Ontology (ONT) has a strange name for a blockchain. The word ontology refers to a branch of metaphysics dealing with human nature.
Ontology can also refer to a set of concepts and categories in a subject, or domain, that shows the relations between them, Google reports. I think the second definition explains the use of the term Ontology.
To explain, they envision Ontology as a better means of connecting the blockchain to Web3. In particular, they claim, Ontology’s Ethereum Virtual Machine (EVM) or Ontology Multi-Virtual Machine creates frictionless compatibility between Web3 apps and the Ethereum blockchain.
How Ontology Connects to Ethereum
An Ethereum Virtual Machine is a digital computer that runs an Ethereum blockchain. Users pay gas or fees to access the EVM and connect with Ethereum.
The Ontology Multi-Virtual Machine is a digital computer that connects Ethereum to Web3. A Multi-Virtual Machine adds a second layer (layer 2) to Ethereum to enable Web3 access. The Ontology Multi-Virtual Machine gives users access to the Ontology Web3 Network (OWN) infrastructure.
The OWN is a series of blockchain protocols and products Ontology builds for Web3 applications. Ontology contains three layers: an Underlying Layer, a Protocol Layer, and an Application Layer.
Ontology Underlying Layer
The Underlying Layer contains: A Layer 2 solution based on optimistic roll-ups, a cross-chain collaboration solution, multi-virtual machine support, and a Verifiable Byzantine Fault Tolerance (VBFT) Consensus Mechanism.
To explain, a VBFT is a consensus mechanism they base on a verifiable random functions (VRF). A VBFT combines proof-of-stake and Byzantine Fault Tolerance.
VBFT allows OWN to function as a consensus network. In Ontology’s network, each node handles transaction requests, block generation, blockchain maintenance, and consensus block distribution to synchronous node networks.
In particular, Ontology’s governance model creates parameters that VBFT follows. They claim this allows Ontology to offer fairness and randomness in its network construction.
The Ontology Protocol Layer
The Protocol Layer contains the ONT Decentralized Identity Framework, which comprises an ONT Login, an ONT TAG, Mercury, and OScore. There’s also the Orange Reputation Protocol and the POD Metadata Protocol.
They call OScore the first—and only blockchain scoring system. Oscore helps users access under collateralized loans based on reputation through the Wing Finance DeFi (decentralized finance) platform. Oscore can support defi functions such as borrowing, lending, and insurance.
The Application Layer is the Web3 Gateway which contains the ONTO Wallet.
A Dual Token Network with ONT and ONG
Ontology (ONT) and Ontology Gas (ONG) tokens power the Ontology network. Hence, Ontology is a dual token network.
The Ontology (ONT) token is the primary means of storage and value transfer. ONT tokens can delegate stakes to Trione nodes. Holding ONT tokens allows the node operators to make proposals and vote on matters of governance.
The Ontology Gas Token (ONG) allows users to pay fees to access the Ontology Multi-Virtual Machine. Users need machine access to process transactions in Ontology.
Plus, users can stake ONT for ONG Rewards. Users can store, swap, and transfer ONT in the ONTO Wallet. The Wallet provides support for ONG rewards.
Ontology bridges ONT tokens into the Ontology EVM by creating ORC-20 (Ontology Request for Comment) tokens. ORC-20 tokens are Ontology’s equivalent of Ethereum Request for Comment (ERC-20) token. Ontology bridges Ontology native and OEP-4 tokens into the Ontology EVM as ORC-20 tokens.
Additionally, Ontology wraps Ontology as Wrapped Ontology (WONT) an ORC-20 token synthetic asset pegged to ONT. To elaborate, WONT is a stablecoin that pays in ONT.
Ontology wraps Onthology Gas Tokens (ONG) as Wrapped ONG (WONG). WONG is an ORC-20 stablecoin that pays in ONG.
The Ontology Bridge
The Ontology Bridge connects Web3 to the Ontology EVM. In particular, the bridge makes OEP-4 (Ontology) tokens into ORC-20 tokens. Users can bridge ONT, ONTd, and Wing Tokens.
They claim the Bridge allows ONG to exist in both the Ontology account address and the Ethereum address. Theoretically, this allows Ongology (ONG) to operate on both Web3 and in the Ethereum Blockchain.
There were 581 total Ontology nodes on 8 April 2023. Those nodes included 15 consensus Nodes, 195 candidate Nodes, and 371 Synchronous Nodes. They claim 222.732 million ONT was staked on 8 April 2023. That comprised 25.179% of the Total ONT supply.
What Value does Ontology (ONT) offer?
Mr. Market has some interest in Ontology. For example, CoinMarketCap named Ontology (ONT) the ninth most trending cryptocurrency on 8 April 2023.
In contrast, Ontology was CoinMarketCap’s 152nd ranked cryptocurrency with a 25.71₵ Coin Price on 11 April 2023. CoinMarketCap also gave Ontology a $225.059 million Market Capitalization, a $257.137 million Fully Diluted Market Cap, and a $37.363 million 24-Hour Market Volume on 11 April 2023.
Impressively, Ontology had a $37.374 million Centralized Exchange (CEX) Volume, and a $14,181 Decentralized Exchange (DEX) Volume on 11 April 2023. They base those numbers on an 875.250 million ONT Circulating Supply and a one billion ONT Total Supply.
Ontology is an interesting cryptocurrency and protocol. However, I advise speculators to avoid Ontology (ONT) until we see how much money it can make from Wong (WONG) and wrapped tokens.
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