In most countries of the world, governments control cash flows. If the country’s economy is developed, this doesn’t stop people to use their money. But there are countries in which the government abuses its monopoly position and imposes restrictions even where this is not required.
Cryptocurrency is a method of relatively cheap and fast transfers across borders without censorship and the influence of state regulators. For example, you can remember how a billion bitcoins were transferred with an $80 commission. This is a ridiculous amount for large transactions.
The popularity of crypto is growing, so transactions through Bitcoin and Ethereum become much more expensive. This now works as a barrier to entry for new business players and other users. Due to the strict economic restrictions, there are blockchains that offer cheaper and faster transactions than the old market players.
Why the ecosystem is necessary
New blockchains need to develop their own ecosystems. This is necessary to reduce the entry threshold, bring transactions to a single standard, as well as reduce transfer fees and make the system convenient for all business players.
For the effective operation of such a network, several conditions are needed, let’s look at the example of the Free TON ecosystem:
Maximum network decentralization to avoid the attacks of regulators and authoritarian regimes. In this case, you need hundreds of validators located around the world. Such a system cannot be disabled.
Standardization. The standard is a document that describes what methods should be contained in the token smart contract, what parameters should be accepted, and what should be given at the output. This reduces transaction costs for users. Bringing it to a single standard removes a huge number of barriers and raises checks.
Transfer of stablecoins from the Ethereum and Bitcoin networks to the Free TON ecosystem network. In this case, the ecosystem provides fast and cheap transactions, which is especially important when working with small businesses and low-point transfers.
Development of Application Services. For the stability of the Free TON ecosystem, it must have classic services that will take on a new form: insurance, hedging, lending, deposit, and sharing services.
This makes the Free TON ecosystem one of the most promising options for development. This is a blockchain platform with a cryptocurrency that is built on the basis of the Telegram Open Network (aka TON) of the Durov brothers.
Free TON was created in response to the business needs to work with popular cryptocurrencies after raising the entry threshold on major platforms. This is a good technology that allows you to make the transactional business much more efficient. Especially businesses that used to work with Ethereum and with tokens that are based on it.
How Free TON works
One of the advantages of the original Telegram Open Network was the maximum decentralization of the network which excluded the possibility of disconnecting the network from regulators or authoritarian regimes. Free TON has the same features. The network has more than 400 validators, geographically distributed around the world: CIS, Europe, Asia, Africa, North and South America.
To completely disable Free TON, you need to disable each validator individually. This is technically impossible. But all transactions are transparent, which is positively perceived by governments and facilitates cooperation since the network is launched by the community and independent developers.
It has a bridge between Free TON and Ethereum. This tool allows you to transfer popular stablecoins to the system so that the Free TON itself becomes the main place of payment. This speeds up transactions and makes them cheap and affordable. And Ethereum can remain trustful and expensive storage.
On one side, stablecoins are blocked on a special smart contract in the Ethereum network, then the bridge releases the stablecoin inside the Free TON network in a one-to-one calculation. This feature is especially important for users who don’t want to pay large commissions. Free TON transfer commission is about from 4 to 5 cent.
The speed is provided by a decentralized token and the smooth operation of the blocks, they come out at a speed of five blocks per second.
Free TON is constantly evolving to achieve consistency with existing markets to simplify working with business representatives and reduce transaction costs.
Further plans are:
- Improve support for communication with users,
- Develop application services,
- Create its own decentralized exchange and own native stablecoins,
- Release price oracles and a new version of the decentralized bridge.
Free TON guarantees a reduction in operating costs for companies and their users, as well as a great way to remove unnecessary barriers and increase receipts by increasing the speed and power of processes.
The main part of the services in the world is small-point. To reduce the commission for transactions in FreeTON, you can take assets in Ethereum, transfer them to a faster platform and use them for payment in various services. The bridge is two-sided and all tokens that are made during Free TON can be transferred symmetrically in the opposite direction.
Creating a full-fledged blockchain ecosystem is a way to multiply the productivity of a small business, as well as the efficiency and power of a large company. Free TON does not seek to cause hype with its TON Crystal coin in the wake of the popularity of the ecosystem but helps existing projects to become better.