Bitcoin, introduced in 2009, was a revolutionary digital currency solution. However, it had a critical limitation: its transaction capacity was significantly inferior to that of established centralized payment systems like Visa, Mastercard, Alipay, and WeChat Pay. While Bitcoin’s blockchain could process only about seven transactions per second (tps), traditional payment systems could handle over 6,000 tps.

In the years that followed, Ethereum gradually emerged and by 2015-2016, it increased transaction capacity to 15 tps. Ethereum also introduced more advanced smart contract technology than Bitcoin, driving the diversification of tokens and ushering in the era of Initial Coin Offerings (ICOs). This innovation was the catalyst for the subsequent rise of Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs). NFTs further evolved to serve as digital name systems (DNS) and are poised to become the foundation for future Digital Identities (DIDs).

In 2018, Telegram spearheaded the ICO wave, designing a cutting-edge blockchain structure known as the TON network. With a high-speed sharding system, smart contracts, and a Proof-of-Stake (PoS) architecture, it aimed to maximize blockchain’s tps. Despite facing numerous legal challenges from 2018 to 2020, by 2024, the TON blockchain had proven capable of processing up to 100,000 transactions per second, making it possible to surpass traditional payment systems.

While Bitcoin and Ethereum might not become widely usable payment systems due to their transaction limitations, the TON blockchain, capable of 100,000 tps and combined with Telegram’s 1.4 billion registered users, will likely set the standard for the next generation. The blockchain supports advanced features like Jettons (native tokens) and inscription-based TON-20 tokens. Together, Telegram and TON have the potential to become the ultimate global super app, transcending beyond just messaging and payments to encompass all facets of our next-generation digital lives.

Frequently Asked Questions (FAQ)

Q: Why is Bitcoin limited to 7 transactions per second?

Bitcoin’s 7 tps limitation stems from its design choices: a 1MB block size limit and 10-minute block time, prioritizing decentralization and security over speed. The blockchain was designed to be a secure store of value rather than a high-throughput payment system like Visa.

Q: How did Ethereum improve on Bitcoin’s transaction speed?

Ethereum increased transaction capacity to 15 tps by reducing block time from Bitcoin’s 10 minutes to approximately 13-15 seconds. More importantly, Ethereum introduced smart contract functionality, enabling complex programmable transactions beyond simple value transfers.

Q: What makes TON capable of 100,000 transactions per second?

TON achieves 100,000 tps through dynamic sharding technology, which divides the blockchain into multiple parallel chains (shards) that process transactions simultaneously. Combined with Proof-of-Stake consensus and optimized smart contract execution, TON scales horizontally unlike Bitcoin and Ethereum.

Q: Can TON really compete with Visa and traditional payment systems?

Yes, TON’s 100,000 tps capacity significantly exceeds Visa’s average throughput of ~6,000 tps. With integration into Telegram’s 1.4 billion user base and low transaction fees, TON is positioned to become the first blockchain capable of supporting global-scale payment infrastructure.

Q: What role does Telegram play in TON’s success?

Telegram provides TON with built-in distribution to 1.4 billion users, creating an instant user base for blockchain adoption. The integration enables seamless wallet functionality, payments, and decentralized applications directly within the messaging app, reducing barriers to cryptocurrency adoption.

Conclusion The journey of blockchain technology has seen tremendous advancements since the inception of Bitcoin. From the introduction of Ethereum’s smart contracts to the high-speed capabilities of the TON network, blockchain has continued to evolve to meet the demands of a digital future. With its unprecedented transaction throughput and integration with the popular Telegram platform, the TON network stands ready to define the future of digital finance and communication.