How Does Ontology Blockchain Work?
Data is the new oil. From the beginning of the 21st century, data is similar to what oil was in the 18th century, an immensely untapped valuable asset. Almost every organization runs on data but many organizations use legacy technology that creates isolated data silos that prove to be detrimental from an operational perspective as well in terms of the outcome. Today, what organizations need is a global data exchange technology that allows data to flow freely among concerned parties. Enter Ontology blockchain. But, what is Ontology and how does it work? Let’s find out.
What is Ontology Blockchain?
Founded in 2017 by a Chinese Company OnChain—under the leadership of Jun Li, Erik Zhang, and Da Hongwei—Ontology is a highly efficient open-source blockchain that specializes in solving issues related to data integrity (ensuring data accuracy and consistency) and digital identity management and security.
The trio also founded the Neo blockchain. Ontology allows organizations to seamlessly integrate blockchain solutions into their existing legacy systems without any friction all while retaining control of their sensitive data.
Connecting your Ontology Address to ZenLedger For Your Crypto Tax Forms
- To import your Ontology transactions into ZenLedger for your crypto tax forms, all we need is your public address.
- Select the proper blockchain or wallet from the dropdown list.
- Paste your address into the address field in ZenLedger.
- Select if the wallet is based in the USA or not.
- Then hit the ADD COIN button
How Does Ontology Blockchain Work?
Ontology runs on a special Verifiable Byzantine Fault Tolerance (VBFT) that is a blend of Byzantine Fault Tolerant (BFT), Verifiable Random Function (VRF), and Proof-of-Stake (PoS) consensus mechanism. As a result, it is blistering fast as opposed to proof-of-work (PoW) allowing noticeably more transactions per second.
VBFT also adds a remarkable amount of scalability to the structural PoS model, beefing up the verifiable randomness and security via the VRF node choosing process. Here, 100 percent of the nodes are not required to reach a consensus to validate a transaction. With BFT, only 2/3rd of the nodes need to achieve consensus to verify a transaction, providing shorter finality rates and combining the best components of each mechanism into a dynamic framework.
Speaking of framework, Ontology’s distributed data exchange framework, (DDXF) lets organizations and people trade data within the confines of regulatory compliance. Be it a data provider, a developer, or a consumer, Ontology has made a decentralized solution for peer-to-peer, cross-chain exchange of data. DDXF is creating a paradigm shift for data security and privacy, enabling users to cryptographically authorize and access data.
Following the introduction of Ontology blockchain’s mainnet, the network relies mainly on two tokens to fortify its power and security:
- Ontology Coin (ONT)
- Ontology Gas (ONG)
Ontology Coin (ONT)
ONT is the primary coin of the Ontology ecosystem, which is based on the NEO platform, and was originally known as the NEP-5 coin. However, after the ONT mainnet kick-off, Ontology swapped NEP-5 tokens for ONT. In the Ontology blockchain ecosystem, the token holders can vote on future proposals and updates to the protocol. Additionally, ONT holders can stake their tokens, which helps verify transactions on the network, and in turn, they receive staking rewards in Ontology Gas Token (ONG) for their efforts and contribution to the network.
Ontology Gas (ONG)
This token is generated every time a block is confirmed and added to the blockchain. In a way, ONG powers the Ontology mainnet allowing users to earn transaction fees to keep the network operational. Additionally, it is used on the blockchain to perform operations such as deploying a smart contract.
Ontology is Reinforcing its Cross-Chain Functionality
In 2020, Ontology greatly enhanced its cross-chain interoperability by partnering with Switcheo (a decentralized cryptocurrency exchange on the NEO blockchain) and NEO itself to establish PolyNetwork, a global, heterogenous cross-chain interoperability protocol. PolyNetwork’s primary functions are:
- Provides a new infrastructure to DeFi developers to create cross-chain compatible decentralized applications
- Supports both homogenous and heterogenous chains such as NEO, Ethereum, and Cosmos
- Permits easy cross-chain transactions while reducing partially overlapping smart contracts
- Enables open but secure data and tokenized assets transfer, which increases scalable cross-chain transactions
Other than the above features, Ontology offers the fundamental benefits that a blockchain platform can provide:
- Self-executing smart contracts that not only automate processes but also increase business efficiency
- Secure identity proofs without the user having to disclose sensitive documents such as the passport
How to Buy Ontology Coins?
There are two ways of buying this coin:
- Buying with Crypto
- Buying with Fiat Currency
Buying with Crypto
Buying with Fiat Currency
If you don’t own crypto and want to buy ONT with fiat currency, popular crypto exchanges such as Coinbase, Kraken, Bitstamp, and more can facilitate the purchase. Open your account on these exchanges and verify your identity by providing your full name, address, Social Security Number, and some other basic details.
Once you’ve done that, buy a wallet to store your tokens. Buying a wallet is optional as you can leave your coins on the exchange but in case the exchange gets hacked, you can lose all your coins. Hence, users often use either software or hardware wallets to keep their crypto safe. Software wallets are free but they are connected to the internet and are less secure than hardware wallets which are physical devices that are only connected to your computer via a USB device, offering more security.
After opening an online account and buying a suitable wallet, all you need to do is add funds to your account and buy ONT. Once bought, shift your tokens to your respective wallet.
Ontology has successfully gained momentum and a reputation in the crypto space and in 2021, with the platform having around 100 dApps running on their ecosystem. Furthermore, Ontology has a few high-profile partnerships such as Daimler, an automobile manufacturer, and Welcome Home, blockchain-based identity verification and in-vehicle experience service provider. With such partnerships and a highly efficient blockchain, Ontology has potential to grow in the near future.