Last Updated on
By now, blockchain technology has received widespread recognition for its potential to revolutionize whole industries.
Regardless of whether you’ve just launched a startup, or have been working for years in a major corporation or managing a small business, sooner or later, you’ll have to implement blockchain technology to stay ahead in the game.
If you know nothing about this technology or fear you don’t know enough, we have the right network of public blockchains for you. Ontology is a distributed trust-based platform that allows businesses to use this technology and still keep control of their sensitive data.
Ontology is a blockchain/distributed ledger network which combines a distributed identity system, distributed data exchange, distributed data collaboration, distributed procedure protocols, distributed communities, distributed attestation, and various industry-specific modules. Together this builds the infrastructure for a peer-to-peer trust network which is cross-chain, cross-system, cross-industry, cross-application, and cross-device.
The following definition is taken from Ontology’s White Paper, released in 2017 together with the platform itself. Ontology is a highly performant blockchain developed by OnChain, a world-leading company for blockchain-based projects.
The company is spearheaded by two Chinese entrepreneurs, software engineers, and crypto advisers hired by the Chinese government, Da Hongfei and Erik Zhang. This is the same team that has created NEO, a cryptocurrency and payment network of the new smart economy.
Ontology was created to cater to the needs of businesses around the world that want to incorporate blockchain technology but lack the knowledge of how to operate this type of distributed network.
Moreover, current blockchain networks have a lot of shortcomings when it comes to establishing trust. These include the lack of privacy protection and transparency, ineffective methods for identity verification, false information, as well as user data misuse and data exchange security issues.
Ontology promises to solve these problems by offering a full-fledged distributed trust system with mechanisms that businesses can customize and apply according to their needs.
Eliminating the learning curve can lead to one thing only and that’s the global adoption of blockchain technology for corporate work.
Ontology has a native token simply called the Ontology coin and abbreviated to ONT. The interesting thing is that there wasn’t an Ontology ICO to raise money for the project, only funds from private investors.
Instead, in March 2018, the coins airdropped to NEO coin holders, plus 1,000 ONT tokens were given to everyone who had previously subscribed to the Ontology email newsletter.
This is how the ONT token distribution is supposed to go like:
- 28% goes to institutional partners;
- 25% goes to the development of the Ontology ecosystem;
- 15% goes to Ontology core team;
- 12% goes to the Ontology community;
- 10% go to the NEO Council;
- 10% goes to Ontology technical community rewards.
The ONT supply is hard-capped at 1 billion ONT. At first, the coin was a NEP-5 token which means that it was compatible with the NEO blockchain until the Ontology MainNet launched in June 2018.
When that happened, the Ontology blockchain started producing another cryptocurrency as well, Ontology Gas (ONG), used to pay fees for the services offered by the platform among other things. Think about Ethereum and Neo’s GAS tokens.
Ontology Trust Network
Ontology provides compatibility support for complex technological systems, whether that be existing blockchains or traditional information systems. All systems feature decentralized entity management with support for main protocols and different password standards. Ontology also provides systems for secure data storage, hardware options for key management, and encrypted data analysis. (Ontology’s White Paper)
The Ontology platform promises to build a strong trust network by focusing on and providing:
- Decentralized and Multi-Factor Identity Verification.
On Ontology, users can create an organizational as well as specialized identity verification. For organizational identity verification, users can provide a student/employee ID if it’s an academic institution or just a regular employee ID for other businesses. The specialized one can be established by using industry-specific and legal requirements.
Users, or in Ontology’s terminology entities, can customize and choose their own verification requirements and methods to enjoy a trustless environment. At the same time, they don’t have to worry about the privacy of any shared information as the data is securely stored in decentralized databases.
- Distributed Ledger Technology.
The distributed ledger both stores data and keeps a record of its use. “Each data request, data matching, data transfer, and data usage is attested to the ledger, forming a complete private record of the data use” (Ontology’s White Paper).
The ledger also uses data identifiers (ONT Data ID) and data resource identifiers (Data URI) to match and verify the identity verification requirements. All these trust features are very useful for businesses that want to create smart contracts with their partners, or just store some of their data privately on the blockchain.
- Consensus Mechanism.
For a blockchain network to be decentralized, it has to use a consensus mechanism built on cryptographic proof.
Ontology uses a Verifiable Byzantine Fault Tolerance (VBFT) as its core consensus algorithm. As a hybrid algorithm, it combines three different models: Proof-of-Stake (PoS), Byzantine Fault Tolerant (BFT), and Verifiable Random Function (VRF).
It has a greater level of randomness and fairness which in turn increases the blockchain’s scalability and transaction process power.
Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided.