As the first major cryptocurrency to gain the tacit approval of the Chinese government, NEO (NEO) spent much of early 2018 as cryptocurrency’s golden child. Offshoot blockchain Ontology (ONT) is the brainchild of many of the same developers and was one of the highest profile NEP-5 tokens – the equivalent of ERC20 for the Ethereum (ETH) blockchain. Airdropped to NEO holders in March of 2018, Ontology is a blockchain-augmentation service.
Rather than rebuild processes from the ground up, Ontology offers businesses a means to enhance their current operations with blockchain technology. While many cryptocurrency projects seek to completely replace their legacy counterparts, Ontology is offered as a service – similar to how Microsoft Office is ubiquitous in the modern work environment. They offer a means to secure data and quickly allow partial or full access as necessary.
The Triones Consensus Membership System
The Ontology development team recently explained how their internal governance system will operate. Dubbed the ‘Triones Consensus Membership System’, enterprise users will have the ability to run either a candidate or a consensus node – with the more exclusive consensus nodes receiving proportionally larger rewards. As Ontology does not subscribe to the average crypto-mindset of decentralized governance, this allows a greater degree of control over who is chosen to validate transactions.
To be considered for a candidate node slot, the user or group must adhere to certain requirements. First, they must hold a stake of at least 100,000 ONT. This ensures their commitment to the project and works as a form of collateral to prevent malicious actors. Understandably, Ontology also requires candidates to have the proper hardware and software set-ups to run their system. Finally, all candidates must have their identification verified through the ONT ID system.
The NEP-5 Standard and Cryptocurrency in China
Consistently touted as ‘China’s Ethereum’, NEO does serve a similar function to ETH – but with an entirely different rule set. The foremost difference lay in intentional centralization. China’s government is hesitant to fully engage with blockchain technology due to the level of autonomous anonymity involved. Where many countries are adopting a ‘hands-off’ approach to the technology, China is insistent that they have a degree of control to prevent the rampant fraud that is currently a hallmark of the industry.
As a NEP-5 token, Ontology was built using NEO’s standards and they are considered a ‘strategic technology partner.’ While they have since migrated to their own blockchain, they are still closely linked to their parent blockchain in both technology and ideology. Now that they have established the Ontology main net, their second token is coming into play – ONG. Where ONT is used for governance and staking, ONG is the on-chain services currency that allows businesses to pay for Ontology based products.
Article By: Adam Stone