CGV Insights: Exploring the Technological Breakthroughs and Future Opportunities of TON

TL;DR

• Tracing the Journey of TON: In 2018, the Durov brothers, founders of Telegram, set out to create a proprietary blockchain called the Telegram Open Network (TON) to cater to its vast user community. By conducting an Initial Coin Offering (ICO) for its $Grams token, TON successfully raised over $1.7 billion. However, in 2019, a lawsuit from the U.S. SEC forced Telegram to halt its development plans for TON. Despite this setback, between 2020 and 2021, the NewTON team, which has now become the core team behind TON, revived the project using open-source resources and rebranded it successfully. The Open Network .
• Key Features of TON: Designed for extensive user communities, TON stands out with its use of advanced sharding technology, which allows multiple chains to process transactions simultaneously, often referred to as the ‘blockchain of blockchains’. Its structure consists of three main layers: the masterchain, workchains, and shardchains. The masterchain acts as the control center while transaction processes are handled by various workchains and shardchains. Furthermore, TON's sharding system is designed to be dynamic, allowing shardchains to merge based on interaction patterns between user accounts.
• Understanding the Network Architecture of TON: Communication among TON nodes relies on the Abstract Datagram Network Layer (ADNL), forming the backbone of relations between different shardchains. To efficiently find other nodes in the network, TON implements the Kademlia Distributed Hash Table (DHT), which also creates specialized overlay sub-networks for individual shardchains, ensuring smooth communication.
• Exploring the Applications and Future of TON: TON is not only about raising funds; its goal is to craft a decentralized, secure, and trustworthy internet. Features like TON eSIMs, TON domains, and TON storage solutions aim to protect user privacy and improve data security. Even though current interest in decentralization is moderate, TON has committed significant resources to grow its ecosystem and with its extensive user base, it is well-positioned for future growth.
• Although it faced hurdles at its outset, TON continues to attract attention within the blockchain sector due to its cutting-edge technology and vision for a decentralized internet. Strong financial support and a broad user community provide a sturdy base for forthcoming advancements.

TON’s Past

In 2018, Telegram's founders, the Durov brothers, initiated their quest to find blockchain solutions that could accommodate Telegram's extensive user base. Recognizing the limitations of existing blockchains, they resolved to develop their own Layer 1 blockchain, christened it the Telegram Open Network, or simply TON.

Shortly thereafter, through an ICO for the native $Grams token, TON amassed over $1.7 billion. In 2019, the Telegram team made important announcements and subsequently launched two test networks.

In October 2019, the SEC filed legal action against Telegram, alleging that the company was conducting an unregistered offering of securities. Consequently, Telegram paused the launch of the mainnet for TON and ultimately decided to abandon the project in its struggle with the SEC, opting to return the ICO funds to investors.

During the period of 2020 and 2021, the NewTON team (now serving as the backbone of TON development) revived the project utilizing open-source frameworks. In May 2021, the community voted to transform the long-running Testnet 2 into the Mainnet. The NewTON team rebranded itself as the TON Foundation , operating as a non-profit to foster the growth and support of TON.

TON is now formally acknowledged as The Open Network.

Technical Features of The Network

From its inception, TON was crafted for social platforms with significant user volumes. The TON Blockchain underpins Telegram's blockchain enterprise. At the time, the leading blockchain technologies were not capable of handling the demands of a billion-user platform, creating a pressing need to process millions of transactions per second.

The vision of the TON team was clear; they knew that a single blockchain's transactions per second (TPS) would only amount to a limited count, so they proposed the innovative idea of deploying multiple interconnected chains. Through sharding technology, TON distributes transaction processing tasks across numerous chains, crafting a blockchain network made up of several blockchains, often referred to as the 'blockchain of blockchains.'

More specifically, the TON Blockchain is designed with a tiered three-layer framework, where each tier hosts a different type of blockchain: masterchain, workchain, and shardchain.

