ICO Telegram - what is TON and why does Durov need a blockchain?

TON (Telegram open network), ICO, Gram cryptocurrency – how it all works

Gram is the name given to the Telegram crypt, and the diamond emoji will be used as a logo. But all this is in the future; now Gram is at the ICO stage - a business project and the implementation of its own developments.

The main feature of this project is the new blockchain technology TON (Telegram open network), it has already received the name: “Third Generation Platform”, thanks to its flexible architecture it will be possible to carry out millions of transactions per second, and this is faster than payments with a plastic card. By comparison, Bitcoin limits 7 transactions per second.

Most of the information about the project is contained in a document called “white paper”, which was disseminated through Telegram channels in January 2022. From the document it becomes clear that TON technology will be integrated into Pavel Durov’s messenger, and the Gram cryptocurrency (coin and token) it will be possible to buy, sell or use to pay for goods using a wallet that every Telegram user will receive. Pavel Durov's team promises to make the purchase and payment process simple and clear. You can familiarize yourself with the contents of the White paper.

Read white paper

The document in the section on cryptocurrency mentions cryptocurrency tokens (digital shares) that will be sold during the ICO - raising investments to complete the development and launch of the project. After the technology is fully operational, a cryptocurrency will go on sale, which in the document was called “tonative TON tokens (Grams)” - a native token. To avoid confusion with these concepts, in the text of the article only ICO digital shares will be called tokens, and the new cryptocurrency will be called Gram or the more familiar word “coin”.

Brief technical description and some ICO details

Based on the information provided, the project decided to combine centralized and decentralized infrastructure. Some centralization, apparently, was made to simplify the scalability of the network, because... a fully decentralized network does not scale as quickly as one that has elements of centralization. If we talk about the decentralization of the network, it will allow Telegram to solve several problems - creating a cryptocurrency economy within the platform, applications and creating protection for the service from attacks and blocking from outside.

TON is a combination of the following components:

• TON Blockchain. A flexible multi-blockchain platform capable of processing millions of transactions per second, with Turing smart contracts, support for micropayment channels and many other unique features.
• TON P2P Network. The network will be used to access various TON blockchains
• TON Storage. Distributed data storage technology. Access to files is provided in a similar way to torrent technology. "Storage" uses smart contracts to control access to files.
• TON Proxy. This is a network distributed proxy server that allows you to anonymize network participants. Capable of making any service, including Telegram, effectively protected from censorship.
• TON Services. A platform for third-party services, providing access to decentralized applications and smart contracts.
• TON DNS. Designed to make using decentralized services as convenient as browsing the Internet
• TON Payments is a micropayment network that can be used to instantly transfer value off-chain between users, bots and other participants. The network has a guarantor mechanism, so all transactions are secure
• TON DHT. A distributed hash table used as a “torrent tracker” for TON Storage, as an “input tunnel” for TON Proxy and as a service locator for TON Services.
• TON will allow easy integration with other social networks and applications , thereby making blockchain technologies and distributed services accessible to ordinary users.

While the TON blockchain is the core of the project, its other components can be considered auxiliary and optional. However, they have useful and interesting functionality. By using them, applications on the platform can become much more versatile than if they relied only on TON Blockchain.

Release date of Pavel Durov's cryptocurrency TON

One of the main questions associated with Gram (TON cryptocurrency) and Telegram is the release date for the sale of tokens and coins.

The white paper document contains a technology implementation plan, according to which Pavel Durov’s team plans to launch the wallet at the end of 2019, and servers and databases will begin to function in the second quarter of 2022.

This is if we talk about coins, but ICO tokens can be purchased earlier, without waiting for the Gram cryptocurrency to be released.

A closed pre-sale (Pre ICO Telegram) to large investors has already taken place in January; a public sale of tokens is expected in March; this is what arouses the greatest interest of users. According to information from open sources, ICO tokens can be exchanged in a 1:1 ratio for Gram coins (TON cryptocurrency) after the public release date.

