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Telegram Is Driving Crypto Adoption, Despite Bad News

Sep 4, 2024

As a seasoned crypto investor with roots deeply entrenched in this digital frontier since its inception, I find myself captivated by the audacious strides Telegram has made in democratizing Web3 and ushering in real-world crypto adoption. The recent legal turbulence surrounding Telegram and CEO Pavel Durov is a mere blip in the grand scheme of things, overshadowed by the groundbreaking advancements that have taken place within its ecosystem.

Due to Telegram’s persistent commitment to openness and unrestricted communication, symbolized by its paper plane logo, the messaging platform and its CEO, Pavel Durov, have found themselves in legal disputes. Nevertheless, it’s crucial to recognize that this same global digital freedom provided by Telegram has significantly fostered the widespread use of cryptocurrencies as well

If you’ve overlooked it, remember that the concept of Web3 – where users can secure digital ownership through cryptography, blockchain, and digital assets – is flourishing on Telegram, in fact, quite significantly. Essentially, Web3 is accessible right on your smartphone, making it a significant and often under-appreciated advancement amidst the mostly unfavorable news about Telegram recently

Crypto payments come alive

The surge in Telegram’s role for cryptocurrency adoption can be linked to the revival of The Open Network (TON) blockchain. Known as one of the world’s most widely used messaging apps and digital platforms, with over 950 million users, Telegram has played a significant part in fostering communities worldwide. Despite encountering SEC enforcement in 2020, TON’s blockchain was rejuvenated by its community and is now thriving
As an analyst, I’m curious about this development: It seems that Telegram, distinct from The Open Network Foundation’s protocol-level work, has been incorporating TON‘s blockchain into their app. This integration, which includes the possibility of Toncoin payments for in-app advertising and stablecoin integration, was first introduced in April 2024
Telegram Is Driving Crypto Adoption, Despite Bad News
Since the integration of cryptocurrency-focused functions within Telegram, the utilization of TON‘s blockchain has witnessed a significant increase. As reported by TON Stat, an aggregator of such data, daily on-chain transactions on TON have consistently exceeded 3.5 million since the introduction of payment and stablecoin options in April 2024

Unpacking Web3

Using Web3 technologies, intermediaries such as banks exert less of a restrictive grip on financial opportunities, making it easier for individuals with just a smartphone to participate. This is one of the strengths of Web3 – it offers potential for those who may be financially disadvantaged to have equal access and involvement

Sure!

This isn’t about traditional crypto enthusiasts or financial investors getting involved. Instead, it’s mostly ordinary people playing these games because they enjoy them. Granted, these games may not be groundbreaking, but the sheer number of players, in the millions, shows that Web3 is becoming mainstream – and Telegram is a means for this to happen

The TON blockchain, with its distinctive architecture utilizing “workchains” for processing numerous transactions, offers greater throughput compared to many other blockchains. However, during the distribution of its DOGS token via the Lost Dogs airdrop, validators using outdated hardware on TON experienced difficulties in maintaining pace, resulting in two shutdowns. This incident has shed light on the level of load (and necessitated revisions to the validator rules for TON) needed to accommodate large numbers of consumers within a consensus-based blockchain system
Simplifying mass adoption of cryptocurrency for vast user populations has faced numerous challenges, as those who have been active in the field for some time are well aware. In simpler terms, expanding crypto to cater to millions upon millions of users has been difficult due to growth constraints – until Telegram and TON

Telegram natives to crypto natives

Games like Lost Dogs, Hamster Kombat and the Elon Musk-themed X Empire within the Telegram ecosystem are onboarding millions to crypto. Many users don’t realize it or even care. Getting people’s attention via gaming isn’t revolutionary. But Telegram games are a source for mass adoption without having to onboard heavy crypto concepts at the start. Most of the world simply does not care a lick about brain-fuzzy intricacies like private keys, paying for gas and staking.

It’s perfectly acceptable since most mini-app users aren’t familiar with the world of cryptocurrency; instead, they are avid Telegram users. They engage in conversations with their friends on Telegram, follow topics they find interesting through groups, and pass their leisure time playing games on their phones. When these popular mini-games release a rewards stage labeled “airdrop”, users receive the earnings they’ve accumulated. For instance, DOGS boasts a market capitalization of more than $500 million, as reported by CoinGecko

Disclaimer: The opinions stated within this article are those of the writer and may not align with the perspectives of CoinDesk, Inc., its proprietors, or associated entities.

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2024-09-05 19:12