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just analysis

TON & Telegram could bring DeFi to the masses

When it comes to cryptocurrencies, the lack of real-world use cases is significant. A vast number of tokens currently in circulation claim to serve a purpose, but many are essentially useless—often clones of other projects, particularly on Ethereum. However, a token has emerged that, while not the most original, holds the potential to bring cryptocurrency into the mainstream and could be used for daily transactions, gaming, and other everyday applications. This token is the Open Network coin, better known as TON. Originally developed by Telegram, TON launched with an ICO. After facing legal issues, Telegram spun off the project into a separate non-profit organization, though it remains closely tied to the company.

Like all tokens, TON comes with a variety of features, which I’ll briefly outline before diving into why its potential is so significant:

Features:

  • Speed and Scalability: TON is designed to handle millions of transactions per second, offering high throughput and low latency.

  • Sharding: TON employs a sharding mechanism that splits the blockchain into smaller, manageable pieces (shards), enabling parallel processing of transactions.

  • Smart Contracts: The network supports smart contracts, allowing developers to create decentralized applications (Dapps) on the TON blockchain.

  • Proof of Stake: TON uses a Proof of Stake (PoS) consensus mechanism, where validators stake their coins to participate in network operations and earn rewards.

Now that we’ve covered the basics, let’s look at the primary reason TON has so much potential: Telegram’s integration. With over 950 million users, Telegram’s built-in wallet could drive mass adoption, not because of the token itself, but because of its ability to handle stablecoins. With proper security and management, millions of people could access stablecoins like USDT, pegged to the world’s most powerful currencies. These stablecoins could be used for payments by individuals and businesses alike. Telegram has the potential to become a “super app” akin to WeChat, where users can handle payments, shopping, and more.

While it may take time for Telegram to reach this status with the help of TON fully, it’s already possible to buy and send stablecoins and Bitcoin through the app’s active wallet feature. Currently, TON is more focused on gaming and airdropping game tokens with names like Dogs or Hamster Combat, but the hope is that it will expand into more serious applications, such as money transfers and payments. This would be especially valuable for those who don’t trust their local currency or government.

The future for TON looks promising, but only time will tell if it achieves widespread adoption. However, with the backing of Telegram, it stands a greater chance than most blockchain ecosystems.

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