China has made many advancements in the blockchain industry. Chinese companies see the value and potential of the blockchain and therefore seem prepared more than most to get the most out of the new blockchain revolution.

Ontology, in this case, is no different. Where it differs from other chains, however, is that Ontology’s focus is on business-to-business chains and applications rather than open “public chains.”

The difference between these chains is that public chains are made to be used by the mainstream while business chains are made to be used by businesses.

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History of Ontology

Ontology was created by the company OnChain which has been in business since 2014. The company’s co-founders are Da HongFei and Erik Zhang – both of whom are responsible for also creating the NEO project.

It should be noted that the founder, Da HongFei, does not a substantial stake in the NEO project. In fact, he is more interested in managing his private company named OnChain which provides business solutions in the B2B market to large and small enterprises.

Differences between NEO and Ontology

Although some outsiders use Ontology and NEO interchangeably, the chains have some distinct differences which set them apart. Ontology is an entirely different company (and chain) to NEO, with the only similarity being that they both share the same executive-level staff.

Secondly, and unlike NEO, Ontology is actually a network of blockchains. Ontology aims to help migrate the existing databases that large companies use into the distributed ledger model without causing downtime or damaging them.

There are, however, some similarities between NEO and Ontology. For example, both platforms have the ability to run smart contracts and run decentralized applications. So, in a sense, they are both competitors to the largest distributed chain Ethereum.

Ontology seeks to create a bridge between existing networks and the NEO blockchain – although it’s also not seeking to be used by the general public. Unlike NEO or GAS, whose purpose is to challenge the likes of Bitcoin or Litecoin, Ontology is purely business focused and will serve enterprise companies.

The Distribution of ONT Tokens

Twelve percent of the total ONT supply is distributed to the Ontology community for use, while 28 percent is owned by institutional investors. Ten percent is owned by the NEO council and 35 percent is owned by the Ontology foundation itself.

Ontology did not hold an ICO. Instead, the platform made a series of airdrops on the NEO blockchain back in February 2018 which were sent to Ontology’s newsletter subscribers.

Understanding the use case of Ontology and OnChain’s DNA

As discussed previously. Ontology is not a single blockchain but rather a network of chains. You can think of Ontology as a cloud storage network similar to Dropbox or Amazon Web Service. Many governments, for example, use these data containers for storing vast amounts of information; only authorized entities have access to those containers thus making the network secure from a user standpoint.

A service such as Ontology is needed as transferring confidential files to a public chain such as NEO or Bitcoin would be impractical and dangerous for an organizational point of view. Most public entities would want to keep their files as private as possible while still being able to access them.

Recent Ontology News

Announced that it would launch Paxos Standard, a regulated USD stablecoin: 27 April

Joined partnership with Japanese technology accelerator: 2 May

Updated Ontology TestNet update to version 1.6.1 alpha: 19 April

Click here for the latest Ontology news »

Summary

Unlike NEO, Bitcoin, Ethereum, and others, Ontology is in a unique position as it’s a permission blockchain. Large enterprises could make use of Ontology’s permissions while protecting their sensitive data and with speedy data transfer and modification.

Ontology Price Short-Term Trend: Bearish

Despite having strong fundamentals, the daily chart for Ontology Is in the bearish territory. For one, the price on ONT market is trading below its simple moving average. Secondly, RSI is on the low side of 40, meaning that buyers are unlikely to pick up interest in the coin anytime soon.

Ontology Price Medium-Term Trend: Bearish

Looking at the daily chart, we also see a continuation of the bearish trend. Ontology does not seem to be trending strongly in either direction though, and the MACD is showing signs that it could turn upwards shortly.

However, if you were to place a small position now you might see gains in the few days as momentum appears to be changing to the upside.

Ontology Price Long-Term Trend: Continuation

Looking at Ontology price on weekly bars, we can see a continuation of its price trend and not much else. The currency rallied for a brief time before a correction down to 1.638.

RSI is also showing a continuation pattern at 49 so we could expect a slight bump in prices.

Overall, there are better trading positions that you could invest your money for swing trading than Ontology.