Ontology is an open-source blockchain built for users and corporate clients who want blockchain-powered platforms that value the safety and security of their data. Users have a single verifiable identity, giving them complete control over sharing their data online. This means that individuals can decide which information they use to identify themselves or to register for various apps and services.

Ontology provides tools like a bridge and wallet to enable seamless trades. It also has two utility tokens, the ONT token and the ONG token, which allow users to utilize the platform’s services fully. The ONT token powers the platform, while the ONG token is used mainly for gas and transaction fees.

History of Ontology

Ontology was founded by Jin Li, an experienced IT and blockchain solutions architect, and Andy Ji, the chief strategy officer. Ji is versed in technical architecture, management, and planning and has worked in companies such as China Financial Futures Exchange and Infosys. The platform has lingering ties to Onchain, a China-based B2B blockchain company in charge of NEO, formerly known as Antshares. The ONT token was launched as part of the NEO platform before the launch of the Ontology mainnet in 2018.

The Crunchbase platform reports that Ontology had three funding rounds in the first four months of 2018. The seed funding round was the biggest funding round, with 5 investors, including Redline DAO, 8 Decimal Capital, and DHVC, and an undisclosed funding amount.

How Does Ontology Work?

Ontology was created to provide companies with blockchain services. To achieve this, the company is equipped with a Verifiable Byzantine Fault Tolerance (VBFT) consensus mechanism. The Verifiable Byzantine Fault Tolerance (VBFT) consensus mechanism consists of a Proof-of-Stake protocol, the Byzantine Fault Tolerance algorithm, and a Verifiable Random Function.

The network’s core consists of two parts: the consensus network and the Consensus candidate network. The consensus network is in charge of all nodes that reach a consensus on transaction requests within Ontology. It controls the generation of blocks, maintenance of the network, and the distribution of consensus blocks to different node networks.

Meanwhile, nodes in the Consensus candidate network do not participate in the consensus but are synced with the consensus network and updated to the latest consensus block they control. The candidate networks also monitor consensus network status, validate consensus blocks, and maintain the Ontology network.

Within the VBFT consensus, proposal nodes are selected from the consensus network through the Verifiable Random Function (VRF). The selected nodes will then independently propose a block. The VRF then selects multiple verification nodes from the consensus network. Each selected verification node collects blocks from the network, verifies each block, and then decides which block requires the most attention.

Once completed, the Verifiable Random Function (VRF) selects multiple confirmation nodes from the consensus network to verify the voting results from the proposal nodes and confirm the consensus results, ending a round of consensus confirmation.

Main Features of Ontology

Ontology aims to be a decentralized hub that supports digital identity and connects private, public, and consortium blockchains. The network has features that set the network apart from other chains in the ecosystem. Some of these features include:

Distributed Identity System

Ontology offers users a multi-factor identity verification system designed for individuals, organizations, and other protocols. It helps ensure the privacy of data and helps build a trusting network.

Ontology ID

This is Ontology’s solution to digital identities. It is a self-sovereign identity control system that allows users to selectively share part of the data they want with third parties, such as other financial services, healthcare providers, or KYC purposes.

ONTO Wallet

The platform has its own wallet, ONTO, which supports tokenized assets and identity management. The wallet also gives users access to staking features and supports assets from other networks, such as NEO and Ethereum. Lastly, users can access decentralized applications (dApps) launched on Ontology.

Ontology DDXF

Ontology’s Decentralized data exchange framework (DDXF) is designed to allow users to represent the ownership of real-world assets on the Ontology network. It ensures that falsified assets do not scam consumers and limits the change in the value of tokenized assets to only the asset owner. This means only the user can change the price of tokenized assets.

Orange Protocol

The Orange protocol is Ontology’s solution for empowering users, builders, and developers with digital reputations. With the Orange Protocol, users and developers can maximize their reputations and use them to affect their value in the ecosystem.

Ontology Ecosystem

The ontology ecosystem is an open ecosystem built on the Ontology network. It utilizes a complex chain structure that allows different services and solutions to interact. The ecosystem has two components: the Ontology function chain, which provides trusted cloud services, and the Ontology ecosystem chain, which facilitates different on-chain business services designed to meet the needs of enterprises.

The ecosystem can identify real-world entities such as assets and objects through its identity solution. This allows the platform to provide one-step access to trusted applications, boosting execution speed and security. Paired with its data assetization solution and distributed data exchange framework, Ontology can execute, interact, and share business value decentralized and trusted.

The Ontology framework consists of multiple layers, each with distinct roles and duties that ensure the flow of the ecosystem’s operations. The first layer is known as the underlying layer, which provides decentralized infrastructure through blockchain technology. Next is the trust layer, which acts as middleware for the trust ecosystem. It uses an identity system to build a trusted account framework, adding features like account credit ratings to support upper-layer applications.

After the trust layer is the transaction layer, which connects to the value network used to provide high-value business services, including information assetization, exchange, sharing, and support for complex interaction services. The application layer is the final layer of the Ontology framework, which utilizes the functionalities of the transaction layer to deliver on-chain business services such as trusted search tools, integrated clients, and other application tools.

Ontology Dual-token System

The ontology relies on a two-token System, ONT and ONG, to power and secure the network. The token’s use in the network’s architecture allows for scalability and swift execution of small and large transactions.

The ONT token is the primary token of the platform that serves as a transfer and store of value on the Ontology network. In the network, it grants token holders governance rights and staking ability, helps to verify transactions, and boost network security. Additionally, ONT token holders earn rewards from staking ONT, earning them ONG tokens as added benefits for their involvement in the project.

The ONT token was launched in June 2018 as a NEP-5 token on the NEO platform. After the launch of the mainnet, the NEP-5 ONT tokens were swapped for native mainnet ONT coins. The coins were airdropped to NEO token holders and email subscribers.

The ONG token is used for the system’s gas and transaction fees. The ONG token is created immediately after a block is confirmed, thereby powering the Ontology network and paying users for keeping the mainnet running.

ONT Tokenomics

ONT has a maximum supply of 1 billion tokens, distributed to the community and through airdrops. It was distributed in the following way:

• Community Incentives and Partnerships: 12% of the total supply will be distributed for community incentives and partners, such as airdrops, bounty programs, and strategic partnerships.
• Ecosystem Development: 25% of the total supply is distributed to the development of the ecosystem.
• Technical Community: 10% of the total supply is distributed to the technical community in the form of rewards for developers to support the development and improvement of the platform.
• Institutional partners and investors: 28% of the total market supply will be distributed to investors and institutional partners, with no party getting more than 2% of the share.
• Ontology Team: To ensure the ecosystem’s growth, the ontology team will receive 15% of the total supply of ONT.
• NEO Council and airdrop: 10% of the total token supply was distributed as airdrops to the NEO council and holders.

Governance Model

Ontology applies an open governance framework that controls the Ontology ecosystem. It can use the in-chain governance or traditional consensus tools to make decisions on the platform.

Conclusion

Ontology is opening the gates of blockchain technology to enterprises, securing their user data and digital identities. By focusing on data privacy and security in an era of rising data security breaches, Ontology aims to bridge the gap between enterprises and the blockchain industry.

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