The Open Network (TON) Research Report

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Executive Summary

The Open Network (TON) is a decentralized platform combining a Layer-1 blockchain with a suite of network protocols designed to mirror the structure and functionality of the internet. Originally developed by Nikolai Durov and now advanced by an open-source community, TON supports diverse applications including digital finance, decentralized storage, and censorship-resistant websites. Its architecture leverages a masterchain and multiple workchains—enhancing scalability and enabling high-throughput transaction processing essential for mass adoption.

A key component of TON’s ecosystem is Fragment, a decentralized marketplace that has facilitated over $350 million in transactions, demonstrating the network’s economic viability. Integration with Telegram, one of the world’s most popular messaging apps with over 900 million monthly active users, enables seamless content monetization and user engagement. This synergy positions TON as a leading gateway for Web2 users transitioning into Web3.

Recent recognition from regulators in the UAE and strategic partnerships with major tech firms have amplified TON’s global credibility. As development continues, TON is poised to redefine digital interactions by offering a fully decentralized, secure, and scalable infrastructure capable of supporting next-generation applications—from microtransactions to blockchain-based gaming.

👉 Discover how TON is shaping the future of decentralized ecosystems.

Introduction

The Open Network (TON) is a decentralized computing network composed of a Layer-1 blockchain (TON Blockchain) and a series of interoperable protocols (collectively known as TON Network). These protocols not only support the blockchain but can also function independently as decentralized services. Initially conceived by Nikolai Durov, brother of Telegram founder Pavel Durov, TON was designed to create a scalable, secure, and user-friendly blockchain ecosystem.

The Origins: Telegram and the Birth of TON

Pavel and Nikolai Durov first gained prominence through VKontakte (VK), a Russian social media platform similar to Facebook. After facing government pressure over user data and censorship, Pavel left Russia and co-founded Telegram in 2013 with a mission to provide secure, private communication globally.

By 2018, Telegram had amassed over 200 million monthly active users. To fund its growth without compromising independence, the Durov brothers launched Telegram Open Network (TON) and its associated cryptocurrency, Gram, via a private ICO that raised $1.7 billion. However, the U.S. Securities and Exchange Commission (SEC) intervened in 2019, halting the project on grounds of unregistered securities offerings.

Despite Telegram officially abandoning TON in 2020, the open-source code lived on. A group of independent developers, led by Anatoly Makosov and Kirill Emelyanenko, revived the project—rebranding it as Toncoin and later The Open Network (TON). With strong backing from Pavel Durov and integration into Telegram’s ecosystem, TON has emerged stronger than ever.

Core Components of The Open Network

TON is more than just a blockchain—it's a full-stack decentralized internet alternative. Here are its foundational components:

1. TON Blockchain

A multi-chain architecture featuring:

2. TON Network

A peer-to-peer (P2P) network enabling secure communication between nodes.

3. TON Proxy

An anonymity layer akin to TOR or I2P, masking node identities and IP addresses.

4. TON DNS

Maps human-readable names like example.ton to wallets, smart contracts, or services using smart contracts.

5. TON Sites

Allows hosting of decentralized websites accessible via .ton domains—fully resistant to censorship.

6. TON WWW

Enables browser access to .ton sites without additional plugins.

7. TON Storage

Decentralized file storage using torrent-like technology across the network.

8. TON DHT

Distributed Hash Table for efficient data lookup—used by TON Storage and services.

9. TON Services

Platform for building interactive dApps, bots, or backend services accessible through Telegram.

10. TON Payments

Off-chain micropayment channels for fast, low-cost transfers—similar to Bitcoin’s Lightning Network.

Together, these components form a self-contained digital ecosystem where websites, apps, payments, identities, and data are fully decentralized and user-controlled.

👉 Explore how TON’s full-stack design enables true decentralization.

Technical Architecture

Multi-Blockchain Design

At the heart of TON lies a hierarchical multi-blockchain framework:

This design allows TON to scale horizontally while maintaining security and consistency across chains.

Scalability Through Sharding

Sharding divides computational load across multiple chains. For example, if a gaming workchain experiences congestion, it can spawn new shards dynamically—balancing load and maintaining performance. This elasticity supports millions of daily transactions with minimal latency.

Cross-Chain Interoperability

TON ensures seamless communication between chains via the masterchain, which validates cross-chain messages and synchronizes states. This allows complex operations—like transferring assets or triggering smart contracts across different workchains—without manual intervention.

Security: Proof-of-Stake & Nominator Pools

TON uses Proof-of-Stake (PoS) for consensus:

Slashed funds are partially burned (reducing supply) and partially rewarded to “fishermen” who report misconduct—strengthening network integrity.

Economic Model and Governance

Tokenomics Overview

Initially, 98.55% of tokens were mined via Proof-of-Work; 1.45% reserved for developers.

In 2023, a governance vote froze 21% of supply held in inactive wallets for four years—curbing centralization risks and boosting liquidity fairness.

Transaction Fees & Burn Mechanism

Unlike Ethereum’s user-pays model, TON uses a developer-pays fee structure:

This dual mechanism creates deflationary pressure while incentivizing network security.

Decentralized Governance: TON.VOTE

Holders participate in governance via TON.VOTE, influencing upgrades, funding allocations, and policy decisions—ensuring community-driven evolution.

Ecosystem Growth & Adoption

Key Metrics (2025)

USDT integration via bridges like Symbiosis and LayerSwap has fueled DeFi growth on TON.

Leading dApps on TON

STON.fi

DeDust

Swap.coffee

A new DEX aggregator optimizing trade routes across multiple platforms—ideal for both beginners and advanced traders seeking cost efficiency.

Tonstakers

Real-World Use Cases

Telegram Ads: Monetizing Communities

Projects pay in TON to display ads at the bottom of Telegram channels. Crucially:

Mini Apps Revolution: Hamster Kombat & Beyond

Games like Hamster Kombat—a click-to-earn game with over 200 million participants—showcase TON’s mass appeal in Asia. Similar to Axie Infinity’s impact in Southeast Asia, these apps are driving financial inclusion and Web3 adoption among non-crypto natives.

Other notable mini apps include Notcoin and Catizen—blending gamification with token incentives.

Strategic Integrations

Global Expansion

UAE Recognition

Dubai International Financial Centre (DIFC) has officially recognized TON Blockchain alongside Bitcoin and Ethereum—allowing institutions to transact using Toncoin. This regulatory validation boosts institutional trust.

India’s Mobile-First Opportunity

With over 800 million smartphone users and ultra-cheap data ($0.09/GB), India presents massive potential. Telegram has over 100 million downloads there—making it fertile ground for TON-based apps targeting mobile-first users.

Future Outlook

TON is uniquely positioned to become the primary bridge from Web2 to Web3:

As developer tools mature and more games launch natively on Telegram, TON could rival platforms like WeChat—not just as a messaging app, but as a full digital economy.

👉 See how you can get started with TON today.

Frequently Asked Questions (FAQ)

Q: What is The Open Network (TON)?
A: TON is a scalable, decentralized blockchain platform originally developed by Telegram’s team. It combines a multi-chain architecture with internet-like protocols to support dApps, payments, storage, and more.

Q: How does TON differ from Ethereum?
A: TON offers faster transactions, lower fees, built-in scalability via sharding, and deeper integration with Telegram’s ecosystem—making it ideal for consumer-facing applications.

Q: Can I stake TON tokens?
A: Yes. You can stake directly or use liquid staking providers like Tonstakers to earn rewards while retaining asset flexibility.

Q: Is TON legal?
A: While initially halted by the SEC in the U.S., TON operates independently today and is recognized in jurisdictions like the UAE. Always comply with local regulations.

Q: How do I buy TON?
A: TON can be purchased on major exchanges like OKX or directly via Telegram Wallet using various payment methods.

Q: What are Telegram Mini Apps?
A: Lightweight apps inside Telegram that connect to TON—used for games (e.g., Hamster Kombat), DeFi trading (via Bitget), or NFT minting—all without leaving the chat interface.