TokenGazer released ONT Rating: 4.2, Neutral
Ontology has high-ranking code commits on Github. [Bullish]
Development is in accordance with the roadmap. [Bullish]
Ontology has close connections with NEO, and the timely sharing of resources and technology can contribute to Ontology’s R&D and promotion.[Bullish]
Difinity is one of Ontology’s competitors with regard to its VBFT consensus mechanism.[Bearish]
Ontology has no focus in development or an orientation. [Bearish]
The number of Ontology’s followers is ranked high.[Bullish]
Most of Ontology’s followers are domestic investors. The project is not widely known abroad. [Bearish]
ONT allocation is reasonable. [Bullish]
The core team set a long lock-up period, which is conducive to maintaining investors’ confidence. [Bullish]
Ontology is user-friendly as developers can use several languages to create smart contracts. [Bullish]
Ontology’s on-chain transaction volume is low. [Bearish]
There are quite a few Dapps on the Ontology mainnet but active users are few. [Bearish]
Ontology supports identity document authentication in many countries. [Bullish]
ONT is mostly listed on domestic exchanges and is not widely known overseas. [Bearish]
Recently ONT price and trading volume has increased with an upward potential. [Bullish]
ONT's price is generally higher than the overall cryptocurrency market price after being listed on exchanges. [Bullish]
1 Technology Assessment
Ontology is a distributed trust collaboration platform and public blockchain project. It can be regarded as the Internet of blockchains to some extent, where indentity verification plays a very important part. There are many application modules in the application framework of Ontology such as API, SDK and so on. Developers with different technical backgrounds can develop DApps on Ontology platform.
According to Ontology’s official documentation on Github, Ontology 1.0 can achieve 5000 + TPS, and Ontology 2.0 can achieve 8000-10000 TPS. Ontology features various technologies and has a wide range of applicable scenarios, but there is not a shared focus in its several official documents. This project does not have a clear orientation. For example, the orientation of ETH is world computer, EOS is performance, Nervos is layer 2, and ZEC is privacy protection. While Ontology seems to be all-encompassing and has no focus of its own.
Ontology introduces the VBFT consensus algorithm, which combines PoS, VRF (Verifiable Random Function), and BFT. In the VBFT algorithm, based on VRF, consensus candidate nodes are selected in the consensus network, block verification nodes are set, confirmation nodes are set, and then consensus is completed by the selected node set. The VRF value of each round of blocks in the current VBFT algorithm is determined by the previous round of consensus blocks. The specific algorithm extracts volatile information from the previous block, calculates the hash, and generates a 1024-bit hash value. This hash value will be taken as the VRF value of the next block. Due to the randomness introduced by VRF, the candidate proposal nodes/verification nodes/confirmation nodes of each round of block are different and difficult to predict, which greatly improves the anti-aggressiveness of the consensus algorithm. Ontology currently has 47 candidate nodes. The block-creation speed is only limited to internet speed, usually resulting in confirmations within 10 seconds
Ontology and its distributed ledger technology use a decoupled architecture (which is the default for the Ontology Ledger) that can support NEO, Ethereum, and other blockchains as the underlying layer. At the ledger level, we creatively propose a shared data contract model that decouples data storage and business logic, and implements different business logic with the use of smart contracts to improve the scalability and flexibility of the architecture on the whole.
Smart contracts on Ontology platform are stored in isolated zones and are independent of each other. Smart contract implementation is sequential, if a contract needs to invoke another contract during implementation, it has to obtain the source code according to the corresponding contract hash. When the contract implementation is completed, the result will be recorded on the ledger.
Data storage of the Ontology chain is conducted via data decoupling. The transactions, identity, data information and so on will not be fully recorded on the chain, but a unique hash value will be stored on the chain instead. Lastly, the hash value can be used for data authentication.
4、Trust Anchor and ONT ID
Trust Anchor refers to the partner that provides authentication services in the ontology ecosystem. You don’t have to apply for an ONT ID from any organization, but only when you obtain a verifiable claim, your ONT ID can be made more credible. The trust anchor issues a verifiable claim for the ONT ID based on the verifiable claim protocol, and the trust anchor reserves the right to reject the user’s application for a verifiable claim.
Ontology Ledger's NeoVM virtual machine, written in Go, is used for executing smart contracts. Compilers including Java Bytecode and C#MSIL can work with the blockchain virtual machines. This promotes participation amongst smart contract developers, allowing them to write smart contracts using Java, C/C#, Go, and other programming languages without having to learn a new language.
6、Influence on Github
Ontology’s code is at https://github.com/ontio. As is shown in the table below, as of March 18, 2019, Ontology’s code commit, Watch, Star and Fork are ranked 30-40 among top 100 projects by capitalization.
Ontology was released on November 27, 2017, and its mainnet was launched on June 30, 2018. The development work was generally carried out in accordance with the roadmap. The roadmap is roughly composed of three stages: Homogeneous Chain Network in the first year (2018); Heterogeneous Chain Network in the second year (2019); Next- Generation Internet in the third year (2019).
