled growth and inflation. If validators act dishonestly, they are penalized, and a portion of their tokens is permanently removed from circulation by burning. This not only punishes dishonest behavior but also decreases the overall supply of Toncoins, acting as a deflationary force that counterbalances the controlled inflation resulting from mining rewards.

The balanced approach to supply, combining controlled growth with potential burning, contributes to the platform’s long-term stability and growth. The flexibility in transactions, clear incentives for validators, and penalties for misbehavior create a system that fosters trust and collaboration. The combination of inflation and deflation mechanisms, along with the transparent structure of supply and rewards, ensures that the platform remains resilient and continues to evolve.


Audits & Security

TON was recently subject to an exhaustive security audit by CertiK. Emerging from the audit, the network displayed a laudable overall security score of 92.14 — placing it in an enviable 27th position, thereby ranking in the upper 10% when compared to its counterparts.

In more specific categories, TON’s market stability is particularly robust, standing at 95.58. This is a clear reflection of its strong market presence and reliable performance metrics. Additionally, it boasts a community trust score of 93.71, which underscores the project’s integrity and its positive reputation among stakeholders.

General Performance Metrics:

  • Security Score: TON possesses a commendable overall security score of 92.14, placing it in the top 10% and ranking it 27th on the assessment scale.
  • Market Stability: The market stability stands robust at 95.58, suggesting the project’s financial steadiness.
  • Community Trust: With a score of 93.71, TON has gained substantial trust within the blockchain community. Their Twitter account (@ton_blockchain) is extremely active, with a following of over 208,375.
  • Code Security: The project has a high code security score of 95.01.
  • Operational Resilience: At 92.05, TON has displayed strong operational durability.
  • Governance Strength: TON’s governance strength has been rated at 90.62, putting it in the top 20% of entities assessed.
  • Fundamental Health: Although slightly lower than other metrics, the fundamental health score still stands strong at 82.22.

Code Audit History:

  • A total of 6 audits have been performed on TON, with the latest delivered on Jan. 19, 2023.
  • From the issues detected, one major issue related to centralization was acknowledged, four medium-severity logical issues (two resolved, two acknowledged), and several minor and informational issues mostly related to coding style.

Website and Network Security:

  • The website scan indicated high network security with no immediate threats detected.
  • Application security requires attention in some areas, including missing security headers.
  • DNS health remains high, with just one attention point concerning a missing DKIM record.

Governance Analysis:

  • Governance scans indicated potential attention required concerning mint functions in contracts and an absence of ownership renouncement. CertiK did not specify the mint function. The top 10 token holders possess 70.75% of the token holdings.

Market Analysis:

  • The token price currently stands at $1.77, with a 24-hour volume of roughly $29 million. The market cap stood at approximately $6 billion, while its fully diluted market cap was a little over $9 billion as of Sept. 6. The token hit an all-time high of $4.5 in 2021.

TON has displayed a commendable performance in most of the evaluated metrics. While some areas demand attention, overall, the project showcases resilience, trustworthiness, and stability in the blockchain sphere, according to CertiK.


Product Roadmap

TON is planning several key enhancements in the coming months, focusing on various aspects of its network. To improve scalability and speed, the network is preparing to showcase its capabilities in handling large-scale applications and transactions. This aligns with the development of sharding guidelines and tools, which will further boost network efficiency by dividing the blockchain into smaller, manageable shards.

TON is also working on slashing optimization, ensuring penalties for malicious or non-performing validators are fair and effective in maintaining network integrity. Planned updates to the elector processes and network configuration settings are aimed at keeping TON flexible, secure, and aligned with current technological standards.

The introduction of extra-currencies is another major step, as it will allow integration with other cryptocurrencies or tokens within the TON ecosystem, providing more transaction options and attracting a broader audience. Lastly, TON aims to build bridges with leading cryptocurrencies like Ethereum, Binance Coin, and Bitcoin, enhancing seamless transfer and interoperability between these networks and TON. This strategic expansion will contribute to the overall liquidity and efficiency of the decentralized finance ecosystem, positioning TON as a versatile blockchain network.


Risks & Opportunities

Opportunities:

  1. Advanced Scalability Solutions: TON’s ability to dynamically adjust the number of shards offers the potential to efficiently handle increased transaction loads, making it an attractive platform for various businesses and developers.
  2. Rapid Transaction Processing: With blocks generated approximately every five seconds, TON can deliver quick transaction confirmations. This may appeal to applications requiring immediate transaction validation.
  3. Energy-Efficient Consensus Mechanism: By utilizing a Proof-of-Stake system that includes Byzantine Fault Tolerance, TON has the potential to offer secure and energy-efficient consensus, a feature that may distinguish it from more traditional blockchain systems.
  4. Enhanced Cross-Shard Communication: TON’s unique approach to tightly linking shardchains allows for seamless intercommunication between different parts of the system, paving the way for the creation of sophisticated decentralized applications.

Risks:

  1. Complexity Issues: TON’s intricate design involving dynamic sharding and tight coupling could increase the system’s complexity. This might make maintenance, development, and comprehension more challenging, possibly affecting its growth or leading to unexpected technical problems.
  2. Regulatory Challenges: TON, like other blockchain initiatives, may encounter regulatory hurdles or compliance difficulties. Changes in legal frameworks could pose unexpected obstacles for the platform.
  3. Potential Security Flaws: The novelty and complexity of TON’s design might leave it susceptible to undiscovered security vulnerabilities, despite measures taken to ensure the system’s integrity.
  4. Competition and Adoption Barriers: Success for TON depends on its acceptance by a diverse audience, including developers, businesses, and individual users. Competition from well-established blockchain platforms may impede TON’s growth if it struggles to set itself apart or offer clear advantages.
  5. Economic Alignment Concerns: Crafting and maintaining the alignment of economic incentives for all participants is crucial for TON’s long-term stability. Any missteps in this delicate balancing act could result in systemic issues.

TON’s future presents a compelling blend of promising opportunities, enabled by its technological innovations and significant risks that arise from its complexity, regulatory environment, competition, and the intricate design of its economic models. Its success or failure in the near term will hinge on how well these opportunities are leveraged, and risks managed.


Conclusion

The TON blockchain platform stands out in the market with several distinctive technological features. Its dynamic sharding technology allows the automatic splitting and merging of shards, enabling the system to adapt to changes in transaction load, offering a scalable solution. The ability to generate new blocks approximately every five seconds, coupled with the innovative use of a tightly coupled system, enables rapid transaction confirmations, setting it apart from loosely coupled systems like EOS. Additionally, TON’s Proof-of-Stake (PoS) approach with Byzantine Fault Tolerant consensus promises an energy-efficient and secure method of block validation.

TON’s emphasis on dynamic scalability, rapid transaction processing, and enhanced cross-shard communication positions it as an attractive platform for various applications. The novel approach to interconnecting shardchains may lead to unprecedented performance in decentralized applications. However, the system’s complexity might present risks, such as potential security flaws or increased challenges in maintenance and development.

In conclusion, TON’s unique technological framework showcases its potential to become a significant player in the broader cryptocurrency market. Its success will likely depend on the team’s ability to leverage its technological innovations, foster strategic partnerships, navigate potential risks, and continue progressing in development. If executed well, TON could redefine standards in the blockchain space, setting new benchmarks for performance and efficiency.