Updated: Dec 20, 2019
Ontology is a blockchain-based decentralized platform, built to accommodate and support other blockchains. The platform is open to enterprises, in both public and private sectors, so that everyone can benefit from its technological innovation. Ontology technology is in direct competition with Ethereum, giving businesses the option to store data privately or publicly. Ontology’s native token is called ONT, which allows holders to be a part of the decision-making process in the network.
This guide will highlight the purpose for which Ontology is designed, the creators behind it, how it works and various uses.
What is Ontology Designed For?
Ontology was essentially created as a way for businesses from various industries and of all sizes to integrate blockchain technology in their company, without changing their existing infrastructure or system completely.
The founders wanted to make the integration and implementation as easy and user-friendly, so that businesses, with no prior blockchain knowledge, could also benefit from it.
Who Is the Team Behind Ontology?
Ontology was created by a Chinese company called OnChain, in 2017. The company is led by founders Da HongFei and Erik Zhang. OnChain is known to be very successful in the crypto industry. The duo is also the team behind the famous NEO blockchain, which has now turned into a multi-billion dollar project.
How Does Ontology Work?
Ontology works with NEO to make blockchain technology and digital tokens, more acceptable in the world of business. The Ontology framework is not intended to act as a single blockchain. Instead, it is created to allow businesses to make use of both private and public blockchains.
This makes Ontology act as an essential bridge between the real world and digital space in a trust-less environment. The platform works on a consensus mechanism, to confirm and verify transactions. ONT uses VBFT, which is a combination of three different models - Proof-of-Stake (PoS), Byzantine Fault Tolerant (BFT) and Verifiable Random Function (VRF).
This combination helps power the Ontology Consensus Engine (OCE), which in turn is tasked with guaranteeing the fairness and randomness of the consensus generation, and to ensure that finality can be quickly reached.
Besides ONT, the Ontology platform has another native token called Ontology Gas (ONG). This token is system generated and is used towards powering network storage and execution of smart contracts, among other similar utilities. This two-coin system is similar to the one used by NEO.
What are Current and Future Applications of Ontology?
The potential of the Ontology network in the real world is practically unlimited. It can be used to transfer data of all types – both sensitive and generic. The blockchain protocol is created to benefit businesses of all types, as it allows data to be transferred in a transparent, secure, quick, and cheap manner.
Ontology also provides a platform for Dapps and smart contracts, which are supported by the NEO blockchain. This essentially helps in opening doors to complete automation, which allows organizations to perform data transactions without the need of a third party to verify it.
The network provides interoperability between different blockchains. Businesses can choose which data should be available on the public blockchain, and the ones that can be made private.
A potentially useful application of Ontology is thought to be in the medical sector. Currently, medical records are created by doctors and stored in the centralized system by institutions. This can prove to be an issue when patients look for a second opinion or change cities.
Ontology project can easily solve these issues with the help of blockchain technology. Medical records can be placed on a blockchain system, where each organization can decide which information needs to be shared.
The value of ONT has grown relatively quickly since its initial launch. A notable feature is that there was no ICO to launch the Ontology coin, but an air-drop. Currently, the coin is at an all-time high of more than a billion dollars, claiming a popular status in the cryptocurrency market.
However, the upcoming partnerships will determine the coin’s potential to grow more. A single major partnership could sky-rocket the price of ONT.
Conversely, Ontology operates in one of the strictest nations where cryptocurrency is concerned. The Chinese government has already put a stop to ICOs and cryptocurrency trading. They are now considering adding mining to the restricted list.
The government of China could easily put a stop to Ontology if they feel, the crypto platform’s ideology is against their rules. A good sign is the recent meeting between the Ontology executives and the Chinese government.