The estimated release date for Pavel Durov’s cryptocurrency TON is the end of October 2019

Exposing the TON10 project

There is another reason why scammers do not leave their numbers. They lure the victim’s phone number during registration, then call them themselves. If a person refuses to pay them money, they begin to threaten. These are truly dangerous criminals. Plus, they use psychological influence techniques. Therefore, highlighting a specific phone is a big problem for them. After all, using it, the prosecutor’s office will quickly discover the location of the scammers.

There is no program that makes money out of thin air. Instead of passive income, the victim is persuaded to invest a lot of money. After all, by registering on their website, a newcomer is transferred to the trading exchange - 24option.com. And she, by the way, has been on the blacklist for a long time. There you need to lose your investments. Transactions will always not be in favor of the client. Moreover, not a single deposit replenishment will cost $10. They will force you to invest hundreds, or even thousands of dollars.

Having taken away all the resources, the scammers will not get away from their victim. They will persuade you to recoup or wait a little longer. After all, the mythical cryptocurrency Gram is about to skyrocket in price. So you really should be wary of these criminals. After all, the matter will end not only in loss of money, but also in mental breakdown. And this is much more serious damage.

How to buy ICO Telegram TON

At the ICO stage in Telegram, only tokens can be purchased for TON cryptocurrency. In January 2022, a pre-sale of tokens was expected, but in fact, Pavel Durov organized a closed placement of securities, which will allow investors to participate in the distribution after the launch of the TON platform. The planned amount of investment ($850 million) was collected by Pavel Durov’s team, but the principle of placing these investments was not what users expected.

However, the Internet space is excited about Telegram’s ICO; how to participate in Pavel Durov’s project and when it will become possible for everyone - questions that haunt millions of users.

Open sources talk about March 2022 as the date for the public sale of Telegram ICO tokens, and as the first month of spring approaches, the number of fraudulent sites is steadily growing. Cautious buyers can wait for the release of a Telegram wallet for the Gram cryptocurrency, where it will be possible to buy and sell coins without risk and anxiety, but there remains a considerable proportion of those who hope to earn money through investments at the ICO stage.

It also remains unclear how the sale of tokens will take place - through exchanges or Pavel Durov’s team will decide to create a website for this purpose.

Where were investors planning to spend their investments?

A third of the received investments ($520 million) were planned to be used for the development of the Telegram messenger in the period from 2022 to 2021. Pavel Durov commented on this expense item during his testimony in Dubai, which lasted 2 days (the company’s main office is located there). The entrepreneur explained that by doing so he seeks to attract new users.

Immediately after the creation of the application, many VKontakte account owners downloaded the new messenger, since its creator was Pavel Durov, for whom they show strong respect and interest in all his projects. If part of the investment in TON is directed to the development of the messenger, then its authority will increase, and trust in the blockchain platform will grow significantly. Pavel Durov claims that he tries to satisfy all Telegram requests. An entrepreneur is ready to invest a lot of resources in the development of his projects, without wasting funds on personal needs and luxury.

Durov also explains that a large amount of investment from many investors became a necessity, which made it possible to ensure a sufficient number of validators - users of the platform involved in confirming transactions (initially it was planned to replace them monthly). Validators guaranteed the serviceability and stability of TON. According to preliminary calculations by Durov, the optimal number of such users was 20 people. Moreover, each of them should have owned a significant number of Gram cryptocurrencies.

The cost of the Telegram GRAM cryptocurrency

The white paper contains a formula for calculating the price of the Telegram (Gram) cryptocurrency; the price at the closed pre-sale started from $0.1 (some sources say $0.03) and grew with each coin sold, to be more precise, with each coin promised at agreement for investors. During the March sale, a price tag of $1 to $3.14 per token is expected.

If we talk about the Gram cryptocurrency, the price must correspond to the stated formula, and in order to avoid speculation in the first stages of Gram’s work, Pavel Durov’s team will reserve 52% of the coins. Not everyone believes that this is enough to stabilize the rate, but too strong jumps in value are not expected.