The masterchain functions as the main coordinator for the TON Blockchain, singular in its operation. This layer encompasses protocol details, a group of Validators, associated shares, the current operational Workchains and their corresponding Shardchains. Lower-level chains relay their recent block hashes back to the masterchain, which helps ascertain the current state required for cross-chain communication.

While the masterchain serves as the central anchor, the heavy lifting is done by various Workchains. The framework can support up to 2^32 Workchains. Each of them can customize their own operational standards, including unique address formats, transaction types, native tokens, and smart contract specifications. It’s key to recognize that a Workchain is a conceptual framework; it represents a configuration of Shardchains without a physical presence.

To maximize transaction processing capabilities, each Workchain further splits into Shardchains, with a potential maximum of 2^60. Shardchains adhere to the operational guidelines established by their parent Workchain, effectively distributing tasks among all Shardchains. Each Shardchain handles only a fraction of the overall accounts.

In traditional sharding methods, the segmentation is often hierarchical, generally based on prefixes from account addresses. For instance, if a Workchain is divided into 256 shards, accounts could be allocated across various Shardchains based on address prefixes such as 0x00, 0x01, ..., 0xFE, 0xFF.

In contrast, TON adopts a dynamic and flexible bottom-up approach for its sharding mechanism. Initially, every account is treated like an individual Shardchain, which are later condensed into larger Shardchains based on interaction trends, ensuring that each Shardchain processes a sufficient volume of transactions.

Reflecting on the architectural layout of the TON Blockchain, can you recognize any parallels with standard network structures?

It's plausible that the Durov brothers, drawing on their background in networking, infused their design of TON with principles of network architecture. At the start, each network device functions autonomously, akin to every account as a standalone Shardchain. Frequent interactions between certain network devices lead to their clustering into a local area network (where individual Shardchains unite). Various local area networks then communicate with one another via higher-level nodes (interfacing among Shardchains through the Masterchain).

The essence of the TON Blockchain deeply reflects the notion of 'TON of the network', showcasing itself as a viable alternative network.

TON’s Network Structure

As a decentralized system, blockchain necessitates peer-to-peer communication among nodes instead of relying on centralized servers and traditional client-server frameworks. For singular blockchains like Bitcoin and Ethereum, the spread of blocks and transactions through gossip protocols is adequate.

However, for the complex multi-chain design of TON, the network protocols must be more sophisticated.

TON nodes utilize the Abstract Datagram Network Layer (ADNL) for transmitting data, effectively abstracting the network layer from the conventional TCP/IP framework. To facilitate identity verification, nodes utilize Abstract Network Addresses instead of standard IP addresses. These addresses are represented as 256-bit integers derived from hashing ECC public keys and other parameters, allowing secure communication between nodes and ensuring segmentation among distinct Shardchains.

To pinpoint other nodes within the network, TON relies on the Kademlia Distributed Hash Table (DHT). When users want to execute a transaction with a Validator on a specific Shardchain, they can query the DHT using a key to procure the Validator's address.

Central to this design is the Overlay network. Given that different Shardchains function independently with no intrinsic need to handle transactions on alternate Shardchains, the establishment of dedicated Overlay sub-networks for each Shardchain within the TON Network is critical, permitting nodes that choose to communicate to connect. The Overlay network facilitates internal communication via a gossip protocol developed on ADNL.

With its unique approach to network protocols, addressing, data transmission, and final applications defined, TON has realized a concept of infinitely versatile sharding, achieving extraordinarily high Transactions Per Second (TPS). This illustrates the essence of TON – 'TON by the network'.

Exploring the Applications and Projections of TON

CGV Analysis: Exploring the Technological Innovations and Future Potential of the Telegram Open Network (TON) - Metaverse Publication

Brief Overview of TON's Journey: In 2018, the visionary Durov brothers, who are the founders of Telegram, set out to create their own blockchain solution known as the Telegram Open Network (TON).

