TON blockchain claims sub-second finality with Catchain 2.0 upgrade

The Open Network (TON), an independent layer-1 blockchain integrated with the Telegram messaging application, said it has reduced block times to 400 milliseconds following the release of its Catchain 2.0 consensus upgrade. TON said the change brings payment transaction settlement to about 1 second, enables real-time trade settlement, and allows decentralized applications to operate at speeds comparable to traditional apps.

Catchain 2.0 upgrade and network performance

TON said the update builds on its Catchain consensus algorithm, first proposed in 2020. With the upgrade, the network targets near-instant settlement for applications built on TON, including those integrated into Telegram, which TON described as having more than 1 billion users worldwide.

Impact on validator rewards and inflation

TON said faster block times increase the number of blocks added to the chain, which in turn increases validator rewards. The network also projected that annual inflation would rise six-fold to 3.6% from about 0.6% after the update.

TON described inflation as the ongoing minting and burning of Toncoin within its ecosystem. It added that more blocks mean more validator rewards, strengthening staking incentives and bringing more TON into the network.

TON market snapshot

On Thursday, TON was trading up 2.3% at $1.28, according to CoinMarketCap. The token’s volume was $130.1 million, up more than 35%, and its market capitalization was $3.17 billion.

Telegram integration and related crypto features

TON’s announcement also referenced Telegram’s role in crypto access. Pavel Durov, co-founder of Telegram, said that despite government bans in Iran and Russia, significant numbers of people in both countries still use the app, citing users’ use of VPNs to bypass restrictions.

TON said its integration enables Telegram users to send crypto payments directly within the messaging application to other users, including businesses.

In February, TON said Telegram’s in-app crypto wallet introduced self-custodial vaults that allow users to earn yield on Bitcoin (BTC), Tether’s USDt stablecoin (USDT), and Ether (ETH). Earlier this month, the wallet launched perpetual futures trading within Telegram.

TON said the integration launched with perpetual decentralized exchange Lighter and supports perpetual futures trading across multiple asset classes, including crypto, equities, commodities, precious metals, and energy.