Ontology Gas, often abbreviated as ONG, is a crucial component of the Ontology blockchain ecosystem. Ontology itself is a high-performance, public blockchain project and a distributed trust collaboration platform. It aims to provide a platform for secure, interoperable, and scalable applications, encompassing everything from distributed ledgers to smart contracts.
The role of Ontology Gas
Ontology Gas is designed to be the utility token used within the Ontology network. Its primary purpose is to facilitate transactions and operations on the Ontology blockchain. In the Ontology dual-token model, ONG serves as the operational token that powers the functionalities of the network.
The dual-token model of Ontology
Ontology employs a dual-token model consisting of the Ontology Coin (ONT) and Ontology Gas (ONG). This model is designed to separate governance and utility functions:
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Ontology Coin (ONT): ONT is the main governance token of the Ontology network. It provides holders with voting rights on various decisions affecting the blockchain, such as protocol upgrades and changes in governance structure.
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Ontology Gas (ONG): ONG is the token that is used to pay for transaction fees, smart contract execution, and other operational costs within the Ontology ecosystem. It is generated as a reward for ONT holders, similar to how gas is generated in some other blockchain platforms.
Ontology Gas generation and distribution
Ontology Gas is generated through a staking process. Holders of ONT can stake their tokens to participate in network governance and, in return, receive ONG as a reward. The generation of ONG is based on a deflationary model, where the amount of ONG generated decreases over time. This model is designed to incentivize early participation in the network while ensuring long-term sustainability.
Uses of Ontology Gas
ONG serves multiple purposes within the Ontology ecosystem:
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Transaction Fees: ONG is used to pay for transaction fees, making it an essential part of the network's economic model. Every transaction on the Ontology blockchain requires a certain amount of ONG to be processed.
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Smart Contract Execution: Developers and users need ONG to deploy and execute smart contracts on the Ontology network. This ensures that network resources are efficiently allocated and that malicious actors are deterred from spamming the network.
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Resource Allocation: ONG is used to allocate resources within the Ontology blockchain, such as bandwidth and storage. This helps maintain network performance and ensures that resources are available to all users equitably.
Technical aspects of Ontology Gas
Ontology Gas is an integral part of the Ontology blockchain's technical framework. The network uses a consensus mechanism known as the VBFT (Verifiable Byzantine Fault Tolerance) consensus algorithm, which combines aspects of Proof of Stake (PoS), Byzantine Fault Tolerance (BFT), and Verifiable Random Function (VRF) to achieve high throughput and low latency.
Compatibility with other blockchains
Ontology Gas is designed to be interoperable with other blockchain networks. Ontology has developed cross-chain solutions to facilitate interaction between different blockchain ecosystems. This interoperability is achieved through a combination of technical solutions, including cross-chain smart contracts and token swaps, allowing ONG to be used within diverse blockchain contexts.