What is the essence of divorce?

First, in the first video, we are told that this revolutionary method can be tested for free.

After registration, a certain Vladimir Shuvalov shows how you can easily make money using Ton trading algorithms. But now we need to top up our account with $250, and the robot will start earning us millions.

Friends, don't fall for this old scam . There are no super robots or Ton (Ton) algorithms. We have already reviewed a similar scam and it is called Quantum System , the same thing awaits you here. After replenishing your deposit, the so-called “robot” will drain your money by opening unprofitable trades. Then “employees” come into play, or, more simply put, scammers who will offer you to invest $1000 or more.

Of course, you shouldn’t even think about investing the first 250 dollars, much less be persuaded by scammers who will pose as experienced analysts. In fact, these people just sit in Call Centers and deceive people according to instructions from scammers and for their own percentage, they have nothing to do with trading.

If you want to withdraw money, you will not succeed. Above I showed an example of a review, a person who entered his money and tried to withdraw it. First they will tell you that you need to pay tax, insurance, some fines, and in the end they will generally threaten you if you do not pay. In short, these looters will not get rid of you until you run out of money or you simply get tired of conflicting with them. I think the prison has been crying for these people for a long time.

Gram cryptocurrency news

A curious feature of ICO Telegram is that there are no official statements or interviews from Pavel Durov or his team. Most of the news is published on large authoritative resources, but is indirect in nature or is published with the note: “according to information from close people.” The official Telegram website also does not hint at any upcoming changes.

However, we must admit that such a strategy is typical for the founder of VKontakte, and therefore hardly surprises anyone.

If we talk about the latest important messages about the Gram cryptocurrency, the news came from overseas. The US Securities Commission reported in February 2022 that Pavel and Nikolai Durov reported on the placement of securities in the amount of $850 million, 81 investors took part in the project, the type of securities in the document was indicated as an “agreement to purchase cryptocurrency.” This wording means that not a single token or coin has been sold yet, only the rights to a certain number of coins after they begin to be released for sale.

The news about the official collection of investments dispelled the last doubts about the reality of the project and generated a new wave of interest in the Gram cryptocurrency.

Reasons for litigation

The SEC is confident that the Telegram company is deceiving the international community and, in particular, American legislation. The US agency is confident that Gram cannot be classified as a cryptocurrency. It is obvious that Telegram plans to issue digital papers. This process is strictly regulated by the relevant laws of the American state, which differ from the rules for issuing digital coins (official laws have never been adopted).

The organization issuing digital coins must provide data on the financial situation, upcoming risks, type of activity, production management, etc. TON management did not comply with these rules. The Commission, in its statement of claim, demands that Gram be recognized as a security, return investments, pay penalties and eliminate violations.

In US judicial practice, there have been cases when the regulator did not classify tokens as securities. According to official sources, this option is possible when digital coins are not offered to investors. For this reason, the popular cryptocurrencies Bitcoin and Ethereum were not recognized as securities.

But with Gram, things are different - not a single state in the world has recognized them as an electronic currency, they are not involved in trade, so they are used exclusively as investments. Telegram plans to increase the price of coins and reduce risks for token holders, so coins can be resold for a higher amount, which is a distinctive characteristic of securities. Telegram’s position fully confirms the statements of the American regulator. Gram is not a commodity or money. Gram is a security.

The defendants in the litigation are both firms of the Durov brothers - Telegram Group, which is developing the famous messenger, and its subsidiary TON Issuer, which was opened to launch the blockchain platform.

All about Gram Mining

According to the published document (white paper) about the Gram cryptocurrency, mining will be slightly different from the usual:

• Every month a new selection of 1000 miners will be carried out from users who submitted an application; other users will not be able to engage in mining.
• Miners will work on their own equipment, but no special mining power will be required; a powerful processor will suffice.
• Miners will also be responsible for verifying the authenticity of transactions, validating blocks, etc.
• Miners will receive cryptocurrency for quality work done, and will lose it for mistakes.

