What is Ontology?
Ontology is a public blockchain platform that specializes in providing decentralized identity and data management solutions. The platform aims to solve key issues such as identity security and data integrity by using a range of distributed ledgers and smart contract systems. Ontology enables a decentralized network architecture that allows for greater flexibility for enterprises, enabling them to develop custom blockchain solutions to meet their unique demands.
ONT is the native cryptocurrency of the Ontology network and serves as the primary means of both storage and transfer of value on the network. Ontology was founded by Chinese company Onchain in 2017 and launched its mainnet in June 2018. Unlike most blockchain projects, Ontology did not hold an initial coin offering (ICO), but rather opted for a private sale and airdropped ONT tokens to NEO holders and those signed up for its email list.
The Ontology team created its own consensus mechanism, called Verifiable Byzantine Fault Tolerance (VBFT), which is a hybrid algorithm that combines Proof of Stake (PoS), Verifiable Random Function (VRF), and the Byzantine Fault Tolerance algorithm (BFT). VBFT is designed to be suitable for both public and private blockchain applications.
The Ontology ID system is a framework that links people, data, and services by using a decentralized identity protocol based on blockchain and cryptographic technology. ONT ID allows for trustworthy collaboration by safeguarding user privacy and data security. Users are not required to disclose all of their credentials when revealing their identity to third parties.
In addition to ONT ID, the project also offers ONTO Wallet, a decentralized app (dapp) for identity and asset management. The wallet offers financial audit, decentralized identity, data security, on-chain reputation, cross-chain transactions, and seamless integration between web and mobile.
ONT is used primarily as a means of storage and transfer of value on the Ontology network. It can also be used for staking in the consensus mechanism and for paying for on-chain services through the use of ONG, a gas token that is periodically released by ONT. The token also has delegated governance capabilities, allowing holders to vote on network changes and developments.
In addition to its use as a medium of exchange and store of value, ONT plays a crucial role in the Ontology ecosystem's governance structure. ONT holders can vote on important network decisions, such as the selection of new consensus nodes and the allocation of funds for development and partnerships. These governance capabilities provide a level of community participation and decentralization that is rare in many blockchain projects.
ONT is also used as collateral for staking in the Ontology network's consensus mechanism, VBFT. By staking ONT, users can become consensus nodes, which are responsible for validating transactions and maintaining the network's security. The more ONT a user stakes, the greater their chances of becoming a consensus node and earning rewards in the form of ONG.
ONT's dual-token model, with ONT as the primary token and ONG as the secondary token for on-chain services, also provides an additional layer of functionality and flexibility for users. ONG can be used to pay for various network services, such as smart contract execution and data storage, and can be converted back to ONT as needed.
Overall, the Ontology project's focus on decentralised identity and data management, combined with its powerful blockchain infrastructure and governance capabilities, make ONT a unique and valuable token in the blockchain space. With its continued development and partnerships, it has the potential to become a key player in the future of decentralised systems and applications.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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