Large corporations are turning to cryptocurrencies and blockchain technology in droves to improve their services and general infrastructure. One of the leading protocols that many businesses are starting to take advantage of is Ontology. It is an open-source blockchain providing decentralized identity and distributed data exchange services.
Daimler AG, one of the most successful automotive companies and owner of Mercedes-Benz, recently partnered with Ontology to modernize its services and financing. The network is so flexible and foundational that it has at least 80 use cases, many of which haven’t even been fully explored yet. Companies looking to revolutionize their decentralized identity management and distributed data exchange services should probably consider a partnership Ontology.
What is Ontology?
The Ontology blockchain uses a dual-token system with 2 utility tokens, ONT and ONG. It uses an innovative consensus mechanism called Verifiable Byzantine Fault Tolerance (VBFT) to verify all events on the network. Anyone can stake ONT on the network to help secure it and earn passive ONG. ONG is the Ontology gas token used for paying transaction fees. ONT is also the governance token of the blockchain, allowing holders to make important decisions to determine Ontology’s future.
The 2 main components of Ontology are its decentralized identity framework, dubbed ONT ID, and distributed data exchange services. ONT ID facilitates identification and communications among entities, a broad term it uses to describe individuals, companies, objects and assets. Unlike centralized identification services, ONT ID lets its users retain full control over the information on the network associated with them.
ONT ID runs off of a verifiable claim mechanism, where a network participant can validate and claim access rights to data. These verifiable claims use the amazing new cryptographic technology called zero-knowledge proofs. In essence, a zero-knowledge proof is a mathematical way to prove to another entity that you know something without revealing what that something is. These proofs allow Ontology to verify ownership, distribution and access to personal data without revealing it unnecessarily.
The other main use case for Ontology is its Distributed Data Exchange Framework (DDXF). DDXF is the tamper-proof and intelligent framework used to distribute, manage and trace data across multiple blockchains. It turns bunches of data into tokens on the blockchain. Users can send these data tokens to only those they need to and obscure them from everyone else. Both ONT ID and DDXF are incredibly useful frameworks with a massive range of applications. As more corporations make use of blockchain technology, Ontology could be crucial in facilitating the services they need.
Brief History of Ontology
Ontology first launched on the NEO blockchain as a NEO-5 token through airdrops and similar methods of distributing the token to the early community. Ontology was officially founded in November 2017 by Jun Li and eventually launched its own blockchain in June 2018. Li is a brilliant blockchain solutions architect with a bachelor’s degree in computer science, a Master of Science degree in communication engineering and a Master of Business Administration degree. He has been a vital asset for the Ontology team in the past and likely will continue to be in the future.
Ontology has scored dozens of partnerships with a wide range of corporations, cryptocurrency protocols and more. Chainlink, the largest oracle protocol that inputs information from data providers to any blockchain, partnered with Ontology in 2019 to expand the efficiency and functionality of external blockchains. In 2020, Ontology partnered with Daimler AG and has continued to help other companies expand into blockchain technology.
ONT has not performed as well as the important partnerships might suggest. Its price rose significantly during the last bull market but failed to reach its all-time high of $10 in 2018. At the time of writing, it is hovering around $0.85 and it will likely follow the top cryptocurrencies in the market to some degree in the future.
How to Buy Ontology
Looking for a quick and easy way to purchase Ontology? You’re in luck! Just follow the steps below.
- Open an online account.
Ontology isn’t an incredibly large token, but it’s available for trading on a few different trading platforms. Some of the best are Crypto.com, Binance.us and Binance. After you set up a basic account with one of these platforms you will need to verify your identity. This generally requires you to provide your address, Social Security number and a picture of your driver’s license or other valid ID. Once your account is verified, you will be able to fund your account with fiat currency or a supported cryptocurrency.
- Buy a wallet (optional).
All 3 of the cryptocurrency exchanges recommended above are extremely secure, but no exchange can be completely invulnerable to malicious attacks. Exchange hacks have lost users many millions of dollars in crypto over the years. Keeping your cryptos on the trading platform you use is never the safest option. Many crypto investors keep their funds in 2 different types of personal wallets: software and hardware wallets.
