Toncoin (symbol: TON) is the native cryptocurrency of The Open Network (TON), a decentralized Layer 1 blockchain platform initially developed by Telegram.
Toncoin facilitates various functions within the TON ecosystem, including paying transaction fees, securing the network through staking, and serving as a medium of exchange for services and applications built on the TON blockchain.
What is The Open Network (TON)
The Open Network (TON) is a decentralized, high-performance blockchain platform designed to support mass-scale applications and transactions. It employs a multi-blockchain architecture with dynamic sharding to achieve scalability and efficiency.
TON’s proof-of-stake consensus mechanism ensures network security and allows for efficient transaction processing.
How does TON work?
TON operates through a multi-layered structure comprising a masterchain and numerous workchains, each capable of supporting various applications and services. Its dynamic sharding technology enables the network to automatically split and merge to accommodate varying workloads, ensuring consistent performance even during peak demand.
TON Uses
TON is utilized for several purposes within its ecosystem:
- Transaction Fees: Users pay fees in Toncoin for transactions and smart contract executions on the network.
- Staking: Validators stake Toncoin to participate in the network’s proof-of-stake consensus mechanism, contributing to network security and earning rewards.
“Its dynamic sharding technology enables the network to automatically split and merge to accommodate varying workloads, ensuring consistent performance even during peak demand.”
- Governance: Toncoin holders can participate in governance decisions, influencing the development and direction of the network.
- Services: Toncoin is used as a medium of exchange for various services and applications built on the TON blockchain, including decentralized finance (DeFi) platforms and games.
Token Utility
Toncoin serves as the lifeblood of the TON ecosystem, enabling seamless transactions, incentivizing network participation through staking, and facilitating governance. Its utility extends to various applications and services within the network, fostering a vibrant and interactive community.
Shariah Opinion
The Toncoin can be considered Shariah compliant as there are no impermissible use cases. The TON protocol has genuine use cases.
Conclusion
Based on and subject to the foregoing information, and for the purposes of this conclusion, nothing has come to our attention that causes us to believe that NEAR is in breach of Shariah* principles and rulings as adopted by the scholars conducting this research.
*Attention is drawn to the term ‘Sharia’ and ‘Sharia compliant’ and its interpretation thereof as expressed in the following link https://shariyah.net/glossary/