ontology

What is Ontology (ONT) Coin? A Guide for Beginners

By Guarda Wallet | Guarda Wallet Blog | 1 Dec 2023


What is Ontology Coin (ONT)?

Ontology is a revolutionary technology in the sense that it allows businesses with no prior knowledge of distributed networks to use blockchain. Currently, businesses have no way to integrate blockchain into their infrastructure without costly knowledge of it.

While trusted networks face a variety of challenges, such as poor privacy protection, untapped data value, monopolized information management, and inefficient identity authentication, all present opportunities for blockchain technology. This is where Ontology tries to solve the problem with its strong trust ecosystem.

A deeper dive into Ontology

Ontology is a project designed to bring trust, privacy, and security to Web3 through decentralized identity and data solutions. It is building the infrastructure to provide trusted access to Web3, allowing individuals and enterprises to rest assured through regulatory compliant digital identity solutions.

The Ontology blockchain is a high-speed, low-cost public blockchain. It is designed to bring decentralized identity and data solutions to Web3, with the goal of increasing privacy, transparency, and trust. To achieve this, users and enterprises are provided with the flexibility to build blockchain-based solutions that suit their needs, while also ensuring regulatory compliance. Through Ontology’s Ethereum Virtual Machine (EVM), Ontology ensures frictionless compatibility with Ethereum, the first step in creating the Ontology Multi-Virtual Machine and further interoperability for the chain.

Ontology was founded by Li Jun on November 27th, 2017, with its MainNet launched on June 30th, 2018.

Ontology dual-token model

Ontology is a project that uses a dual token model: ONT and ONG. Both are important and fulfill a function on the blockchain. ONT is used as the staking tool and the time, cost of staking and operating costs of the nodes are considered to be input. ONG is used as a value-anchoring tool for on-chain applications and is used in the transactions on the chain.

The main function of ONG is to pay the Ontology platform fees. ONT or ONG transactions will require payment of 0.05 ONG. Users can earn ONG rewards via ONT staking either as a node or staker. Visit node.ont.io for more instructions on how to run an Ontology node or have access to our node & staking yield calculator. You can obtain both ONT and ONG on Guarda Wallet by swapping or purchasing them with a SEPA transfer. ONT staking rewards are Web3 through providing decentralized identity (DID) and data solutions. From the very inception of the project, the aim has been to build the infrastructure required for users to interact with this new generation of decentralized applications.

With a focus on DID and data, Ontology brings secure and self-sovereign control over users’ digital existence. With the launch of ONT.ID, Ontology optimized its decentralized identity products, like ONT TAG, ONT Login, and OScore to be more applicable to all blockchains. Over 1.5 million users now manage their digital identity using ONT ID, with control over how, when, and with whom their data is shared.

What makes Ontology special?

By taking a multi-VM approach, Ontology maximizes interoperability and allows more developers to create in the development languages they are familiar with. This allows dApps to be integrated into multiple platforms, which boosts long-term growth for cross-chain dApps. The result of which is exposure to a large user base and the benefits offered by alternative chains.

Ontology also offers a variety of real-life use cases and allows businesses to build their own applications on top of the Ontology blockchain. It provides additional features like smart contracts, cryptographic identity proofs (ONT ID), tokenized data (DDXF) that can seamlessly be transferred between different blockchains issued in ONG tokens.

You can quickly embark on Ontology staking on the web and desktop Guarda Wallet. Starting with only 1 ONT, you are able to receive frequent rewards in ONG with a whopping 35 to 40% APY. Add to an existing stake or unstake anytime.

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.

Ontology Staking

Staking involves depositing coins for storage and earning income. As a rule, the mechanism is as follows: coins are sent to the desired address, where they are blocked for a certain period of time by a smart contract. In the case of the Ontology network, the ONT coin is used for this purpose, which in addition to the possibility of staking gives the right to control. Rewards are accrued automatically after each round in Ontology Gas (ONG) tokens — the payment token of the Ontology network. This token is required, for example, when you are transferring ONT from account to account, as ONG is deducted as a commission.

Nodes on the network offer remuneration for locking ONT with them, and thus attract token holders. By staking their ONT on a node, holders delegate their votes in this way, which is important for the nodes to participate in the consensus to process a new block in the blockchain. Each block takes between 1 and 30 seconds to process, and rounds can last anywhere from 16 hours to 20 days, after which a reward in ONG is accrued.

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

 

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Guarda is a custody-free multi-platform cryptocurrency wallet with a user-friendly interface designed to store, buy, stake, and exchange crypto assets. https://guarda.com


Guarda Wallet Blog
Guarda Wallet Blog

Guarda is a custody-free multi-platform cryptocurrency wallet with a user-friendly interface designed to store, buy, stake, and exchange crypto assets. https://guarda.com

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