The 39th live interview of Wali Wali - Dialogue with Kendall Mao, Dean of Ontology Research Institute

Host: Could you please introduce yourself to your fans and the story between you and the original body?

Kendall: Thank you, host! Friends of Walle Finance, I am Kendall from the Ontology Research Institute. I am currently leading the Ontology Research Institute team to research blockchain underlying technologies and data privacy and security technologies and design related solutions.

Ontology is a high-performance public blockchain and distributed trust collaboration platform. After being established in Asia, the Ontology team has gradually developed into an international team covering Europe and the United States. Ontology has always adhered to the "entity-based" approach and is committed to building a blockchain infrastructure platform that supports leading technologies such as cross-chain and Layer 2 expansion, and provides a complete set of decentralized identity and data exchange protocols, thereby effectively ensuring trust collaboration on and off the chain in various industrial chains around the world.

I majored in cryptography and started to pay attention to blockchain technology at an early stage. After seeing Ontology's accumulation in blockchain technology and forward-looking considerations in distributed identity and data, I am more in favor of Ontology's efforts in this area. Attracted by Ontology's entity-based philosophy, I also hope to use my technical capabilities to realize this philosophy together with Ontology, so I joined Ontology and founded the Ontology Research Institute. Ontology is an open blockchain community project, and the Ontology Research Institute is also an open blockchain technology research platform. I also hope that more community partners will discuss blockchain-related content with us.

Moderator: Can you briefly introduce Ontology’s new staking model to us?

Kendall: June 30th this year marks the second anniversary of the launch of the Ontology mainnet. On the eve of the second anniversary of the launch of the Ontology mainnet, Ontology solicited opinions from the global community and upgraded the governance and staking economic model based on full consideration of the rights and interests of users and nodes through node voting. The new governance and staking economic model took effect on July 7.

The new governance and staking economic model probably includes the following points:

1. Lower the threshold for nodes and users to participate in staking. Candidate nodes no longer need to undergo KYC, and can become candidate nodes by staking 10,000 ONT; and for users, as long as they hold ONT, they can choose nodes to stake and obtain incentives.

2. Increase staking incentives. The transaction fees of the Ontology network have always been distributed to nodes and users based on the amount of staking. At the same time, in the first three years after the start of Ontology node staking, the Ontology Foundation will take out 10 million ONG per year as an additional incentive for nodes. In the new model, these two points remain unchanged, but the transaction fee of the Ontology network has been adjusted from the original minimum of 0.01 ONG to 0.05 ONG, which will better balance the income and expenditure of nodes. In addition, in this new model, the Ontology network will release an additional 31 million ONG per year as staking incentives.

Here we also want to mention a change that will take effect soon. In the Ontology governance and staking economic model, users will choose nodes to stake, and the nodes will set a distribution ratio to distribute incentives to users. Recently, a candidate node in a community proposed a more flexible way to distribute incentives between nodes and users. After community discussion and voting, this new method will take effect soon. You can pay attention to Ontology's official channels for detailed information.

Ontology's governance and staking economic model will continue to be optimized. I want to point out that these optimizations will be completed through full discussion with the community and node voting. We hope that more community partners and more nodes will participate in Ontology's governance. If you have good suggestions, you can contact us directly.

Moderator: In the latest governance and pledge economic model, why is the transaction fee adjusted from the original 0.01ONG to 0.05ONG? What are the considerations? What impact will it have on the node ecosystem?

Kendall: The adjustment of transaction fees may be sensitive, which not only affects the node ecology, but also affects the users of Ontology. Let me briefly talk about the original intention of this adjustment and the impact it brings.

An important way to participate in Ontology governance is to stake ONT tokens to become a consensus node or candidate node in the Ontology consensus mechanism. Nodes will receive staking incentives including transaction fees. This incentive should be able to cover the cost of operating a node and bring certain benefits to the node. For nodes, the fee incentive is positively correlated with transaction volume and the fee per transaction. In order to ensure a certain fee incentive and ensure the activity and participation of nodes, there should be a balance between transaction volume and the fee per transaction.

For users, the transaction fee of 0.05 ONG per transaction is still low enough compared to most public chains. Coupled with Ontology’s ability to generate blocks in seconds and quickly confirm, Ontology can still be the first choice for application implementation.

Therefore, after community proposals and full discussions, node voting, and finally a consensus was reached: for a healthier governance model and more sustainable development, it is a reasonable move to adjust each transaction fee to 0.05 ONG under the current network status.

Moderator: The new governance and staking economic model has adjusted the participation threshold for nodes and users, allowing more people to participate. What changes have occurred in the yields of nodes and users at present?

Kendall: In the new governance and staking economic model, the sources of staking incentives are more abundant. This has led to a significant increase in the incentives for staking in Ontology, which can be said to have surpassed the staking incentives of most PoS public chains. Let me explain in detail the three components of Ontology staking incentives:

1. Transaction fee incentives. This part of the incentive comes from the transaction fees generated on the chain, and all transaction fees will be returned to all nodes and pledge users. At present, Ontology already has multiple commercial landing scenarios including OGQ, Kering Home Delivery and Lanxess, which will greatly promote the transaction volume on the Ontology network and increase the transaction fee incentives.

2. The Foundation will issue 10 million ONG every year to incentivize the top 49 nodes to stake. This incentive will last for three years from the start of the Ontology staking activity.

