TON Blockchain Explained: Development, Features, and Price Predictions for 2024-2025-2030

Toncoin has recently grabbed not only the crypto headlines but also became a top 10 crypto asset by market capitalization, sitting between Dogecoin and Cardano. 

In our article, we are going to talk about how the TON ecosystem developed and discuss the asset’s further outlook.

What is TON?

The Open Network aka TON is a decentralized computer network consisting of a layer-1 blockchain and several components with the aim of uniting the Web2 internet and blockchains. The team’s White Paper describes TON as “a huge superserver, intended to host and provide a variety of services”.

The mentioned components include TON Blockchain, TON Storage, TON Proxy, and TON Payments. To understand how TON works, let’s break down each piece of the ecosystem below.

TON Blockchain

The TON blockchain is the core pillar of the entire TON ecosystem representing a scalable layer-1 blockchain built as a “superserver” to support the creation and operation of dApps and smart contracts. 

TON is operated on a proof-of-stake (PoS) consensus mechanism, which means its stability and security is maintained by validators who stake Toncoin. Since the creation of the network, any changes and updates in it are possible only if 66% of validators reach a consensus.

The TON blockchain achieves remarkable scalability and processes millions of transactions per second through a unique multi-chain architecture. As outlined in its white paper, this structure consists of three key components:

Masterchain: this blockchain stores general information about the TON protocol, including the number of validators, active workchains, and the latest block hashes from each workchain.

Workchains: these are compatible blockchains within the TON network responsible for processing value transfer and smart contract transactions. Workchains further subdivide into shardchains.

Shardchains: these smaller blockchains handle data specific to a limited set of addresses. Shardchains within a workchain share the same block format and virtual machine as their parent workchain.

TON Storage 

Another key component of the TON ecosystem is a distributed data storage network called TON Storage. Launched in late 2022, it aims to offer a user-friendly and reliable alternative to platforms like Dropbox. 

While TON Storage utilizes technology similar to popular peer-to-peer file sharing like torrents, it offers a key distinction — data transfer occurs through the secure and private TON network. This provides a significant advantage in terms of user privacy and data security compared to traditional torrent networks.

TON Proxy 

One of TON’s significant achievements has been its commitment to maintaining the privacy and anonymity of its users. For example, a common problem with Proof-of-Stake networks is that participants reveal addresses that reveal the total number of coins being staked.

To solve this problem, a feature called TON Proxy was created to allow users to anonymously share information online. TON Proxy can be used to hide the identity and IP addresses of network nodes.

TON Payments

Launched in June 2022, TON Payments are built-in payment channels that can be used for instant off-chain transfers between users, bots, and different services within the TON network. Micropayments are ideal for small, on-the-go purchases like in-game items and API calls, thanks to their instant nature and lack of “gas” fees.

Timeline of TON development

The beginning of TON 

In 2018 the Durov brothers released a white paper for the Layer-1 blockchain Telegram Open Network (TON). The idea behind the project was to integrate with the Telegram messenger and offer an anonymous and secure alternative to traditional payment systems, free from government regulation.

At the time of TON’s announcement in 2018, Telegram was already one of the most popular messengers worldwide, and a significant part of the audience was already familiar with digital currencies, as the messenger was the main platform for communication and spreading news on crypto topics due to its anonymity and security.

Telegram’s ICO

To raise funds in 2018, Telegram launched a private sale of futures contracts that gave the right to acquire Gram, a native token later renamed Toncoin. The initial coin offering (ICO) was successful – the company raised $1.7 billion, making it the second largest ICO ever held — EOS still holds the top spot with $4 billion. More than 170 companies and private investors contributed $1.7 billion to the project.

SEC proceedings against Telegram

But, in 2019, the ambitious plans were disrupted by the U.S. Securities and Exchange Commission (SEC) with a request to suspend the planned distribution of Gram tokens to investors. The SEC argued that the offering violated U.S. securities laws.

After lengthy litigation, the SEC ultimately classified the project’s tokens as securities. Telegram agreed to return $1.2 billion to investors and pay an $18.5 million civil penalty to settle charges over an unregistered ICO.

New Chapter for TON 

In light of these challenges, in 2020, the Durov brothers left the project to avoid hindering the development of the Telegram messenger. The TON project’s code was then shared on GitHub, inviting the community to continue development as an open-source project. A small group of developers took over the project, which led to the establishment of the TON Foundation in May 2021.

Although Telegram itself is formally not involved with projects in the TON ecosystem, where Toncoin functions as the primary currency, the messenger team supports TON developers. For example, the messenger interface includes a cryptocurrency wallet that supports only Bitcoin, the USDT stablecoin, and Toncoin itself. Users can also activate an additional Ton Space wallet within the Telegram interface, facilitating interaction with online projects operating on the TON blockchain and tokens and NFTs issued on this blockchain.

