A Deep Dive into the Ontology Network
Ontology Network is a relatively new public blockchain created in 2017 by a Chinese company called OnChain. The Ontology Network is designed to help companies with little or no knowledge of cryptocurrencies to integrate blockchain into their business. It allows users to customize public blockchains for different types of applications. The approach helps businesses to make the most out of blockchain technology.
For supporting decentralized applications, Onology platforms are seen as direct competition to Ethereum blockchain. The Ontology Network features two coins; the Ontology coin called ONT and the Ontology Gas token known as ONG. Ontology Gas token was released alongside the Ontology MainNet in 2018. The Ontology Gas token serves as a form of compensation for users that contributes to the platform.
Ontology platform is designed to allow companies to install blockchain technology without altering their internal systems. The goal of the founders is to simplify the process of integrating blockchain technologies. They also hope to make the use of blockchain possible for everyone.
Since it was the same parent company that founded both the Ontology Network and NEO blockchain, it was smart to connect the two. They leveraged the NEO community to help boost the popularity of the Ontology platform.
What is the main coin on the Ontology Platform?
We cited earlier that there are two distinct coins available on the Ontology Network. However, the main coin is the Ontology Token (ONT); and it officially went on sale in March 2018. There is a belief in the blockchain space that ONT was invented for private needs.
Meanwhile, after Ontology's MainNet launch, a new type of coin was introduced to the network. It was the Ontology Gas token (ONG), unique to the Ontology blockchain. The purpose of creating the ONG coin was to use it as a reward for people that contributed to the platform. Users can earn transaction fees in the form of ONG. It encourages users to remain active within the Ontology network.
How does the Ontology Platform function?
The ontology platform's major reason is gaining wide attention because it allows businesses to use private and public blockchains. Since it is not a single blockchain, the Ontology platform will enable users to control how they share data using blockchain. This makes ONT so attractive because it permits separate chains and also has multiple purposes.
Ontology network employs a unique consensus mechanism known as VBFT. The VBFT consensus mechanism combines three different consensus models. These models include the Proof-of-Stake consensus (PoS), the Byzantine Fault Tolerant (BFT), and the Verifiable Random Function (VRF). The developers of the Ontology Network claim that it will able to execute thousands of transactions per second. Their reason is that the VBFT consensus mechanism allows cheaper and faster transactions.
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The Use Cases of the Ontology Network
There are lots of use cases of the Ontology platform. So it can be applied in the automotive industry, serve as a data marketplace, digital finance, and data attestation. It can also be used to support decentralized exchanges. ONT ID serves as a decentralized identity framework that helps users manage their own data. It also permits blockchain-based authentification offered by global verifies. ONT ID is the key product of ONTology and has great potential for an individual’s identity management. There is also an ONTO wallet that helps to manage users' digital identities, data, and assets.
Let us consider some of the top decentralized exchanges built on the Ontology Network.
Top Decentralized Exchanges supported by the Ontology Platform.
The rise in decentralized finance (DeFi) projects has taken up most of the transaction capacity of the Ethereum network. This has led to much traffic and costly gas fees on the Ethereum blockchain; thus making it hard for users to transact on it. The congestion has had a negative impact on the broader DeFi space and hindering its adoption. Some DeFi platforms have tapped on to the Ontology network to get around this concern. Below are some of the decentralized platforms built on the Ontology network:
Chocoswap is one of the top cross-chain decentralized exchange that is supported by the Ontology platform. It is the first cross-chain decentralized exchange that is built on Ontology. The team recently announced a strategic cooperation with ONTO, Ontology's self-sovereign wallet. Through this strategic partnership, users can gain access to Chocoswap through their mobile devices. The partnership also allows both companies to offer comprehensive asset management to their customers. Also, users of both Chocoswap and Ontology now have access to cross-chain swap services. Such accessibility reduces the threshold of user participation.
Shawn You, the co-founder of Chocoswap, revealed that ONTO's large user base would serve as the foundation of Chocoswap's further development. Shawn also said that users should expect to enjoy safer and more user-friendly decentralized exchange services. Chocoswap indicated that it would share its profits with ecosystem members. They hope to sustain such a feat by not only buying back Choco from the secondary market. Chocoswap will also share dividends with all Choco holders.
Chocoswap runs on the Ontology Network to provide better-decentralized exchange services to users. Users enjoy lower fees, better user experience, and cross-chain asset management. One of the key features of the Chocoswap partnership with the Ontology platform is the fact that ONTO will help aggregate the decentralized finance mining feature of Chocoswap.
2. Oin Finance
Oin Finance is another one of the thriving decentralized exchanges supported on the Ontology Network. It is the perfect gateway to having a greater decentralized finance ecosystem. Oin Finance is specifically a DeFi company that develops a liquidity lending platform. It is built on the Ontology blockchain with cross-chain functionality.
Oin Finance aims to become the first DeFi platform to offer liquidity mining and loans on the Ontology platform. The ecosystem of OIN Finance functions through its native applications like OINSwap, OINLend, OINWallet, and USDO stable coin. Once OIN Finance deploys its bridge technology, the applications can start working cross-chain. Like other Defi platforms, OIN Finance also offers yield farming opportunities through its services like OINLend. With Finland, users can borrow assets to earn from interest fees or to leverage their funds.
The Ontology network has a variety of use cases and can be applied in different sectors and fields. Decentralized exchanges have been gaining momentum as they provide efficient services to users. Leveraging the Ontology platform to provide quality service to users further is a great move. There is no doubt about the future applications of Ontology; it is currently making waves already.
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