Software wallets are free and usually the best option for using decentralized finance (DeFi) platforms, but they store information online and are less secure than the alternative. Hardware wallets keep all your information completely offline, making it nearly impossible for hackers to steal your funds. The best brands are also hardened against physical attacks to make them the most secure place to secure your cryptos. - Make your purchase.
Now that your exchange account is verified you need to fund the account to start trading Ontology. All 3 of the recommended exchanges allow users to deposit fiat currencies using an ACH and wire deposits. ACH deposits are likely the most convenient because they are instant and let you start trading almost immediately. Once your account is funded, just search for the trading pair with Ontology and the asset you want to purchase it with and make your purchase.
Crypto Wallets That Support Ontology
- ERC-20 tokens
Best Hardware Wallet: Ledger
Ledger is a fantastic hardware wallet brand with 2 incredibly secure devices: the Ledger Nano S and Ledger Nano X. Both devices support Ontology, Bitcoin, Ethereum, all ERC-20 tokens and more. You will need to follow Ledger’s guide on how to install the ONT application on your Ledger to manage ONT tokens. The Nano S is the simpler model with all the security you need to keep your portfolio safe. The Nano X adds a larger screen and Bluetooth functionality for easy on-the-go use.
The wallets have the same certified secure chip that randomly generates and encrypts your private keys. Using the private key is the only thing you need to access your wallet and not even Ledger can see it. If you are worried about exchange or software wallet hacks, Ledger is one of the best brands to give you peace of mind.
Best Software Wallet: ONTO Wallet
Many of the best software wallets like Coinbase Wallet and MetaMask only support the top few 20 tokens along with all ERC-20 tokens (and sometimes all BEP-20 tokens). Ontology is on its own blockchain so the options for wallets are a bit sparse. One of the most popular and powerful Ontology wallets is ONTO Wallet and it’s available as an app on iOS and Android devices. It has far more features and supports a longer list of cryptos than most other wallets, offering a wide range of blockchains including Ethereum, Ontology, Binance Smart Chain, Bitcoin and more. You can even manage your ONT ID in the application.
Bonus:
The future success of Ontology will likely depend on further large partnerships with corporations, integration on more public blockchains and the success of its plans to implement additional security and privacy for users.
Trade, Sell or Convert your Ontology
All altcoins, including Ontology, can be extremely volatile. To prepare for possible immense price swings you should know how to trade or sell your coins. Luckily, the process is extremely simple. First, navigate to the exchange you purchased it on or any other supported exchange. Then find the trading pair with ONT and the asset you want to convert to and finish the transaction. You might want to close your position for a variety of reasons. For example, if you find another investment that you think will be more profitable you may want to convert your ONT to that asset. You may need to use more than 1 exchange to do this if the other asset isn’t available on Crypto.com, Binance, Binance.us or another exchange with ONT trading.
Current Crypto Prices
The cryptocurrency market is continuing its rally after the May crash. Ethereum is performing especially well after the long-awaited network upgrade, EIP-1559. The token was trading under $1,750 only a couple of weeks ago before it shot up over 60% to $2,810 at the time of writing.
Bitcoin has seen a decent price increase as well in the same period, moving from below $30,000 to about $41,000. Investors are certainly happy to see these price movements, however, the crypto community is still debating whether the market will continue to rise. The stunning 2020-2021 bull market seemed to be over when both Ethereum and Bitcoin nosedived below 50% of their all-time high values. This rally could prove to be a continuation of the bull market or the last pump before the bear market sets in. We likely won’t be sure either way until we see even larger price changes.
Is Ontology a Good Investment?
Ontology could be a fantastic investment, but it is just as risky as many other altcoins. It is already partnered with many large companies and has successfully delivered flexible blockchain integration to them in the past. If it steadily partners with more and more companies and continues to provide vital blockchain services, the coin will likely perform well in the long term.
It is also possible that new protocols that offer the same or better blockchain integration will push Ontology to the sidelines. Remember that altcoins almost always follow Bitcoin or Ethereum to some degree, so keep an eye on those prices.
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About Henry Stater
Henry is an expert in all things crypto. He stays up to date with all the latest coins, platforms and technologies in the field. He has particular expertise in the burgeoning decentralized finance ecosystem and loves trying out all the new platforms. He also always follows major events in other financial markets and geopolitics as a whole, especially when an event’s effects ripple through the crypto market.