Telegram has released the long-awaited code for its soon to be launched blockchain-based payments network.
The move offers developers a chance to download and test the software. It also allows anyone to spin up a node and help power the network.
Telegram’s new blockchain is called the Telegram Open Network (TON) and is designed to power real-time transactions using the company’s new cryptocurrency called Gram. It will be integrated into Telegram’s popular app, which boasts more than 300 million users.
According to a leaked white paper, the network is designed to outperform Bitcoin and Ethereum’s transactions speeds and could ultimately compete with Visa and Mastercard.
“Bitcoin has established itself as the digital gold, and Ethereum has proved to be an efficient platform for token crowd sales. However, there is no current standard cryptocurrency used for the regular exchange of value in the daily lives of ordinary people.
The blockchain ecosystem needs a decentralized counterpart to everyday money — a truly mass-market cryptocurrency. Despite their revolutionary potential, existing cryptocurrencies lack the qualities required to attract the mass consumer.
There are three main hurdles in today’s environments: The established blockchain networks — Bitcoin and Ethereum — play important roles in the ecosystem, but don’t have the capacity to replace VISA or Mastercard. In their current architecture they are limited to a maximum of only 7 transactions per second for Bitcoin and 15 transactions per second for Ethereum, resulting in insufficient speeds and higher transaction costs.”
In March of 2018, Telegram revealed it raised $850 million from some of the biggest venture capital firms in Silicon Valley to create its own crypto asset. That number is in addition to another $850 million the company raised in February, bringing its total proceeds to $1.7 billion.
After spending well over a year in development, Telegram is now set to officially launch TON by October 31st at the latest.