Information about the TON10 project

In their video, the scammers offer to use a unique program that will help you get rich. They promise to give you earnings automatically. To lure new suckers, scammers have come up with two sites at once. One invites you to get acquainted with the project and purchase a robot, the other invites you to register and make huge profits.

Interesting point with the video. It itself states that it was recorded on YouTube, but it is not on this resource. That is, it was recorded purely for a scam site. However, the scammers themselves claim that their company is well-known in the field of innovative earnings. Moreover, their popularity is limited only by their one-page site. There is not a single real review of these scammers online.

There is another interesting point. On one of their websites they say that there is no need to work, the program will do everything itself. But in another they specifically write - you will have to trade on financial exchanges. So is it automatic earnings or not? Crooks don't even know how to lie well. They blurted out something like that, suddenly a newbie doing business on the Internet will fall for it.

ICO token and Gram coin – to be or not to be?

Online, analysts note the forecast regarding all components of the project - Gram, ICO, token, Telegram, Durov; bloggers are ready to share their opinions, and on forums users vying with each other to express their opinions. There were conspiracy theories, special services and discussion of the personality of Pavel Durov, but no one doubts that such a large and ambitious project will be successfully implemented - Pavel Durov’s team has all the resources, and is headed by a person who is used to setting goals and achieving more than it promises.

Another question is whether it is possible to make money from this. Investors who participated in the closed pre-sale will undoubtedly make a profit - the cost of one coin was minimal, and the contract amounts started from $20 million.

With each subsequent coin sold, the value of the entire cryptocurrency will increase, but how quickly this will happen is difficult to estimate and plan. Another important point: buying Telegram ICO tokens in 2022 is a long-term investment, and in terms of annual profitability, Gram is unlikely to provide the tenfold growth that cryptocurrency investors usually expect. The advantage of the Telegram crypto is the confidence that it will not lose value in the coming years.

Novice investors should weigh everything and think about it before deciding to buy Gram tokens of the TON cryptocurrency.

Basic expenses of Telegram

In 2022 and 2022, Telegram's expenses amounted to $218 million out of a total investment of $1.7 billion. This information was obtained during the interrogation of Pavel Durov in Dubai. The businessman suggested that costs would require an increase of approximately 10% to cover travel and accommodation during business trips.

Investors did not have any access to expenses, according to the American regulator - the company independently decided where the money would be spent. Pavel Durov argues that it is impossible to clearly separate the costs of the messenger and the blockchain platform. Firms use the same equipment, employees and suppliers for all projects.

The company spends the most money on its employees. In 2022, the staff numbered from 25 to 30 people. Additionally, the company used the services of a large number of contractors, the number of which reached hundreds. As of 2022, these data have not changed much, as Durov claims. The majority of employees are programmers who write code.

Approximately 40% of all expenses are expenses for equipment (computers, servers, etc.). From October to the end of December 2022, approximately $10 million was spent on equipment

Initially, the company's expenses were covered personally by Pavel Durov, providing money from his personal savings. The entrepreneur formed a certain capital after selling his share in the VKontakte social network. During his testimony, Pavel Durov stated that he decided to get rid of his part in time.

Durov successfully invested the money received from the sale of his share in the social network into a new project. Until 2022, the businessman actively bought servers using his personal savings. But the entrepreneur spent his own money in subsequent years, as he tried to satisfy all the needs of the messenger. Pavel Durov states that he is a true fanatic of his business and strives to create a useful and interesting project.

When launching the telegram, the finances of a private investor originally from Buffalo, New York were used. This information was included in the statement of claim. Forbes magazine suggested on October 17 that the investor could be ex-employee of the VKontakte social network Axel Neffe.

Blockchain TON

The basis of the network is the TON blockchain. This is another version of the most promising concept of a multidimensional blockchain today, consisting of many blockchains - sharding, in which each validator confirms only transactions related only to a given shard. This is a system that supports Turing-complete smart contracts.

