ONT plans to use chain network to build a trusted network, aiming to overcome weaknesses of established general platform projects
As for scalability improvement, based on successful experiences and forefront achievements of cryptography, ONT has created a consensus algorithm combining VRF (Verifiable Random Function), PoS (Proof of Stake) with DBFT (Delegated Byzantine Fault Tolerance). In the consensus progress, all nodes must hold a certain quantity of ONT tokens to authenticate own legitimacy at first. Then participant groups are formed randomly from PoS table by unpredictable, undecipherable nonces generated by VRF. Finally chosen representatives fulfill their functions by voting for the producer of block. The next nonce will use extracted volatile information from the newly generated block as seeds, also produced by VRF. With the addition of VRF, the wildly criticized DBFT algorithm in NEO has been profoundly improved. In contrast, ONT chooses voters more randomly to make the consensus process more decentralized and enhances system security.
Source: Official Source, TokenInsight
ONT shares the same goal to become adhesive of blockchain systems with ICX (ICON), DOT (Polkadot) and other general platform projects using similar application scenarios, attempting to break the barriers of information exchange between different blockchain projects. And as for consensus algorithm, all the three chose to improve PoS and BFT algorithms, of one cord. ICX uses LFT (Loopchain Fault Tolerance) as consensus algorithm. LFT is a custom-made version of BFT, which further improves BFT and Raft algorithms. LFT reduces communication traffic between nodes and accelerates consensus forming by optimizing communication procedure and using block data. Using PoS+BFT algorithms, DOT divides nodes in consensus process into 4 kinds of collaborative roles. ONT ICX and DOT have all claimed that their transmission speed can reach 1000 TPS (Transaction per Second). All the three limit the number of consensus-building nodes and uses voting or score system to reduce involved nodes and improve efficiency. By comparison, no permission is required for node joining and leaving in ONT and the addition of random function has made voting process closer to an even distribution. Hence, ONT has its advantages for decentralization and security. However, there is few successful cases of these kinds of algorithms. Both security and throughput still remain experimental or theoretical.
ONT has unique advantages when compared with popular EOS and ETH. Owing to its consensus, it has a higher level of decentralization and security. Under this premise, it turns in respectable performance and strongly practical system. According to data from ONT, comparison tests of EOS Dawn 4.0 and Ontology 0.8 have been carried out in same server configurations and Ontology 0.8 had a better performance in TPS (thousands VS. hundreds). When compared with performance of Ethereum, ONT has a greater advantage over throughput. Besides, its unique cross-chain design and detailed application scenarios put ONT in a strong position.
Source: Official Source
Application scenarios in ONT differ from those of other general platform projects. Most interaction-focused projects emphasize token circulation in order to connect all systems economically. But ONT lays stress on digital identities, credit systems and data exchange. ONT expects to simplify certification, identification and credit procedures via chain network, protocol framework and smart contract framework, thus users can establish their own digital identities on ONT and view ONT as a trusted platform. They can exchange data, trade and conduct credit reviews on trust. To achieve this goal, ONT has designed a large number of protocol frameworks and development components for the convenience of scenario use and development. Furthermore, ONT offers users many module choices for different consensuses and encryption algorithms in blockchain framework for various application scenarios.
ONT plans to add more features such as computing sharding, financial service and collaboration platform in the future. ONT has introduced a very important link known as trust anchors in its certification procedure, and these institutions are crucial to the construction of a trusted system. According to its road-map, ONT may establish a system similar to the multi signatures joint account of DOT in the next phase. On the occasion, ONT will play more financial roles.
Traditional economic model has been modified, well-run incentive mechanism has been set up
Source: Official Source
At present, liquidity of ONT token has reached 0.11 billion. Its maximum supply has even reached 1 billion. 15% is held by ONT core team and will be released in the next four years, of which 3.75% has already been tradable. The proportions of ecological construction partners and technical communities are 25% and 10%, of which 12% and 10% are tradable now. The share of NEO council occupies 10% (10% is tradable), while distribution proportion of cooperative institutions and business partners accounts for 28% (6% is tradable). Besides, ONT hasn’t conducted crowdfunding and distributed the remaining 0.12 billion token to early community participants, some are distributed during campaign and some are directly airdropped to NEO’s holders (2%).
Before its main net coming online, ONT uses NEO-based smart contract to save token account data. The top10 addresses hold more than 93.27% and it is clear that token allocation is excessively concentrated. Each of the top 7 addresses holds more than 5%, and their sum is 84.64%, whereas other addresses occupy less than 4%.
Source: Official Source, Neotracker
Similar to the mechanism design of NEO, ONT uses a double-token mechanism which binds ONT with ONG. ONG token will be distributed to ONT holders in proportion to their holding amount after the launch of main chain. Unlocked ONG token can be used for exchange of basic services in ONT ecology.
Regarding user incentive, ONT provides open smart contract technology for business incentive building. Users need ONG token for trading and are influenced by ONG token’s price fluctuations. As for Block producer incentive, the incentive curve reveals that although plenty of pledged ONT token can be involved in consensus, only with appropriate quantity of pledged ONT token can the maximum return be gained. Excessive pledged ONT token will bring down ONG yields, which creates a so-call multiple gaming mechanism for node owners. Such dynamic balance formed by incentive curve makes the whole node network fairer and more decentralized.
ONT has a similar governance mechanism with NEO and offline council takes charge of strategic and tactical decision making as well as daily execution. Moreover, retail ONT users can participate in node governance by entrusting or pledging to obtain allocation incentive.
Source: Official Source
The team has a profound technical background and various favorable partners
Recently, ONT team profile has been published on the official website. CEO and other chief technical leaders have a lot of technical experience on blockchain projects. According to personal profiles on LinkedIn, Li Jun (founder of ONT) and Da Hongfei (founder of NEO) co-founded Onchain, and Onchain is the initiator and core technical supporter for ONT. Furthermore, ONT and NEO have established strategic partnership. In a word, there is a strong correlation between the three parties.
Onchain was founded in 2014 and its main business is DNA (distributed network architecture) system development for Chinese enterprises and government. Starting in 2014, NEO aims to build a distributed network serving for intelligent economy by means of smart contract creation and digital assets management. On May 14th, 2018, ONT and NEO signed a memorandum of technical and strategic collaboration, which stipulated they together provide underlying protocol and infrastructure that was identity included, compliant and able to be regulated for global developers and various scenarios. It is easy to see technical relevance between ONT, NEO and DNA.
Source: Official Source
Among its cooperative partners, there are well-known venture capital firms (such as Sequoia Capital, Danhua Capital and Matrix Partners) and blockchain technology-related companies (such as Onchain, NEO and NAGA Group). Its ecological construction and development will benefit from the participation of these partners. ONT has set up its own fund in February, 2018. Project leader and CSO serve as directors and take charge of overall planning and project governance. In accordance with legal requirements of the region where it was founded, ONT fund has entrusted third party with independent audit. Meanwhile, ONT team has built a long-term cooperative relationship with many international law firms to meet regulatory requirements for different jurisdictions, including Dentons, Hogan Lovells and so on.
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