Tonconnect | Is Telegram's TON Worth the Hype? (Pros & Cons)

Telegram is one of the most popular messaging apps in the world, and if you're into crypto, chances are you currently use it. But did you know that Telegram has its own token? Yes, it's called Toncoin, and it's been on a wild rollercoaster ride since its launch in 2019. Toncoin had the second-largest ICO in history, raising an astounding $1.7 billion before the SEC came and shut it down. The project could have died then and there, but it survived thanks to a small and dedicated community. Now, after years of hard work, Toncoin has risen from the ashes and clawed its way into the top 10 of all cryptocurrencies, even beating out Cardano.

So, is TON worth the hype? To find out, we need to analyze four key aspects of the project, starting with its strengths.

Strengths of TON

The first strength of TON is its tokenomics. Out of around 5 billion total tokens, about 70% are currently circulating, which is a healthy amount. Additionally, in 2023, there was a successful vote to freeze the wallets of inactive miners, which passed with over 91% of votes in favor. This means that roughly 1 billion tokens, around 20% of the total supply, will be locked away for four years. This is great news for token holders as it means there’s no risk of these tokens flooding the market anytime soon. Furthermore, only 1.45% of the tokens were allocated to the team, which is a very small amount compared to other layer-1 and layer-2 projects.

But it's not just about the tokenomics. TON also has some impressive technology behind it. TON operates on its own blockchain, which is known for its high transactions per second (TPS) and rapid block finality time. The network recently set a record for TPS, surpassing the 100,000 mark thanks

to its unique architecture. It's also highly flexible and scalable due to a special feature called asynchronicity. The takeaway here is that TON’s network is designed to handle mass adoption, which is essential for any project aiming for long-term success.

Another strength of TON is its commitment to future improvements. The project’s roadmap is ambitious, involving plans to develop various projects that extend its capabilities and reach. For example, TON is focused on improving its network infrastructure to support more sophisticated decentralized applications (dApps). The technology’s flexibility means it can adapt to various business needs, making it a great potential partner for any business looking to incorporate blockchain technology into their products. These initiatives are backed by a whopping $340 million raised a few years ago to form their ecosystem funds, showing a strong commitment to future growth and development.

Weaknesses of TON

Now, let's look at some of the weaknesses. One major issue is the complexity of TON’s programming languages. TON supports languages like FunC, Fift, and Tact, which are not widely used by developers. This could lead to compatibility issues with other popular products and ecosystems, and it might also be a challenge to attract developers. As of October 2023, there were only 28 full-time developers in the TON ecosystem, compared to over 1,900 in the Ethereum ecosystem. This is a significant weakness because projects often live or die based on their developer support.

Another weakness is the network's decentralization, or lack thereof. Currently, there are only 340 validators on the TON network, staking 270 million TON in total. This is a small number compared to other layer-1 networks; for example, Solana has around 2,000 validators and Ethereum over 1 million. TON falls short in its aim to be a truly decentralized network.

There are also concerns about the network’s scalability. Although TON boasts high TPS, a critical issue with its code was discovered shortly after a high TPS announcement, causing the TPS to drop to just one for three days. This issue, triggered by some Chinese miners performing inscriptions on the network, suggests that TON may have some technical kinks to iron out before it can truly be as scalable as it claims.

Opportunities for TON

Looking at the opportunities for TON, it can all be summed up with one word: Telegram. Telegram is the fourth-largest messaging service globally, with over 900 million users who generate 1 trillion views per month. With TON as Telegram's native token, the potential for adoption is massive. TON is already used as the fuel that drives many dApps running on Telegram, and this could expand even further if Telegram pursues an IPO. Such a move could provide a massive capital injection and boost legitimacy in the eyes of potential users and investors, leading to more interest and development in their platform.

TON also has a native wallet, TON Space, integrated into Telegram, which allows users to seamlessly use crypto on the platform. The launch of USDT (Tether) on TON’s network further enhances the ease of making payments and using mini-apps for Telegram's vast user base. These developments make it convenient for developers to integrate blockchain technology into their content and games, potentially driving massive adoption.

Threats to TON

However, there are threats that TON could face. The close relationship between TON and Telegram, while beneficial, also makes TON heavily reliant on Telegram's growth and success. Telegram is not alone in the messaging space; competitors like WeChat, which has a much larger user base, also offer messaging, payments, and mini-apps. TON must be mindful of potential competition from players like WhatsApp or Line, who could decide to launch their own tokens.

Additionally, TON has a controversial past. The project has faced significant legal challenges, including a settlement with the SEC. This settlement requires Telegram to notify the SEC if it plans to launch another cryptocurrency. To navigate this, TON was rebranded and launched by a separate entity, TON Labs. However, this is a precarious legal position. If the SEC continues its aggressive stance against crypto, TON and Telegram could find themselves under scrutiny once again, which could be a significant threat to their future.

Conclusion

So, is TON worth the hype? Personally, I think it is. While the road ahead is not easy, and there is much work to be done, we cannot ignore the strong position TON is in due to its close ties with Telegram. The potential for adoption is enormous, and if TON continues to develop and overcome its challenges, it could very well become a significant player in the crypto world. There is an upcomming TON related Platform Tonconnect which looking very much promising.To get all the information on it join the Telegram group and Whatsapp Group