What is Ontology?
Ontology is a distributed trust network and is encouraging businesses to join its ecosystem. Ontology has joined the Decentralized Identity Foundation, whose objective is to facilitate online identities. Ontology has strong ties with NEO. Ontology can support multiple block chains. The application layer of the protocol is designed as a system of pluggable modules. Ontology has ranked fourth in Chinas CCID rank
Ontology is following several industry standard protocols, it issuing W3C for identity authentication, authorization, and data exchange and RSA, and ECC for its cryptography. Ontology has an SDK (Software development kits) and APIs that facilitate the development of dApps (Decentralised apps). The ontology network is creating trust by having the users verify their identity. This is a similar strategy to Worbli.
Ontology uses a VBFT consensus algo , in practice, this is similar to a dPoS (Delegated Proof of Stake) system. Same as EOS and ARK). The blocks are processed by nodes, token-holders vote for these nodes, and in return, the nodes share the block reward with them. EOS does not allow vote-buying, while Ontology allows revenue sharing with the voters. In Ontology, the passive income is going straight to the voters, in EOS the node income is supposed to be used to the benefit of the network at the discretion of the nodes.
How to generate a passive income with Ontology?
Passive income is generated by Satking and to stake you need
- 500 ONT and 1 ONG
- The Ontology wallet.
- Staking will generate ONG (Ontology Gas). ONG is the passive income generate, ONG is a token used to power the Ontology network this is similar to Ethereum or GAS (for NEO)
- While staking your computer does not need to be online, so the process is entirely passive.
To stake Ontology follow these steps
- Open OWallet
- Choose a node by going to “Node Stake” and “Stake Authorization.”
- Connect your wallet and “Submit new stake authorization.”
- Choose the number of stakes you want to stake
- To make sure this worked double check that In authorization you can see your staked tokens.
See also: A list of active and candidate nodes
The sources of Ontology Passive Income are:
- ONG Creation
- ONG transaction and Storage Fees that are paid for the network usage
- For the first three years Ontology Foundation Bonus
The Ontology Foundation Bonus is a payment of 10 million ONG distributed to all nodes yearly for the first three years. To be eligible the ONT stake needs to be staked for an entire month.
The Passive income ROI of Ontology will depend on several factors
- The more ONT stakers there are the lower the share of the ONT foundation bonus per staker.
- The price ratio between ONT and ONG
- The node selected to stake on. Each node will get an equal share of the 10 million ONG bonus. The more stakers on a particular node the smaller is their share. (It seems that Dubhe node has a lot of stakers)
ONT Staking lifecycle
The staking takes places in a series of rounds, once staked tokens are automatically staked in the next round. If staking is cancelled, the tokens will be available again at the end of the current round.
Each round lasts 120,000 Ontology Blocks; the block time varies from 1 second to 30 seconds, this means that the fastest round can be in 33 hours and the slowest in 42 days.
The site http://www.passivestaking.com/ gives you an idea of how many blocks are left
The bulk of this reward is from the Ontology foundation bonus. In Theory, the two other sources of income should pick up the slack as the foundation bonus decreases after three years.
Long-Term Ontology passive income prospects
One of the key variables of the growth of the network is the cost to use it. The more expensive ONG becomes the more expensive ONT becomes. The prices of these two tokens will determine the cost to use the network, the more expensive it is less usage there will be. The less usage means the fewer chances that Ontology will win the raise for being a platform for dApps.
It comes down to adoption and how fast this is taking place. You can monitor the number of apps on the ontology network, several collaboration announcements have also been announced. This can be compared with the number and quality of other dApps on competing networks such as EOS andEthereum
Other systems similar to Ontology which can generate a Crypto Passive Income
- NEO – Generate GAS by holding in the wallet
- VeChain – Generate vThor by holding in the wallet and a complex system of masternodes
- Walton Chain
- Ark –Ark Staking
- Revenue Generating Tokens
Ontology competitors for building a Trust network
Worbli – An EOS like blockchain, where are users are incentivised to do KYC
ByteBall – Is a DAG (Rooted Directed Acyclic Graph) type blockchain, whose users are also incentivised to do KYC.
To learn more about Ontology check: