The crypto payments industry is growing rapidly, with millions of users now turning to cryptocurrency for transactions. Blockchains like TON have become popular due to their advantages, including fast transfer processing speeds and low fees. However, as the number of transactions increases, so does the need to identify recipients accurately. This is where the memo tag helps.
Memo is an important tool for ensuring the correct execution of transactions. Its use is especially relevant when working with centralized exchanges and wallets. In this article, we will look at what tag memo is, how it is used in the TON network, and why it is important.
TON Blockchain: Basic Information
The TON (The Open Network) blockchain was originally developed by the Telegram team, but later, the project became independent. Its goal was to create a decentralized platform with high bandwidth and low commissions. Although the project is relatively young, it has already formed its own ecosystem, including wallets, exchanges, proxies, hosting, and other resources.
Now, the TON network is actively used for payments, including transfers in the cryptocurrencies Toncoin and Tether, which makes it a convenient tool for e-commerce. Our article explains how to accept TON payments.
The main advantages of the TON blockchain are:
- Transaction speed. The average confirmation time on the network is only a few seconds.
- Low fees. Thanks to the advanced consensus algorithm, the network's transfer costs are significantly lower than those of other blockchains.
- Wide functionality. In addition to cryptocurrency transfers, TON supports smart contracts and the development of decentralized applications.
TON is rapidly gaining popularity among cryptocurrency users, making the need to understand a memo tag increasingly urgent.
What Is a Memo in Cryptocurrency. Understanding the Сoncept
Memo is an additional field used in crypto transfers to identify the recipient or the purpose of payment. It can contain numbers, letters or a combination of them. For example, when transferring several payments to one address, the memo tag allows you to distinguish to whom a particular transfer is intended.
This mechanism is used not only in the TON network, but also in other blockchains:
- In the XRP network, it is called destination tag.
- The Stellar (XLM) and EOS networks use a similar field to indicate the destination of a transaction.
- In some wallets, the memo tag or its analogs are mandatory for making a deposit to an exchange.
The key role of a memo is to prevent confusion when sending funds. For example, if an exchange uses one address for all users, the memo helps identify who owns the incoming payment.
Many users wonder what happens if they don't include a memo when transferring funds? If the tag is missing, the payment may not be credited correctly or may not reach the recipient's account at all. Therefore, when using cryptocurrency systems, paying attention to the instructions is important.
Features of Memo Tag Usage in the TON Network
In the TON blockchain, the memo tag simplifies transaction processing, especially when one address is used to accept payments from different users. This is relevant for centralized exchanges and services like CryptoCloud that help businesses accept cryptocurrency.
Here are the main features of memo tag on the TON network:
- Easy identification. If you specify a memo when transferring, your transaction will always be accurately identified.
- Mandatory. Some platforms require memo tag to be obligatory. Without it, the payment may be rejected.
Let's take a look at how cryptocurrency payments are made with the memo tag specified, using CryptoCloud as an example:
- The buyer proceeds to the checkout on the seller's website and selects cryptocurrency payment.
- The system converts the order amount and provides payment details - wallet address and memo tag.
- The customer enters the data in their wallet and confirms the transfer.
If the memo is incorrectly or not specified at all, the payment may not be processed. In this case, the system will find the transaction in the blockchain and notify the user about the need for additional payment or data re-entry.
How to Pay in the TON Network with TON and USDT
Let's consider the step-by-step algorithm of paying with Toncoin or Tether in the TON network using CryptoCloud as an example:
- Checkout. The user selects a product or service on the merchant's website and proceeds to payment.
- Selecting a payment method. CryptoCloud is specified as the payment method, and then the currency is selected (for example, USDT in the TON network).
- Obtaining details. The system generates the wallet address and memo tag, which are displayed on the screen.
- Wallet data entry. The user copies the address and memo tag, specifies them in his wallet and sends funds.
- Confirmation of the transaction. After sending, the system searches for the transaction in the blockchain network and confirms the transfer. If insufficient funds have been transferred (e.g., the fee has not been accounted for), the system will notify the user that additional payment is required.
Cryptocurrency Transactions with CryptoCloud
CryptoCloud is a cryptocurrency processor with a user-friendly interface and a lot of useful tools. Among the advantages of the platform:
- Easy integration. You can connect payments on popular CMS using ready-made plugins, use API or HTML widget. There is also an option to accept payments without a website.
- Security. CryptoCloud uses encryption and protection from DDoS attacks, and stores user funds on cold wallets, providing maximum protection for merchants.
- Work with different blockchains and cryptocurrencies. The list of supported currencies and networks is constantly growing.
- Prompt technical support. Specialists will not only advise you on general questions, but also help you solve problems related to setting up and making payments.
CryptoCloud merchants can take advantage of incoming payments' auto conversion to USDT, create payment links, choose the payment side of the blockchain network fee and service comission, perform AML checks, and much more.
Importance of Memo Tag for Correct Transaction
The memo tag is an indispensable tool for users of blockchain networks like TON. It ensures correct transaction execution, ease of identification, and secure transfers. Specificing the memo is especially important when working with centralized exchanges and platforms.
CryptoCloud allows you to accept payments in popular cryptocurrencies using modern solutions for automatic transaction processing. Learn more about the system on our website.