The consensus method uses the Proof of Stake option, in which the integrity of validators is guaranteed by their deposits - they can be confiscated in whole or in part, following the model of the existing Tendermint consensus or the Casper one under development. Unlike the Cosmos/Tendermint network and Ethereum with Casper, where any token holder can become a validator, TON provides a set of validators that is close to static, which is a significant drawback for a public blockchain.

A new set of validators is compiled every month (more precisely, 2^29 blocks of the main network), and its composition is known in advance. In paragraph 2.6.3, which describes the formation of validator pools, it is said (in fact, in established terminology, which for some reason the authors do not want to use, such validators are called masternodes):

Anyone wishing to become a validator must purchase and maintain high-performance servers and provide them with a continuous connection to the Internet. This is cheaper than running ASIC Bitcoin mining rigs, however, it is safe to say that mining TON from a home computer, let alone a smartphone, is impossible. […]

TON introduces the concept of a nominator – a node that lends the validator a certain amount of tokens, which he adds to the validator’s deposit, thus increasing his stake. In exchange, the nominator receives a proportional share of the reward. […] However, if a validator loses their deposit due to dishonest behavior, the nominator also loses their deposit, so they must choose their validator responsibly.

In other words, consensus is a type of Delegated PoS system used in the Bitshares and Steemit networks, as well as in the future network of one of TON’s competitors, the EOS blockchain. The disadvantages of such a system have already been discussed in sufficient detail earlier. It is interesting that in paragraph 2.8.5 the author himself comes to the conclusion that the BFT PoS consensus is superior to DPOS, which does not prevent him from nevertheless using it, albeit in a significantly modified form.

TON roadmap

• 1st quarter 2022 – Launch of an external identifier in Telegram (KYC/AML).
• 2nd quarter – Launch of the TON test network in a minimal version.
• 3rd quarter – Testing and audit of the TON code.
• 4th quarter – Placing a stable version of TON.
• 4th quarter – Launch of the TON light wallet built into Telegram.
• 1st quarter 2022 – Start of creating the TON economy in Telegram.
• 2nd quarter – launch of a distributed file storage service and an anonymous payment service.

Comparison with existing platforms

A significant place in the description of the TON technology is given to comparing the future platform with both already operating and under development blockchains. The author offers his own classification of blockchain generations:

• First generation. Single chain, PoW, no smart contract support. Examples: Bitcoin (2009), many of its imitators - Litecoin, Monero, etc.
• Second generation. Single chain, PoW, smart contracts. Examples: Ethereum, at least in its current form.
• Third generation: Single chain, PoS, smart contracts. Future Ethereum (2018 or later). Generation 3′: Multi-chain, no smart contracts. Bitshares (2013 with DpoS).
• Fourth generation: Multi-chain, PoS, smart contracts. PolkaDot, EOS (DpoS).
• Fifth generation. Multi-chain, PoS, smart contracts, BFT sharding. TON – 2022.

The author describes in detail the advantages of TON over its competitors. In particular, his arguments against Ethereum (the author’s main target, since the “Ethereum killer” is a long-standing meme) are not without foundation: the transition from PoW first to hybrid PoS+PoW (Casper FFG), and then to pure PoS, will require a radical “breaking” genome", i.e., in fact, creating a parallel platform while ensuring backward compatibility with all already created applications.

However, reproducing the advantages of TON over the blockchains listed in the work is not as interesting as the lack of mention of other projects that may well compete with TON and, moreover, are at a more advanced stage of development. In other words, in the description of the TON technology, “convenient” sparring partners are selected, and “inconvenient” ones are not mentioned, as if they did not exist. Considering Nikolai Durov’s qualifications, it is difficult to assume that he is not aware, for example, of the Dfinity project, which has clear similarities with TON and at the same time has a Virtual Machine that is fully compatible with Ethereum’s EVM. As for the fifth generation, in technological terms the RChain project is in no way inferior to TON, to say the least. Thus, a brief description of the information storage layer in TON practically coincides with Special K - a layer of distributed file storage in Rchain.