Ontology

Exploring Ontology (ONT): A Comprehensive Guide

What is Ontology (ONT)?

Ontology (ONT) is a high-performance public blockchain project and distributed trust collaboration platform. Launched in 2018, Ontology was designed to bridge the gap between blockchain technology and business applications by providing a flexible and comprehensive infrastructure for implementing decentralized applications and smart contracts. As a dual-token ecosystem, Ontology consists of ONT and Ontology Gas (ONG), each serving distinct purposes within its ecosystem.

How Does Ontology (ONT) Work?

Ontology (ONT) operates on a unique consensus mechanism called VBFT (Verifiable Byzantine Fault Tolerance), which combines Verifiable Random Function (VRF), Byzantine Fault Tolerance (BFT), and Proof of Stake (PoS) elements. This hybrid approach enables Ontology to achieve high transaction throughput while maintaining security and decentralization.

The Ontology framework includes multiple protocol layers:

• The core ledger layer manages transactions and smart contracts
• The application framework layer provides tools for dApp development
• The trust ecosystem includes identity verification and data exchange protocols

ONT tokens function as governance tokens within this ecosystem, while ONG serves as the utility token for transaction fees and network resource payments, similar to how Ethereum uses ETH for gas fees.

Staking and Mining Ontology (ONT)

Ontology (ONT) doesn't utilize traditional mining but instead implements a staking mechanism through its consensus model. Here's how staking works in the Ontology ecosystem:

ONT Staking

Ontology incorporates a staking mechanism where ONT holders can stake their tokens to earn ONG rewards. The staking process in Ontology is referred to as "consensus participation." By staking ONT, users can:

• Earn ONG rewards generated by the network
• Support the security and operation of the blockchain
• Participate in network governance through voting rights

The staking rewards are distributed in ONG rather than ONT, creating a synergistic relationship between the two tokens. The annual yield for staking ONT typically ranges from 2.5% to 8% paid in ONG, depending on the total amount of ONT being staked network-wide.

Consensus Nodes

Instead of traditional mining, Ontology uses consensus nodes that validate transactions and create new blocks. These nodes are selected based on their stake size (amount of ONT), node performance, and community contribution. The VBFT consensus mechanism randomly selects node operators from the candidate pool, providing both security and efficiency.

What is ONT Used For?

Ontology (ONT) serves multiple functions within its ecosystem:

Governance

ONT tokens grant holders voting rights for network governance decisions, allowing stakeholders to participate in the platform's future direction and development.

Staking

ONT can be staked to participate in consensus and earn ONG rewards, incentivizing long-term holding and network security.

dApp Development

Developers use ONT to build and deploy decentralized applications across various industries, including finance, identity verification, supply chain, and more.

Cross-Chain Interoperability

ONT is utilized in Ontology's cross-chain solutions, facilitating asset exchange and communication between different blockchain networks.

ONT Distribution at Launch

Ontology (ONT) had a unique distribution model compared to many other cryptocurrencies. The initial distribution of ONT tokens occurred as follows:

• No ICO: Unlike many blockchain projects, Ontology did not conduct an Initial Coin Offering (ICO)
• NEO Council Airdrop: In March 2018, 20 million ONT tokens (10% of total supply) were airdropped to NEO holders
• Newsletter Subscribers: Another portion was distributed to Ontology newsletter subscribers
• Ecosystem Development: 35% of the total supply was allocated for ecosystem development
• Technical Community Rewards: 10% was reserved for technical community contributors
• Ontology Core Team: 15% was allocated to the founding team and Ontology developers
• Institutional Partners: 28% went to institutional partners and for community growth initiatives
• Community Rewards: 12% was designated for community rewards programs

The total supply of ONT was fixed at 1 billion tokens, with no inflation mechanism.

Additional Information about Ontology (ONT)

Dual-Token System

Ontology's dual-token system (ONT and ONG) creates a sustainable economic model. While ONT represents stake in the network, ONG is generated over time by holding ONT and is used to pay for network fees and services.

Ontology Trust Ecosystem

A key differentiator for Ontology is its focus on digital identity solutions through ONT ID. This framework allows individuals, assets, objects, and organizations to establish identity on the blockchain with self-sovereign control.

Enterprise Adoption

Ontology has secured numerous partnerships with enterprises across various sectors, particularly in Asia, helping to drive real-world blockchain adoption through its flexible architecture.

Trading Ontology (ONT)

Anyone can easily trade Ontology (ONT) on various cryptocurrency exchanges using the automated trading bot of Cryptohopper. This intuitive platform allows users to implement trading strategies without needing to monitor markets 24/7, making it accessible for both beginners and experienced traders to include ONT in their cryptocurrency portfolio.