Ontology Review: What Makes Ontology Be a Trusted Network?
Ontology is an ambitious blockchain project launched by famous Chinese company Onchain in 2017. Its main goal is to remove all the barriers between the blockchain and business sector by providing a unique, decentralized trust ecosystem.
In short, what makes Ontology so special is the fact that it allows businesses to use blockchain technology without having to boast an extensive knowledge of DLTs and similar technologies. The platform encourages technical community proposals and research to improve its base functions.
To enable business companies to connect to blockchain-based services, Ontology uses a series of protocol standards and decentralized management modules. This group of protocols is designed to help the adoption of the platform by companies from a wide array of industries.
The Ontology trust ecosystem
The platform places a strong importance on community contributions to help improve its functionality and relevance, as well as to ensure long-term sustainability. To accomplish this, as well as to ensure a wide range of adaptable functions, Ontology uses a framework (the network’s trust ecosystem) which consists out of 4 layers.
The first layer is presented by the distributed ledger that allows for cross-chain entity mapping and data transfer. The second one is represented by the core protocols that comprise the distributed trust framework, the third one (the application framework) consists of the application modules and protocols. The final layer is the decentralized feature set which includes a system for data collaboration and trading as well as content sharing.
Ontology achieves its incredible support for multiple blockchains through its decoupled architecture. To put everything into perspective, Ontology’s trust ecosystem is comprised of 4 network chains. The first chain is responsible for verification of people, wealth, and organizations, the second with verifying the apps and link them together, the third with modules, protocols, SDKs, and APIs. The fourth chain is responsible for linking all the chains together.
With the help of an exchange protocol and a trading module, Ontology implements a distributed data marketplace. This is important since most data networks tend towards decentralization. That is why data marketplaces have a very good chance of becoming collaborative systems where important exchanges of data, computational resources, and other digital resources can take place.
Ontology’s consensus mechanism is definitely something worthy of appreciation, as it is a combination of BFT (Byzantine Fault Tolerance) consensus protocol and VRF (Verifiable Random Functions).
What’s important about this novel type of consensus mechanism is the fact that it is designed from the ground up to mitigate against network forks, to have a low hash rate, as well as to be stable and reliable at all times.
The consensus mechanism is known as Ontorand Consensus Engine (OCE) or VBFT. Another interesting aspect regarding the consensus mechanism is the fact that Ontology implements the NeoVM virtual machine. This VM plays an important role in the ecosystem as it is used for executing smart contracts as well as for intelligent control logic of the application layer framework. The VM is also highly scalable as it employs a deterministic call tree technology that allows for dynamic sharding.
The ONT Token
One of the most important aspects of Ontology is the platform’s token that was initially airdropped to all NEO holders in March 2018. There is a limited supply of 1 billion ONT tokens. The token has the utility of a Gas token. Regarding the token’s distribution, the breakdown is as follows: 12% of the total supply will go to the Ontology community, 28% to institutional partners, 10% to the NEO Council, 25% to the development of the Ontology ecosystem, 10% as community rewards, and 15% to the Ontology core team.
According to CoinMarketCap (at the time of this writing), the ONT token is currently ranked 26th with a total market cap of $356,844,658 with a $42,874,897 24-hour trading volume and a circulating supply of 184,206,203 ONT at a price of $1.94 per token.
When it comes to buying ONT, users should know that purchasing ONT with fiat is not possible. The most popular trading pairs are Bitcoin and Ethereum. Some of the most popular exchanges from where ONT can be bought include Binance, Huobi, DigiFinex, OKEx, Gate.io, Upbit, and KuCoin.
ONT can be stored on a wide array of wallets, but some of the most popular choices include hardware wallets such as Ledger Nano S and Trezor. One other very good option is the Neon Wallet which will actually display the ONT.
Ontology is a very interesting and different blockchain project. Together with NEO, Ontology hopes to change the business world by providing flexible and more accessible blockchain technology.
In principle, Ontology bridges the gap between the business world and blockchain technology. While NEO is more focused on digital assets, Ontology focuses on trust, identity, data exchange, and data authorization.