According to Odaily’s report, 81% of Ontology’s roadmap for 2018 was completed. The team will update the white paper and roadmap details in the second quarter of 2019. The main task of 2019 is multi-layer sharding and multi-chain expansion. Ontology’s sharding methods include network sharding, state sharding and transaction sharding.
Ontology is aimed at becoming a distributed trust collaboration platform and building a trust-based ecosystem. Ontology features various technologies and has a wide range of applicable raodrios, but it does not have a clear focus. Its influence on Github is among the highest and its development is basically in accordance with the roadmap.
2、Governance and Operatiton
2.1 Institutional Investors
According to Crunchbase, Ontology has carried out two rounds of fundraising. Institutional investors include BlockVC, Hashed, JLAB, 8 Decimal Capital and DHVC.
Ontology’s Institutional Investors, according to Crunchbase
Onchain, the parent company of Ontology, secured tens of millions of yuan in the angel round fundraising from Fosun Group in August 2017, and secured funds from DHVC and Eight-Dimensional Capital in the B-round fundraising in 2018, while the specific amount is unknown.
2.2 Project Background
Ontology is a project that was incubated by Onchain in 2017, therefore members of Ontology are all from Onchain. The origin of Ontology is an identity blockchain project co-established by Onchain and the Guiyang Municipal Government. After the project’s success, the Onchain team extended its businesse to the identification and verification of everything, thus the Ontology project was created.
Onchain is a leading blockchain technology company in China, aiming to provide a complete and flexible business-level distributed ledger framework for companies and organizations. Onchain and NEO were founded by Dahongfei in 2014. Li Jun, the head of Ontology, is the co-founder of Onchain. NEO has a close technical cooperative relationship with Ontology.
The Ontology team is composed of experts in blockchain technology, distributed application development,
product management and design, marketing and business development, and experts and architects from global financial institutions. At present there are more than 60 core team members. Team members not only have prestigious educational backgrounds such as Tsinghua University, Peking University, and Chinese Academy of Sciences, but also have experience in organizations such as IBM, Cisco, EMC, and other large financial institutions, big data and internet companies. From this the team has engaged in distributed systems and decentralized consensus algorithm design, network protocols, storage systems, architecture design, and product research and development.
The core team members include:
Jun Li (Founder of Ontology): Li has a rich academic background, including a Bachelor’s degree in Computer Science, Master’s in Communication Engineering, MBA, and PMP. He is a senior blockchain architect and blockchain solutions professional with 16 years’ work experience in IT and fintech. Li previously provided technical architecture, management, and planning support for top international IT firms and major Chinese financial exchanges. He has taken part in the architecture design and technical management of many major systems, and has built up multiple technical teams and systems from scratch. Li also has a profound knowledge of the finance industry, excelling at internal management and external communication.
Andy Ji (Chief Strategy Officer): Ji Zhoudong has substantial experience in blockchain technology, including being a leader of one of the Top 500 Blockchain groups, Deputy General Manager of Wanda Technology Group Innovation Center and Wanda’s Chief of Blockchain Technology, Deputy Secretary-General of China’s Ministry of Industry and Information Technology’s Blockchain Technology and Industrial Development Forum, a director of Hyperledger, a member of China’s delegation of ISO/IEC TC 307, and Deputy Director of the China Blockchain Ecosystem Alliance (CBEA). Ji has participated in China’s Ministry of Industry and Information Technology’s blockchain white paper and blockchain standards-related work, written several books on blockchain including a blockchain development textbook, and hosted many blockchain community events.
In summary, the Ontology Team is well-staffed and most of its members have experience in the blockchain industry. The team has outstanding R&D capability as well. Ontology has close connections with NEO, and the timely sharing of resources and technology can contribute to Ontology’s R&D and promotion.
Ontology Council is in charge of decision-making in Ontology. To set up and optimize its risk-management system, the Ontology Council requires annual security assessment towards Ontology’s sustainability, including project quality, and progress. This will be assessed with smart contract application, management, risk identification and analysis, and so on. The Ontology Council makes decisions by analyzing events on the platform, such as its impact, range, and frequency. Regarding high-priority events, the Ontology Council will organize specific committees to implement strategies quickly.
In addition to receiving ONG from basic consumption of the entire chain network system (network fees, storage fees, smart contract fees, and fees from other services), to encourage participation in consensus participating nodes will also receive an additional 1% ONG per year from the community incentives allocation.
Token Supply Mechanism
Ontology uses a dual token (ONT and ONG) model. ONT’s total supplpy is 1 billion, along with that of ONG. ONT is mainly used for value transfer on the main chain. ONG is used as the gas for on-chain transactions and smart contract execution. The Ontology network users use the resources in the Ontology system by consuming ONG. The consumed ONG will be finally allocated to all nodes in the system, and different nodes will be rewarded according to their contribution to Ontology network. In addition, the system will release some ONG to the sender and the receiver of a transfer transaction according to the number of ONTs held by users. This report focuses on ONT.
