Investors in NEO have begun taking part in the second stage of the large-scale distribution of ONT tokens which are estimated at more than $42 million. Users of the Chinese platform that have been keeping the popular NEO cryptocurrency since March 1 will receive a total of 10 million tokens from the Ontology project at a ratio of 1 NEO to 0.1 ONT. The airdrop is carried out as a reward for "appropriate cooperation and support from the NEO community.”
This was announced back in February 2018, when NEO Global Development (NGD) announced the first airdrop from Ontology:
"To support a joint ecosystem, Ontology project is handing over an amount of ONT tokens to be managed by NEO Council. It, in turn, announces that the transfer of 20 million ONT tokens are part of a donation from the Ontology team to the NEO Council. Delivery of the first ONT tokens will be completed within a few weeks after March 1. The allocated funds (0.1 ONT to NEO) will be transferred on the Ontology MainNet channel. It is expected that the MainNet will be released in the second quarter of 2018. A certain date will depend on how the Ontology test network performs," the report said.
Then the whole process went according to plan without any failures. This interconnection of projects is conditioned by a single ecosystem, because NEO was originally launched by entrepreneur Da Hongfei in 2014 through his organization Onchain, which was the parent company of the first airdrop on March 8.
That is, the new platform was created by the same development team that designed the NEO blockchain system. Initially, the community reacted ambiguously to the emergence of Ontology and suggested that ONT would become a competitor to NEO. But these fears were not confirmed, as the newer project of Hongfei has a different nature and is intended specifically for large business.
"ONT tokens were created for the functioning of Ontology's new blockchain platform as a way of communication between various blockchains and databases. The platform allows developers to create decentralized applications," says the project’s website.
Ontology Blockchain Structure
According to the developers, Ontology aims to unite the blockchain with the real economy, and the whole structure is built on trust management and digital user identification. Macro businesses have been selected as the target users of the service, which, on the basis of Ontology, can create individual projects. One can distinguish some of the features and highlights of Ontology 1.0: SmartX is a smart contract tool that is used to compile, deploy, and call smart contracts, and node security is achieved through partnerships with well-known security companies, such as NCC Group, Baimaohui, and SlowMist.
The ONT network consists of three levels, each of which has the ability to design their own applications. The levels depend on the complexity of the design architecture. At the first stage, simple blockchains are created, which are combined with other blockchains. At the second level, thanks to ready-made protocols, users can develop their own decentralized applications (dApps). At the third and top level of the network, the most complex programs from the technical point of view are created.
The project uses the dBFT (Delegated Byzantine Fault Tolerance) consensus algorithm, the modified standard of the PoS protocol (Proof of Stake), where the actions for the network are answered by delegated users, which are selected by a general vote. The advantage of Ontology is that the project can provide its customers with the algorithm that is most beneficial to companies.
Popularity of ONT
The ONT token immediately gained the confidence of investors even without an ICO, since, as it was said above, the distribution of coins is carried out through users of NEO. The total supply is limited to one billion, and at the moment 151,292,175 ONT have been distributed. In April 2018, after the appearance on the Bitfinex Exchange, the token rate was $1.40, and after listing on Binance, ONT rose to $2. In a few weeks, the rate increased fourfold, and at the end of May, the project's capitalization grew to $4 billion. The peak of value was noted at $10, but after June’s negative events, which led to a fall in the rate of all major currencies, ONT was sold for $8 or less.
The interest in this currency is probably due to the fact that the Onchain parent company has proved itself quite well in the industry and cooperates with such giants as Microsoft and Alibaba. Experienced developers are responsible for the project, but there are some nuances that raise questions about the safety and security of data privacy because Ontology is a project with private funding. In addition, critics doubt the revolutionary nature of the idea and its perception in an entrepreneurial environment, where businessmen are accustomed to working with long-established technologies.