Why Toncoin is up in 2024

As of April 29, 2024, Toncoin has solidified its position among the top ten largest crypto assets by market capitalization on CoinMarketCap. The coin’s price has seen significant growth this year, rising from $2 in January to its April all-time high of around $7. It is currently trading around $5.

While Telegram and TON are now completely separate entities, as previously mentioned, Telegram made a significant move in September 2023 by approving TON’s blockchain as the underlying network for its Web3 infrastructure. Additionally, in July 2023, Telegram introduced Wallet Pay, a new service for payments using Bitcoin, TON, and the USDT stablecoin. Last September, Telegram received an update that integrated the TON Wallet directly into the messenger’s interface. Notably, Telegram founder Pavel Durov has publicly stated that TON and Bitcoin are the only cryptocurrencies he personally holds.

Toncoin’s active growth began in February 2024 following the announcement of Telegram channel monetization using TON. On February 28, 2024, Durov introduced a new system for financial rewards in TON cryptocurrency. Starting in March, owners of Telegram channels from over a hundred countries became eligible to receive 50% of the revenue generated by advertisements placed within their channels.

The growth of the native TON token accelerated further in March when Telegram founder Pavel Durov gave an interview with the Financial Times, after which the altcoin price rose from $2 to $4. In the interview, Durov revealed that the messenger had received a preliminary valuation of $30 billion before a potential IPO.

On April 19, 2024, during the Token2049 conference in Dubai, Telegram’s CEO announced the launch of USDT on TON. This move was confirmed by Paolo Ardoino of Tether, who called Telegram the “perfect platform” to integrate cryptocurrencies and launch new applications. With rumors swirling in the media a week before the conference about the Telegram founder’s important updates, the price of the cryptocurrency reached its peak at $7. But then, after the end of the presentation, it fell to around $6 and below.

TON Price Forecast 2024-2025-2030

The future price of Toncoin, the native token of the TON blockchain, is a topic of much discussion. Several forecasting services offer optimistic outlooks for the coming years. Let’s take a closer look at what experts anticipate for Toncoin’s price in 2024, 2030, and 2035.

Coin Price Forecast, a well-known platform for its long-term cryptocurrency price forecasts, predicts a bullish year for Toncoin. They project the token will reach $12.48 by mid-2024 and climb to $24.48 by year’s end. Analysts at Coin Price Forecast expect the altcoin to reach $35.05 by 2025. Looking ahead, Coin Price Forecast expects Toncoin to reach a price range of $64.33 – $69.69 by 2030, representing a potential surge of over 1,100%. Their forecast suggests Toncoin could even exceed $100 by 2035.

Digitalcoinprice, another service offering crypto market analysis, also provides positive predictions. Their data suggests a maximum price of $12.28 for Toncoin in 2024 and $14.24 in 2025. For 2030, Digitalcoinprice expects a price band between $37.72 and $41.90.

CoinCodex analysts share the optimistic outlook, predicting a 229.24% increase for Toncoin, reaching $18.47 by May 25, 2024. Their forecasts for 2025 and 2030 remain promising, with prices reaching $23.13 and $26.13, respectively.

While most experts predict bullish years for Toncoin, Coinedition anticipates dips in its value in 2026 and 2029. Despite this, the TON value could hit $20 by 2024. Building on its momentum, the coin could see further increases and reach $25 in 2025. By 2030, widespread adoption could drive the value to $55.

Please note, that these are merely projections, and the actual price of Toncoin could deviate significantly. Conducting your own research is crucial before making any investment decisions.

Conclusion

Driven by recent positive developments and a record-breaking price in 2024, Toncoin emerges as a compelling third-generation blockchain token. Active internal development and the potential for widespread adoption, particularly through integration with the billion-user Telegram messenger, hint at a promising future.

However, the key to any blockchain’s success hinges on its real-world usefulness as a payment method. While integration with Telegram offers a significant advantage, Toncoin’s long-term trajectory remains uncertain. Project updates, broader advancements in blockchain technology, and overall market conditions will all influence its growth potential.

FAQ

Why is Toncoin up in 2024?

Toncoin surged in February after Telegram announced channel monetization with TON. Later in March price jumped again following a Financial Times interview with Telegram founder Durov, where he revealed a $30 billion valuation for the messenger.

Will Toncoin reach $10 in 2024?

According to most predictions, Toncoin might reach the range of $12-$20 by the end of 2024. Despite these predictions, these are merely projections, and the actual price of Toncoin could deviate significantly.