Ontology Wallet

How does Ontology work?

Ontology is a specific network of blockchains that was built to make it easier for enterprise users to migrate proprietary systems and applications to distributed ledger technology with minimal downtime and system disruption. It uses so-called sidechain technology, where the main blockchain is public and the other chains are linked together as a private space. Such a system offers enterprises the advantages of blockchain technology, without the need for their own development team.

Ontology is the rival of the Ethereum network, a smart contract platform used to host decentralized applications (dApps). It was developed to resolve the problems of enterprise usage faced with the Ethereum network. Ethereum is open-source, but many businesses aren’t interested in it because they wanted to keep their data proprietary and secure. In addition, Ontology plays an additional role to act as a bridge between NEO and legacy systems and is unaffected by the fact that its cryptocurrency a consumer-facing transactional currency. It focuses on the needs of its corporate user base.

Consensus algorithm

Ontology has introduced a new type of consensus mechanism consisting of a combination of the BFT (Byzantine Fault Tolerance) consensus protocol and VRF (Verifiable Random Functions). It was known the Ontorand Consensus Engine (OCE) on the platform or the VBFT consensus mechanism. This consensus mitigates against network forks, has a low hash rate, and is stable, secure, and reliable. Ontology implements the NeoVM virtual machine, written in Go, which is used for executing smart contracts as well as for intelligent control logic of the application layer framework. The NeoVM is highly scalable and uses a “deterministic call tree” technology that enables dynamic sharding.

Ontology (ONT) token

There is a total of 1 billion ONT tokens, but the circulating supply is just over half of that amount. Just 12% of all ONT tokens were distributed to the community via a series of airdrops to NEO holders, newsletter subscribers, and others. These tokens were released as NEP-5 tokens on the NEO blockchain but were later swapped for native tokens after the launch of the Ontology mainnet on June 30, 2018. ONG token is created and paid out to nodes to protect the network. A total of 1 billion ONG will be generated over a period of 22 years. Users can stake ONT with the node owners to receive a portion of the ONG payments.

Use cases

Ontology can really support the business world. For example, in enterprise business systems, banks don’t handle many of the functions of loan servicing. Alternatively, they outsource these functions to third parties who specialize in the provision of loans. Such a scheme is insecure and non-privacy. A big company like Capital One isn’t going to allow an outside provider complete access to their systems. This would be a breach of security that places private and confidential information at risk. Capital One has data stored in a range of proprietary systems and software platforms. This helps them to isolate the data and provide access only to those who need it to perform a bank task or service. Capital One staff access all data through an internal software interface, third-party vendors may also access the same data, but in a more restricted manner via a web portal designed exclusively for third-party access. All of these systems are collecting their data from the Capital One single database, and they are synced and updated in real-time. For so many systems operating together, it is too difficult to switch to a new system. Not only banks, but also governments, insurance companies, health care facilities, and other organizations require the privacy of their data. In certain cases, it impossible for companies to give third-parties access to consumer data and this has created issues for Ethereum and NEO, which have been built public, open-source networks, and enterprises are unable to use them because they may lose their data. Ontology makes a network of blockchains that is similar to the conventional systems used in banks and other organizations. It allows the enterprise to retain control over access to their data. The data is kept separate, and the entity determines who has access to the data, and which data should be shared with the NEO ledger. Ontology keeps the enterprise data tightly controlled, and the business has the ability to do what it wants with its own data, either to keep it internal or allow selective access to third-parties or even to make it completely public.