Russian Engineers Revived Telegram’s Blockchain

ByEdward Thompson

Aug 3, 2021

Cryptocurrency markets so far this year have remained uncertain, thanks to China’s ban on financial institutes from providing any services to crypto exchanges. The future of cryptocurrency markets would further enhance the uncertainty as Financial Action Task Force (FATF) is likely to announce its recommendations about the crypto market. However, earlier this week, IMF showed its concern.

Retail investors think that the global monetary framework is a barrier keeping cryptocurrency away from entering the mainstream. The trade war between China and the U.S and the aim of global dominance are some of the primary reasons countries are keeping pulling the legs of each other. The current crackdown against cryptocurrency markets is just an episode of these ambitions.

In 2018, worldwide cryptocurrency payments seemed possible. As a result, Pavel Durov provided the payment services to 500 million Telegram blockchain users. Telegram was to support the transactions of ‘gram’ token via its platform Telegram Open Network (TON).

This dream came to an end when the U.S Securities and Exchange Commission sued Telegram for illegally issuing tokens and demanded urgent action to prevent Telegram from “selling or distributing” tokens in the United States.

By 2020, the case worsened, and Telegram lost. Telegram was liable to pay a sum of $18.5 million in a civil settlement. Telegram also assured the court to pay more than $1.2 billion spent for token sales.

Crypto analysts criticized the verdict of the SEC. Speculators said that Telegram and its associated TON blockchain were treated so harshly, particularly when other private token offerings such as EOS were allowed to continue to operate after paying a fine. Like Telegram, EOS a Facebook crypto project was also developing a new cryptocurrency for its users.

However, the recent popularity of cryptocurrency trading in Russia revived Telegram. Russian opposition leader and the Russian community share the same vision. Pavel Durov’s vision of decentralization and political autonomy was adopted by many. Especially a group of Russian engineers who collected the open-source code.

The group recently formed the TON DeFi Alliance it’s the revival of Telegram’s aborted blockchain. Today, FreeTON is completely operated by the community. Even after talking to several members in an attempt to get a quote from the “front desk staff” of the project, the developer did not give a name. “We make decisions through the consensus of network verifiers,” is a common response.

After its revival, the project has attracted interest from institutional traders. These institutional traders are already attached with TON Labs and TONswap.

FreeTON officials said that their project is a multi-blockchain platform with the ability to carry on millions of transactions in few seconds. The reason behind such fast-paced efficiency is its ‘dynamic sharding mechanism.’

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