What is Ontology (ONT) Coin? A Guide for Beginners (2021)
A new detailed guide on ONT coin and on how you can earn crypto with it using Guarda Wallet.
|Consensus Mechanism:||Verifiable Byzantine Fault Tolerant (VBFT)|
Table of Contents
- What is Ontology Coin (ONT)?
- Ontology Coin History
- How Ontology Coin Works?
- Ontology Network
- Where to Store Ontology Coin?
- ONT Staking
- How to Mine Ontology Coin?
- Ontology Coin Future (Roadmap)
What is Ontology Coin (ONT)?
Ontology believes that decentralization is vital for user data protection and privacy. ONT is powered by what they call - blockchain for self-sovereign identification and data management. Ontology recently partnered with a cloud storage inventory management company, music streaming service, and much more is yet to be announced.
Ontology blockchain’s MainNet turned 3 years old this May. The coin’s price has remained the same for the last 2.5 years. Max ONT supply is 1 billion coins that equal 1 000 000 000 coins. Now about 870 million of them are circulating in the market and transactions.
Ontology Coin History
At its launch, Ontology chose to skip the popular initial coin offering (ICO) model in favor of a series of community distributions and airdrops of ONT cryptocurrency. ONT token has started as a NEP-5 token on the NEO blockchain.
On June 30, 2018, the coin was switched to its independent blockchain. That blockchain is called MainNet. From that moment on the project acts on its own separately from NEO.
How Ontology Coin Works?
ONT is coin compatible with Binance Smart Chain (BSC). That brings the needed speed of transactions along with adoption by different exchanges, wallets, and services. As an example of the adoption, you can now easily store, trade, and stake Ontology crypto with Guarda Wallet.
The network is based on its own MainNet blockchain. This is a high-performance, open-source blockchain specializing in digital identity and data.
That means Ontology network is best used for storing and managing vulnerable data. Real examples are:
- Online votes
- Medical patients data
- Warehouse management
- Logistics and supply chain logs These were just a few Ontology blockchain applications. The Ontology team is currently working to increase ONT usage by different industries and businesses all over the globe.
Where to Store Ontology Coin?
The most convenient tool to store Ontology coin is Guarda Wallet. The ONT chain also helps negate transaction network fees by generating and distributing free Ontology Gas (ONG) to ONT holders based on their holdings.
ONT Staking is a decent way to support Ontology network security and earn passive income along the way. You need to buy or transfer at least 1 ONT and keep it in your wallet. Then you receive a reward if you keep it long enough. The method works pretty much the same just like in other staking programs.
The staking reward is paid in Ontology Gas, ONG. The reward period is around seven days on average. Even though it may be from 17 hours to 21 days depending on the frequency of transactions in the network.
The reward period is called a consensus round. It is simply the time period needed to create a certain amount of blocks in Ontology blockchain. This amount is set by the blockchain design to be 60 000 blocks.
That means that your staking reward is formed right after another 60 000 blocks are created and added to the blockchain. This is why staking reward periods may be different from round to round - because it only depends on the frequency of transactions within the blockchain.
But generally, it takes around seven days for you to gain your first interest when you join ONT coin Staking.
Staking process is active only until the stake cap isn’t reached. Stake cap is a total ONT capacity that can be applied to staking.
Therefore, it may be more profitable to join Ontology token staking at the very start of the staking. That’s because you will not care about stake cap, and will be able to do staking for quite a long time and participate in a lot of staking rounds.
So, don’t think for too long about deciding whether to join Ontology cryptocurrency staking or not.
read more about ONT Staking, learn yield numbers, see the actual stake cap, and calculate your profit with Guarda ONT Staking.
What is Ontology Gas (ONG)?
It’s a special Ontology token used to pay Ontology crypto transactions fees. Unlike, for example, bitcoin or ethereum where transaction commission is paid in BTC and ETH respectively, Ontology is different. It has a special gas token designed just for that.
This token separation approach seems more convenient to use compared to the classic one. You don’t need to worry if you have enough coins in the wallet to make a certain transaction that you need. You don’t need to choose between a low commission with a long transaction time against a high commission with a short transaction time.
It’s all unified at Ontology. Every transaction requires a fixed gas fee of 0.05 ONG. The fee amount doesn’t change no matter how many ONT you want to transfer
Ontology vs Ontology Gas
ONG exchange rate is roughly 5% less than that of ONT. That means you can exchange 100 ONG to approximately 95 ONT, and you can exchange 100 ONT to about 105 ONG.
This is not a precise exchange rate. Please, be sure to check the exact Ontology coins rate before the exchange. And once again remember that any ONT transaction requires 0.05 ONG as a gas fee.
The almost equal ONT/ONG exchange rate is one more positive factor for staking and for your income.
So to say, here is one of the possible algorithms:
- You send or swap ONT in Guarda Wallet
- Wait until the end of the consensus round. It usually takes seven days
- Wait for your staking reward to be wired to your Guarda Wallet account. The reward is paid in ONG
- Convert your ONG to ONT
- Add newly gained ONT to your previously used staking funds After that is done, you can repeat the above instructions and gain more ONT as a result.
- Gain more ONG
- Gain more ONT
How to Mine Ontology Coin?
Unfortunately, there is no way to mine Ontology so far. And there will not be any way to do it in the future as well. This is because of the ONT Network and Blockchain settings.
The fact is that Ontology is based on its own specific consensus mechanism. Such a mechanism defines how blockchain confirms and verifies transactions. The consensus mechanism is probably the most important thing in blockchain and cryptocurrency development.
ONT has a consensus mechanism called VBFT. It is a mixture of Proof-of-Stake, Byzantine Fault Tolerant, and Verifiable Random Function mechanisms. The name of the mechanism is also a mixture of the listed above mechanisms. The full name is Verifiable Byzantine Fault Tolerant.
That all combined brings the coin necessary high transaction speed and low gas fee. But we all pay for it by the absence of mining options. You can only buy ONT or exchange it from other coins and tokens.
Ontology Coin Future (Roadmap)
The ontology team predicts a bright future for the cryptocurrency and the whole ecosystem as well. They want to evolve Ontology into five directions. ONT ID or Identity part, OScore or Credit part, ONTO or Wallet part, Wing or Lending part, and SAGA or Data part.
Here are some details for 2021 from the official Ontology Roadmap.
ONT ID (Identification):
- Integration of decentralized identity functions on more public blockchains. For now, Ethereum, Polkadot, and Binance Smart Chain are supported.
- Additional security measures and privacy control to users.
- Integration into additional DeFi projects.
- Develop new OScore use cases.
- Adding more dApps support on ONTO.
- Upgrade native integrations with DEXs and dApps within ONTO.
- New product pools to increase the number of assets Wing supports.
- Launch Wing on other blockchain platforms, including Ethereum.
- Increase the number of active users and the number of transactions.
- Find new decentralized data ecosystem platform partners. Partners are expected to be from various industries and countries.
- Look for more real-life ecosystem use cases.
All these plans seem to cause optimism. More projects - more options to use Ontology - more partners using the ecosystem - more transactions - less consensus round time - more staking profit.