Ontology didn’t conduct the traditional ICO, but allocates ONT to subscribers directly. At present, 61.75% of ONT have been unlocked, but not all of them are in circulation. CoinMarketCap shows that about 32% ONT is in circulation. The next unlock time will be around mid-June 2019. Judging from the current situation, the allocation of ONT is reasonable and it is released on a regular basis. ONT held by the core team remains locked for a long period, which is conducive to maintaining investors’ confidence.
A large amount of ONG will be released in the first seven years, and after that 31,536,000 ONG will be released per year. The total circulating amount will increase linearly. ONG release will be completed in about 18 years.
Organization and Operation Cash Flow
Ontology has not generated a positive cash flow or made any profits. Onchain is the parent company of Ontology and the creator of NEO. The ICO return rate of NEO is about 1000 times when NEO’s price is at its peak. Due to the great success of the NEO project, Onchain has obtained sufficient funds. Onchain is expected to fund Ontology continuously.
Governance and Operation Review
Ontology is invested by some prestigious companies and has powerful technical strength. Its governance model is centralized to some extent. ONT is allocated in a reasonable way and it is released on a regular basis. ONT held by the core team remains locked for a long period, which is conducive to maintaining investors’ confidence.
Ontology Node Distribution
At present, the Ontology mainnet has a total of 47 nodes scattering around the globe. The specific information of each node can be found on the Ontology blockchain explorer. Any qualified user can apply to become a node after approval.
Number of Transactions and Active Addresses
Information on Ontology Blockchain Explorer
According to the Ontology blockchain explorer, each block has merely one transaction in it on average and the number of on-chain transactions is also very small. There are about 223 thousand addresses in total, while the number is not updated in real time.
ONT’s ROI peaked shortly after it was released and then gradually declined. The current ROI is close to zero.
Exchanges and Trading Pairs
ONT Price and Trading Volume
As is shown in the figure above, ONT had independent changes in May, 2018. Its price and trading volume peaked a month before the mainnet launch and had an increase in early September 2018, after which it dropped with the market downturn. Recently, ONT price and trading volume have returned to some extent and have an upward potential.
Exchanges that Have ONT Trading Pairs (part), according to MyToken
According to MyToken's data on March 22, 2019, ONT's current market capitalization ranks 16th in the entire cryptocurrency market. It is listed on 44 exchanges including Binance, OKEX and Huobi. ONT is not widely known abroad and listed on few foreign prestigious exchanges. ONT still has to expand its overseas market.
3.5 Market Review
At present, the Ontology mainnet has a total of 47 nodes scattered around the globe. Any user can apply to become a node. According to Ontology blockchain explorer, the number of ONT on-chain transactions remains small since its mainnet launch and on average there is merely one transaction recorded in each block. At present, there are about 223 thousand addresses in total, while the data is not updated in real time. Over the past six months, ONT has a strong correlation with BTC. The change in ONT price is basically consistent with that of BTC. ONT is mostly listed on domestic exchanges and is not widely known overseas.
Community and User Assessment
Ontology Followers on Twitter and Telegram
Ontology has about 69,000 followers on Twitter with a cumulative probability of 0.9591, which means the number of its Twitter followers surpasses 95.91% of secondary market projects.
Telegram Followers and Cumulative Probability
Ontology has about 19,000 followers on Telegram with a cumulative probability of 0.8076, which means the number of its Telegram followers surpasses 80.76% of secondary market projects. However, its Telegram group is an official Chinese group with most followers from home.
Ontology Dapp List (part), according to Dapp Review
According to Dapp Review on March 21, 2019, most of the Dapps on Ontology platform are games and casinos. Except for HyperDragons GO!, whose 24H users approach 4,000, the number of 24H users of the other DAPPs is extremely small with few active ones.
Trust Anchor Coverage, according to Ontology Official Website
According to Ontology official website, Ontology has 5 trust anchors, which supports 6 types of identity documents and covers 217 countries and regions. The blockchain explorer presents about 140,000 ONT ID Events. It can be seen from the figure that the driver's license, ID card, passport, and residence permit cover the most countries, which means that if the Ontology network becomes popular, these identity documents can meet the daily needs in many countries.
Estimate Value Range
ONT Estimate Value Range
ONT Market Capitalization Share
According to TokenGazer’s valuation model, ONT’s current capitalization share is a bit higher than the upper boundary of the estimate range.
Price Trend and Strategy
Trend of ONT Market Value and Overall Cryptocurrency Market Value
Judging from the figure above, ONT's price is generally higher than the overall cryptocurrency market price when its listed on exchanges.
The figures above show that ONT's price is generally higher than the overall cryptocurrency market price and ONT’s current capitalization share is above the upper boundary of the estimate range. Therefore, TokenGazer believes that if the overall market changes are reasonable, the market value of ONT has now deviated from the estimate value range and is not likely to see a sharp increase in the short term.
Executive editor： Maxwell