Ontology $ONT

Ontology $ONT

$602mil Market Cap

Volume: MXC, LATOKEN, Binance
Liquidity: Bibox, Binance, HitBTC
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Ontology was created in 2017 by the OnChain team.  This is the same team behind the NEO project and at the time there was genuine concern that this new venture would cause huge disruption of the NEO development ecosystem.

Headed by Da Hongfei and Erik Zhang, Ontology would separate it self from NEO by establishing itself as an Enterprise Blockchain Service provider.  Ontology was created as a means for businesses of all sizes to implement blockchain technology within their company, without having to completely change their current systems.

With over 190 partners and more than 200 core team members, Ontology stands out as one of the most heavily backed projects in the space.
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The Ontology token $ONT was originally a NEP-5 token built and based on the NEO token system.  With the Ontology MainNet launch back in mid 2018 these NEP-5 tokens were “token swapped” onto the Ontology native blockchain and they are no longer classified as NEP-5 token.  That said, there is still a very high level of compatibility through NEO/NEP-5 based wallets and applications.
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Today the $ONT token works in combination with $ONG through a dual-token model.  Simply this means $ONT is used for staking and powering the network, $ONG is the “gas” that has a higher circulating rate and helps to curb violent fluctuations of the original $ONT by eliminating friction in the staking process.

This two-token system also provides more flexibility in the cost of transactions and as $ONG is able to stabilize it’s increasing value the cost determination of the blockchain transactions can be increased or reduced depending on the needs of the system.

Without a blatant Proof of Stake consensus, Ontology runs on VBFT consensus and creates platform for this two token structure, making $ONT the governance token and $ONG the utility token.
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Featuring ONTO the mobile wallet, OWALLET the desktop wallet, and their blockchain explorer, this project was launched with the features and application required to easily provide their Blockchain-as-a-Service to their enterprise clients.

More recently a Decentralized Exchange has been developed on Ontology called “SEED Exchange”.  It offers on-chain trading of $ONT, $ONG, and $SEED and the core functionality of this app has been integrated into the ONTO mobile wallet.

Staking is the engine of this ecosystem and with the rise of Decentralized Finance we have seen countless projects take staking and reward schemes to the next level.  Ontology prides it self on a clean and fair staking process using smart contracts to secure the stake and produce the scheduled rewards.
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The Ontology Foundation has come under some pressure from the community as there have been major changes to the “Foundation Bonus”.  This bonus was introduced as a way for the tokens held in this centralized governing body to be distributed to the community as a bonus to their staking commitments.  Having got used to the reasonably significant reward over the last 8-12 months the community was a little put back when that bonus was cut by more then 95%.

The Foundation as introduced new rules, which is not uncommon, but this time it is very visible and deeply effects its community.

The proposed new rules are:

1) Based on the total effective ONT amounts, ONG bonus will be shared evenly amongst each staked ONT.

2) The bonus will be distributed to the top 49 nodes, and nodes will share the bonuses to their stakers according to the ratio they set.

This appears simple enough and they quote the need for “long-term community and ecosystem development” and “fair competition of PoS” as some of their reasons.

The idea is to drive the staking nodes (or pools as many refer to them) to determine what share of this bonus they will pay out and in turn will drive a deeper level of participation and decentralization.

It remains to be seen how deeply this changes the commitments of the Ontology stakers and community.
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In a brighter light Ontology has made some great steps toward advancing their platform beyond it’s initial capabilities.

In Korea there are no larger social media giants then Kakao.  Their blockchain project Klaytn has helped to produce a Korean version of the ONTO wallet and will be supported by Kakao itself.

“We see the huge potential of the Korean market. The blockchain technology is widely known in the country and many Korean companies are adopting the technology to transform and upgrade their businesses. More and more university students in the country are starting their own blockchain businesses after graduation in the hope of making their first fortune.”
-Jessie Liu, Marketing Director of Ontology
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Having been built over the NEO platform originally there was always the understanding the scalability would present itself as a long-term issue for Ontology.  While some of these issues were resolved with the MainNet launch there was still much to be desired.

In late 2018 Onology joined with bloXroute in a working relationship that would see the development of a scaling solution for the Ontology platform.  As products like ONT ID, and the growing management of products like ONTO and a Decentralized Data Exchange even a high performance blockchain like Ontology needed a speed upgrade.

In February 2020 this partnership appears to have a solution. 

By deploying a global blockchain distribution network (BDN), bloXroute helps scale blockchains, i.e., it can help increase the transaction per second (TPS) rate, often substantially. bloXroute’s BDN consists of two types of nodes: Relays are high-end servers distributed globally, and gateways, co-located with blockchain nodes, are end-point systems whose main objective is to translate the native blockchain messages to bloXroute’s messages, and vice versa. Currently, bloXroute and Ontology are jointly working on developing a bloXroute gateway for Ontology.

Once developed, it will increase a growing need for efficiency, scalability, and decentralization across the platform, making it ready for the huge amount of traffic that would come with global adoption.
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Ontology’s token is offered across many Asian and international exchanges but there are few options beyond spot trading.  That all changed in early 2020 when Binance (one of the largest international exchanges in the world) introduced a Perpetual Contract for Ontology and the $ONT token.

Binance Futures users will be able to choose between 1x and 50x leverage.

Here are some of the main specifications for the contract:
Base Asset: ONT
Quote Asset: USDT
Settlement Asset: USDT
Contract Unit: 1 ONT
Base Initial Margin Rate: 2.00%
Base Maintenance Margin Rate: 1.00%
Liquidation Fee: 0.5%
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Ontology is a platform built on trust and cooperation.  This public blockchain has the ability to build an ecosystem of technical, financial and business products for any industry in any country.  With the support of a decentralized community and token ecosystem the blockchain, although public, remains very secure while providing the transparency that blockchain technology is based on.

The bumps in the road and a normal part of a young and growing industry and Ontology will not be an exception to them.  There have been several through Ontology’s past but the financial and social backing of the project remains impressive.  Through the coming years, not all Blockchain-as-a-Service will succeed, but with the skill, adaptation and strength of this ecosystem, it should not come as a surprise to see Ontology at the front of the pack.

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