The encrypted messaging platform, Telegram is planning to launch its blockchain platform and have its native cryptocurrency. It plans to create the cryptocurrency to power payments on its chat app and beyond. The TelegramOpen Network (TON) will be known as the third generation blockchain, which has a period capabilities. In the beginning, we have seen how Bitcoin and Ethereum paved the way for phenomenal blockchain real case users.
The launch of the cryptocurrency will be funded by an enormous initial coin offering with private presales ranging into the hundreds of millions. This can potentially make it one of the largest initial coin offerings to date. If you’re wondering where the demand comes from, this has started by the fact that the ICO will be created by a well established messaging platform that is globally used around the world.
By adopting a native cryptocurrency, this will give Telegram’s current payment system a lot of independence from any government or bank control. The potential for a cryptocurrency, which is widely adopted in a messaging app is enormous.
Benefits of a cryptocurrency in a messaging app
By using cryptocurrency to power payments in sight. Telegram, users can effectively bypass any rabbit and fees when there are sending funds across international borders. Hence, they will be able to move sums of money privately thanks to the app’s encryption. Furthermore, they will be able to deliver micro-payments that would otherwise incur high credit card fees. Telegram is also the de facto communication channel for the global cryptocurrency community, which makes it natural for them to have their coin and blockchain in place.
Telegram is currently considering to raise as much as $500 million in the pre-ICO sale. The total token value is expected to range around $3 billion-$5 billion. However, those figures can potentially change before the ICO, which will come as soon as March. Those figures, effectively make it possible for them to be the biggest private crypto raiseto date after Tezos, which raised over $230 million in July.
A presale in an ICO is a minimum investment which are sometimes given discounts. This is to attract big investors before a wider token sale is open to retail investors. In the retail phase, an ICO tends to raise less money because there is a long queue of people who are investing smaller sums. However, frontloading the ICO with institutional investment will inspire confidence for a retail investors.
If you’re interested in participating as a presale investor, you may be required to please put in a minimum of $20 million to buy in if you are outside of the founder’s inner circle. Sources also mention that the ICO will require real fiat currencies such as the US dollar for buy-in. No other cryptocurrencies such as Bitcoin or Ethereum can be used to purchase the initial frontloading of the ICO.
Good news for Telegram is that top-tier institutional investment firms have expressed their interest in the ICO. However, the founder of Telegram is said to be very worried about accepting their cash. One firm, which is rumored to have pushed for a presale allocation is theMail.Ru Group.
Understanding Telegram Open Network
The idea behind this launch is to create an entirely new blockchain, which users Telegram 180 million users as rocket fuel to power for at the mainstream adoption of cryptocurrency and make Telegram effectively a kingmaker of other cryptocurrencies. According to Telegram is the white paper, the cryptocurrency will be called “Gram” and can potentially gain immediate mainstream adoption because it is tied to Telegram’s chat app.
Sources also mention that the launch me probably combine both centralized and decentralized structure. This is because a decentralized network does not scale as fast as those that have elements of centralization. Hence, this highlights why Telegram will need its blockchain. By shifting to a decentralized blockchain platform, this can bring a lot of benefits for Telegram.
It can create a full-blown cryptocurrency economy inside the app where it will also insulate against the attacks and accusations of nation-states such as Iran, where it now accounts for 40% of Iran’s Internet traffic. It was temporarily blocked amongst nationwide protests against the government. Telegram has since then played a delicate political balancing act to try and retain its user in the country. They even shut down some channels for calling for the downfall of the government, while also keeping others open.
Inspired by WeChat
With TON, Telegram wants to build a cryptocurrency, which is similar toWeChat that has flourished into more than just a chat application. In China, we chat a default payment mechanism for many different products and services. In fact, payments can be made very quickly using we chat. However, the system remains very centralized.
With TON, it will be a decentralized platform that can offer more security and resilience not sources even say that Telegram plans to allow users to hold both Telegram’s currency and a fight at currency in a forthcoming wallet. Currently, there is also an existing developer ecosystem that Telegram has built up around it were bought and services are offered by third-party developers.
Inside the white paper
Telegram has since then released a 132 pages white paper. In it, its outlines a four-stage plan. Firstly, TON Services will be a platform for third-party services that enable smartphone like friendly interfaces for decentralized apps and smart contracts. Secondly, TON DNS is also known as a service which assigns human-readable names to accounts, smart contracts services and network nodes. Thirdly, TON Payments will be a platform for micro-payments and a micro-payment channel network. It is used to provide instant of chain value transfers between users bods and other services. Lastly, the TON Blockchain will consist of a master chain and 2-to-the-power-of-92 accompanying blockchains.
It will also utilize an Infinite Sharding Paradigm to achieve scalability. Therefore, the blockchains will be able to automatically split and merge to accommodate any changes in the load. Hence, this means new blocks will be able to be generated quickly. The absence of long queues will help to keep transaction costs and low. Even if the services which are using the platform becomes massively popular, it will still be cost saving.
To maintain speed, theInstant Hypercube Routing will be utilised. Even as it grows, the speed can be maintained. This uses a proof of stake approach. Its third-generation blockchain will also be based on a dynamic proof of stake, which is secured by multiple parties with a high degree of fault tolerance. It can also handle storage of ID, payments and smart contracts.
Instead of relying on proof of work to create its currency, Telegram will rely on a less energy intensive week of mining cryptocurrency, rather than using Bitcoin mining. It also claims that it will be capable of a superior number of transactions which is around 1 million per second.
In the white paper, it also clearly states that 4% of the supply of cryptocurrency will be reserved for Telegram’s development team within a four year vesting period. Telegram also plans to retain at least 52% of the entire to fire the cryptocurrency to protect it from speculative trading and maintaining flexibility. Meanwhile, the remaining 44% will be sold to the public and in a private sale. The currency will be listed on the exchanges and can be used inside the Telegram app.
Timing -wise, the first quarter of 2018 will see the launch ofthe Telegram External Secure ID, followed by an MVP of TON. The launch of the Telegram Wallet is slated for Q4 2018, and the creation of the TON-based economy could launch in Q1 2019. The rest of the TON Services would follow in Q2 2019.
However, there are still some people in the community who are skeptical of the Telegram cryptocurrency. They think that this is just the way that the founder of the chat application is trying to monetizeTelegram.
The Durov brothers
Durov and his brother Nikolai Durov, a mathematical genius were behind the creation of VK. It was also adapt to Russia’s Facebook. It was estimated to be worth about $3 billion but was forced to sell their stake in the company by shareholders, which were deeply connected to the putting lead government.
This is another upcoming cryptocurrency that we can certainly keep our eyes out for a. It has real uses for it and it seems like that out there is great potential with this cryptocurrency. With over 180 million users as its customer base, it has a real potential to become a success.