CGV Analysis: Insights into the Technological Progress and Future Potential of the Telegram Open Network (TON)

CGV Analysis: An In-Depth Look into the Technological Progress and Future Opportunities for the Telegram Open Network (TON)

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Published: September 27, 2023 at 11:56 AM Updated: September 27, 2023 at 11:58 AM

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Examining the Technological Developments and Future Prospects of the Telegram Open Network (TON): A Report by CGV CGV Research The Origins of TON: Telegram, led by the Durov brothers, began crafting its own blockchain — the Telegram Open Network (TON) — back in 2018, driven by the need to cater to its vast user base. The platform raised a staggering $1.7 billion through its Initial Coin Offering (ICO) for the $Grams token. Yet, in 2019, a legal challenge from the U.S. Securities and Exchange Commission (SEC) led Telegram to halt its progress with TON. Despite this setback, between 2020 and 2021, the NewTON team, which has evolved into TON’s primary development team, revived the project utilizing open-source resources, effectively rebranding it as

Key Features of TON: Designed with large user communities in mind, TON employs sharding technology to enhance efficiency, allowing multiple chains to execute transactions simultaneously, essentially creating a 'blockchain of blockchains'. Its structure includes three layers: the masterchain, workchain, and shardchain. The masterchain operates as the main hub, while various workchains and shardchains handle the heavy lifting of transaction processing. Additionally, TON's sharding is not static, adapting dynamically to optimize the aggregation of shardchains based on how users interact.

Architecture of TON: Nodes in the TON ecosystem utilize the Abstract Datagram Network Layer (ADNL) to facilitate communication among different shardchains. By applying the Kademlia Distributed Hash Table (DHT), TON efficiently identifies other nodes across the network and has developed specialized overlay networks for each shardchain to enable seamless interaction.

Future Applications and Aspirations of TON: Beyond just raising funds, TON aims to create a decentralized, secure digital landscape. Innovations like TON eSIM, TON domains, and TON storage are crafted to bolster user privacy and protect data security. Although the interest in decentralization may fluctuate, TON has strategically set aside significant resources for its ecosystem and, backed by its vast user base, stands ready to gain traction and expand.

Despite encountering setbacks at its inception, TON continues to capture attention within the blockchain sector thanks to its cutting-edge technology and aspiration for a decentralized future. With solid financial support and a broad user community, it is well-positioned for ongoing growth and innovation.

Conclusion

In 2018, the Durov brothers, the minds behind Telegram, ventured into the world of blockchain to find solutions tailored for Telegram's needs. Realizing that existing blockchain options couldn't cater to their billion-strong user base, they took the bold step of engineering their own Layer 1 blockchain, dubbed Telegram Open Network, or simply TON.

Months later, through an ICO for the native token $Grams, TON garnered over $1.7 billion. In 2019, Telegram initiated the rollout of pertinent documents and successfully launched two test networks.

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However, in October 2019, a lawsuit from the U.S. Securities and Exchange Commission (SEC) accused Telegram of conducting an unregistered securities offering. Consequently, the Telegram team suspended the mainnet launch of TON, ultimately deciding to abandon the endeavor amidst the ongoing SEC confrontation and refunding ICO investors.

Disclaimer:

During the period from 2020 to 2021, the NewTON group, which is now the core development team for TON, revitalized the project by building on open-source code. By May 2021, a decision was made by the community to upgrade the long-standing Testnet 2 to Mainnet status. The NewTON group also adopted the new identity of the TON Foundation, functioning as a non-profit community dedicated to the maintenance and advancement of TON.

Read more related topics:

• TON has officially emerged as The Open Network.
• From its inception, TON was envisioned as a solution for social networks housing a vast network of users. The TON Blockchain functions as the backbone for Telegram's blockchain needs. During those early stages, traditional blockchain capabilities were far from equipped to manage Telegram's staggering volume of transactions per second (TPS). Therefore, the pressing question was: How could this infrastructure accommodate such a massive user base and facilitate millions of transactions every second?
• The TON team believed that the limitation of TPS in a single blockchain, often capped at a few tens of transactions, necessitated the innovation of creating multiple chains. By utilizing sharding technology, TON distributes transaction processing across numerous chains, collectively forming a complex network of blockchains — a veritable 'blockchain of blockchains'.