What Is Toncoin (TON)? A Beginner’s Guide!

Even before buying Toncoin, you need to know about Toncoin, right? Here is a brief description of Toncoin. 

Abbreviation	TON
Category	Cryptocurrency
Founder (s)	Nikolai Durob and Pavel Durov
Blockchain	The Open Network (TON)
Protocol	Proof of Stake (PoS)
Launch date	2018

Toncoin is a native cryptocurrency used for network operations, transactions, games, or collectibles built on TON. This decentralized blockchain network was initially developed by Telegram. This cryptocurrency is fast, secure, and scalable, created to support millions of transactions per second. This has been used in the network for transaction fees, staking, and as the base currency.  

Advantages and disadvantages of Toncoin

First, we will start from the positive side. The advantages include:

• Speed: Toncoin is the fastest blockchain network that confirms all the transactions made on the TON network within seconds. 
• Safety: TON employs the BFT consensus mechanism and the decentralized structure of the network which make it highly secure against attacks. 
• Scalability: Millions of transactions are processed per second by employing multi-level sharding. 
• Low costs: Transaction costs are low so it is best picked for microtransactions and daily transactions. 

Moving on to the disadvantage section. 

• Relatively new: This cryptocurrency is relatively new, it should gain more popularity and trust from the crowd. 
• Centralization of staking: Employing the PoS mechanism, large stakeholders may have more influence across the network. 
• Competition: High competition is happening between similar projects that focus on speed, scalability, and low costs. 

Now let’s go through its history. Are you thinking there is any significance for the history of Toncoin? Yes, it is very necessary to know the history since history gives the picture of the potential. 

• The Telegram Open Network (TON) testnet2 was launched in November 2019 with 5 million coins minted. A small fraction which is equivalent to 1.45% of the supply is distributed among developers and testers. 
• Telegram stopped its work on the TON Ecosystem in May 2020 after the SEC forbade Telegram from issuing Grams to investors. 
• A large volume of participants was suggested and then Testnet2 was promoted to mainnet in May 2021. Coins are allocated via Poof-of-Work (PoW) Giver contracts.   
• TON will expand the number of validators and coins involved in validation in June 2022.

Now, let’s check out how to buy Toncoin in India in just five steps.

• Step 1

Select INR from the list of currencies and enter the amount of INR. 

• Step 2

Choose a payment method and check the equivalent amount of TON you have received. 

• Step 3

Enter a Tocoin-supported wallet address.

• Step 4

Log in with your email address and verify the given information.

• Step 5

Make payment via payment methods such as Credit Cards, Google Pay, Apple Pay, Bank Transfer, and several others to instantly receive TON in the wallet. 

Use cases of Toncoin

Several roles are performed by Toncoin, they are as follows:

1. Payment method 

Peer-to-peer (P2P) transactions via TON enable safe and fast payments without incorporating intermediaries. 

2. Governance 

TON token holders can participate in the TON’s governance by voting on proposals that affect the platform’s development and future direction. 

3. Execute transactions

Transaction fees will be imposed on processed transactions, and these rewards are used to reward validators for validating transactions. 

4. Powering smart contracts

TON facilitates several functions within the network including powering the operation of DApps built on the TON blockchain. 

5. Incentives 

Participate in TON ecosystem activities and earn Tocoins. Several activities facilitated are contributing to projects, rendering services, or producing content. 

6. Staking 

Stake TON tokens and participate in network security. 

Also Read: Mainnet In Cryptocurrency: What It Is & How It Works?

Final thoughts 

The robust technology underlying TON, the potential for high transactions, and the strength of the active users on Telegram determine whether TON is a good investment or not. Its main focus is on decentralization and anonymity and also meets the expectations of crypto users. The risks involved in Toncoin are not so different from the cryptocurrency sector. As the project is in its initial stage, the risk factor will be a little more in Toncoin. Before heading into TON, conduct thorough research, and do not forget to consider the technological promises and associated risks. 

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