The cryptocurrency space is filled with innovative and promising projects. In bull runs like the one we are currently experiencing, dozens of new cryptocurrencies are added to the ever-growing list of almost 12.000 different tokens.
And of course, each one tries to bring something new to the table and add value to its users. They offer cheaper transactions, more secure smart contracts, or improved scalability for mass usage. To follow this narrative, it is interesting to take a closer look at Ontology, a blockchain that aims to achieve all of these improvements and add its own twist to it.
This article will explain the Ontology protocol in detail and demystify the use cases of its two native cryptocurrencies, ONT and ONG. Furthermore, we will provide you with a great solution on how to exchange ONT to ONG in secure, quick, and private way. Let’s get started, shall we?
Introduction to Blockchain Technology
Before we go deeper into the Ontology fundamentals, let’s briefly delve into blockchain technology for those that aren’t familiar with the subject. Blockchain was released together with Bitcoin. It’s goal was to facilitate and record the transactions of the original cryptocurrency.
This original blockchain relies on miners, in most cases very powerful computers. They solve mathematical problems and reach a consensus to verify and confirm the transactions. All this data is publicly available through a digital ledger of transactions, which is distributed to thousands of different nodes across the globe.
This makes blockchain technology a decentralized network that cannot be controlled by a single entity. Instead, it belongs to its users and is open for anyone willing to take part in it.
That said, this proof-of-work consensus method proved to be limited in scalability and use-cases. Bitcoin can be used for exchanging value over the internet, but that’s pretty much it. With the release of Ethereum and its smart contracts, the use cases of blockchain technology skyrocketed.
What Is Ontology?
Ontology borrows the Ethereum smart contract capability model and tries to improve on it. Released just before the market peaked during the 2017-2018 bull run, this blockchain introduced smart contracts with the addition of cross-chain interoperability.
Ontology decided to airdrop its ONT token to the community instead of adopting the ICO model like many competitors during that period. This allowed the token to gain a lot of popularity at the time and was regarded as one of the crypto community favorites.
Initially launched as a NEP-5 token on the NEO (the “Chinese Ethereum”) network, Ontology finally migrated to its own mainnet in October 2018. At that point, it changed its blockchain model to foster not one, but two different cryptocurrencies, ONT and ONG.
In a nutshell, Ontology allows businesses to create proprietary blockchains using its framework. They can benefit from the security features of the original blockchain, while at the same time deploy cryptographic identity proofs (ONT ID) that are essential to a business’ operation process.
Differences Between ONT and ONG
As we mentioned previously, the Ontology blockchain uses two distinct cryptocurrencies:
- ONT is the governance token of the blockchain. You can use it for staking and securing the network. It provides one of the highest returns for native cryptocurrencies with an average of 18% APY.
- ONG is the on-chain token of the Ontology blockchain. You can use it for deploying decentralized applications and paying for the gas fees. Worth noting is that by staking ONT, you will gain ONG rewards.
How to Exchange ONT for ONG
Exchanging ONT to ONG is quite simple if you are using the official ONTO wallet. There’s a swap function that will instantly convert your ONG into ONT. However, this wallet has limited functionality. And if you are using third-party hardware or mobile wallet, you won’t be able to use this function.
Instead, you will need to resort to using cryptocurrency exchanges. One of the best solutions on the market for quick swaps is offered by the Godex exchange. On this platform, you don’t have to create an account, simply provide a wallet address where you wish your ONG tokens to be sent.
Moreover, Godex values your privacy, as they never ask for any identification details. As a result, your crypto holdings cannot be linked to your ID, allowing you to conserve your anonymity on the markets. Finally, you can even make some profits by using their platform. They offer one of the best crypto exchange affiliate programs where you can gain 0.6% of each of your referral’s transactions.
Ontology is an innovative project that is ideal for businesses thanks to its ID and data management capabilities. Moreover, it provides some great yearly returns when you stake ONT to gain ONG. And thanks to our article, you now have a great resource on how to swap between ONT and ONG securely and privately.