The Open Network (TON): From a cryptocurrency project to a large-scale blockchain ecosystem

What is The Open Network?

The Open Network (TON) is a decentralized layer-one blockchain originally conceived as part of the Telegram ecosystem. The project was created by the Durov brothers as a solution for high-performance processing of mass transactions and decentralized applications. After Telegram withdrew from the project due to regulatory issues, a global community of developers took over further development of the technology, transforming it into a fully decentralized open-source protocol.

From ambitions to reality: the development history of TON

In 2018, Telegram, led by Pavel Durov, released a technical document about Telegram Open Network, launching a powerful ICO that raised $1.7 billion in investments. The project promised revolutionary solutions in decentralized applications, domain names, and virtual networks.

However, in 2020, the project faced a serious obstacle: the U.S. Securities and Exchange Commission (SEC) filed a lawsuit claiming that the Grams token was an unregistered security. This decision halted Telegram’s official involvement in the project.

Despite this setback, the global community of enthusiasts continued development under the new name - The Open Network, maintaining the vision and expanding capabilities without direct involvement from the messenger.

Toncoin (TON): the economic engine of the network

Toncoin serves as the native token of The Open Network, performing many critical functions:

Network fuel and fees: the token powers decentralized applications and is used to pay network fees, including cross-chain operations.

Security mechanism: through Proof of Stake, validators stake Toncoin to confirm transactions, ensuring network security. Participants earn rewards for their work.

Governance: the TON VOTE platform allows token holders to influence ecosystem development and make important decisions.

Telegram integration: users can send cryptocurrency directly through the messenger without fees, using an integrated wallet. In March 2024, Telegram announced sharing 50% of advertising revenue with channel owners via Toncoin payments — creating a real use case for the token.

Current market status: figures and forecasts

As of December 2025:

• Price: $1.52 per token
• Annual change: -74.47% (significant correction from 2024 peaks)
• Market capitalization: $3.72 billion
• Circulating supply: 2.45 billion tokens out of a maximum of 5 billion

Despite the current correction, the ecosystem continues to grow: the network hosts over 650 decentralized applications with a total value locked (DeFi TVL) around $160 million. Analysts in 2024 predicted potential growth to $10-22, but market conditions proved more complex.

TON architecture: engineering scalability solutions

The core of the network architecture is based on innovative solutions:

Adaptive sharding: TON uses a multi-layered structure where individual account networks are combined into sharding networks. This creates a “blockchain of blockchains,” allowing parallel processing of thousands of transactions simultaneously.

Asynchronous message delivery: the system does not require synchronous processing, which is critical for scaling. Each operation can be performed independently.

Hypercube routing: a complex routing mechanism ensures messages between shards pass the shortest path with minimal delays.

Dynamic expansion: the network automatically splits and merges shards depending on load, maintaining optimal performance.

Proof of Stake mechanism: unlike energy-intensive Proof of Work used by Bitcoin, TON chose an eco-friendly PoS where validators are selected based on their stake.

TON Virtual Machine (TVM): a specialized execution environment for smart contracts, similar to EVM in Ethereum but optimized for complex operations, cryptographic calculations, and state management.

The TON ecosystem in action

The network infrastructure includes several key components:

TON DNS: a decentralized domain name system allowing the use of human-readable addresses instead of cryptographic hashes.

TON Storage: distributed file storage providing fast data transfer and advanced information management capabilities.

TON Proxy: an anonymization layer to protect user privacy by masking IP addresses.

TON Space: a non-custodial wallet integrated directly into the Telegram interface for convenient asset management.

TON Payments: an embedded payment system using Toncoin by default for microtransactions and service payments.

Integration with 1.5 billion Telegram users creates a unique advantage — potential access to a mass audience for blockchain applications.

Challenges and opportunities: what lies ahead

Development hurdles: the complexity of programming languages FunC and Fift deters developers accustomed to more intuitive tools like Solidity (Ethereum) and others. This slows ecosystem expansion.

Unique advantages: a potential Telegram IPO could catalyze Toncoin growth. Integration into the messenger’s payment system and revenue sharing from advertising create a real use case for the token. Low fees and high transaction speed position TON as an ideal solution for DeFi and enterprise applications.

Future directions: the roadmap includes expanding cross-chain functionality, improving governance mechanisms, implementing more flexible staking models, and developing gaming platforms, NFT marketplaces, and DeFi products.

Summary: The Open Network in the blockchain context

The Open Network demonstrates how a decentralized community can continue developing an ambitious project even after the original sponsor withdraws. Thanks to innovative architecture, integration with Telegram, and a growing ecosystem of applications, TON positions itself as a serious competitor in the blockchain solutions market.

The current price correction does not reflect the network’s technological potential. Its ability to process millions of transactions with minimal fees and full integration into one of the world’s largest messengers creates long-term growth prospects. For investors and developers, TON remains an interesting platform for experimenting with next-generation decentralized applications and financial instruments.