3. Released ONG incentives. Judging from the current release curve, more than 31.5 million ONG will be released to all nodes and users as staking incentives this year.

In developing a new governance and staking economic model, one of the most important guiding principles of Ontology is to allow more community members to participate in Ontology governance. As mentioned earlier: Candidate nodes do not require KYC and only need to stake 10,000 ONT; any user who holds ONT can choose a node to stake and obtain incentives. At the same time, whether it is node staking or user staking, it can be completed with just one click on OWallet. Mobile users can also easily complete staking through ONTO.

You can go to the Ontology node webpage to pay attention to the specific staking method of Ontology, and use the official calculator to calculate the staking incentives. I believe you will be satisfied.

Host: What is special about Ontology in terms of community node governance compared to other public chains? Can you share some experiences with us?

Kendall: Ontology's goal is to become a more decentralized blockchain infrastructure, to provide an excellent distributed trust collaboration platform for the real economy, to enable the real economy to implement applications, and to solve the pain points of real problems. To this end, Ontology hopes that more community members can participate in Ontology governance, whether as nodes or as pledged users, Ontology welcomes them.

The first step we have taken is to lower the threshold for community nodes to enter Ontology governance. Whether it is the improvement of not requiring KYC, or the significant reduction of the minimum amount of staking required, or the increase in staking incentives, they are all aimed at this goal. Ontology has a transparent governance mechanism. Everyone can continue to participate in the governance process through such a governance mechanism that has been agreed upon by the community, and more community nodes will also participate in this process. Community nodes can work together to maintain the stability and security of the Ontology blockchain, and can propose improvement suggestions for the Ontology blockchain network. After community discussion and node voting, excellent suggestions will be implemented.

It should also be noted that becoming a node, making proposals and voting can all be easily done in the open source wallet OWallet. Once again, we hope that more community nodes will participate in Ontology governance, share staking incentives and propose constructive solutions for Ontology.

Host: Currently, Ontology uses a dual-token model of ONT and ONG. Why does the Ontology team want to launch two tokens?

Kendall: The token model serves the governance and economic model. Ontology adopts a dual-token design. Users use ONT to stake and participate in the governance of the Ontology chain, while ONG is used as transaction fees. After ONG is consumed as transaction fees, it enters the staking incentive pool and is redistributed to nodes and staking users participating in governance. After nodes and users obtain ONG, they use it in applications. In such a cycle, ONG increases in value as applications expand.

Although ONT and ONG, two tokens with different functions, are decoupled in design, their value logic is positively correlated. The expansion of business applications will accelerate the circulation of ONG, and increase the incentive income per unit time for users and nodes who stake ONT. This increase in ecological value can be directly reflected in users participating in governance, thereby driving the increase in the value of ONT, a staking tool. At the same time, this decoupled design can, to a certain extent, avoid the rapid increase in transaction fees due to the increase in the value of ONT.

In general, the design of the ONG and ONT dual-token model not only encourages more nodes and users to participate in governance, making the entire Ontology chain more decentralized and creating a better decentralized infrastructure, but also allows users and applications to enjoy high-quality and low-cost blockchain services, stimulate the development of the ecosystem, and accelerate the implementation of blockchain applications.

Moderator: Could you give us a brief introduction to the distributed infrastructure of Ontology?

Kendall: Ontology first provides a distributed trust infrastructure, the Ontology blockchain network. The Ontology blockchain network adopts the VBFT consensus mechanism, supports multiple technologies such as cross-chain and Layer 2 expansion, and has good performance and business application expansion capabilities. Ontology has a transparent governance mechanism. Any community user can continuously participate in the governance process through such a governance mechanism that has been agreed upon by the community, making the Ontology blockchain more decentralized and providing a better trust foundation.

In addition to being a high-performance public blockchain, Ontology is also a distributed trust collaboration platform. Ontology has established a trust collaboration platform that supports a wide range of business scenarios. This is achieved by building a decentralized identity framework, ONT ID, connecting to multiple authentication trust sources, establishing a multi-source authentication system including trust anchors, improving the user data management tool ONTO, and upgrading the distributed data exchange framework DDXF.

ONT ID, a decentralized identity framework based on blockchain and cryptography, gives entities the ability to decentralize their identities, returning identities to the hands of the entities themselves. At the same time, Ontology has connected with multiple authentication trust sources including CFCA and IdentityMind to establish a multi-source authentication system including trust anchors, giving entities the ability to authenticate other entities and increase the trust of other entities. The autonomous data management wallet ONTO allows users to easily manage various credentials, allowing users to authorize other people to use their personal data according to their needs. The distributed data exchange framework DDXF allows users to flow their own data as they wish and gain value from this flow.

In general, Ontology has established a relatively complete distributed trust infrastructure that has the ability to empower various real industries, solve the key pain points in the implementation of blockchain, and enable the real industry to truly benefit from blockchain technology.

Moderator: Digital identity is a topic that has been widely mentioned in recent years. Can you introduce the Ontology distributed digital identity to us?

Kendall: Digital identity is a relatively important basic concept in the digital world. In the definition of the standards organization ISO, identity is a set of related attributes of an entity. In this understanding, digital identity not only includes the mapping of real identity in the digital world, but also includes a unique set of attributes in the digital world. Through the expression of digital identity information, the corresponding entity can be portrayed in the digital world.

In the previous answer, Ontology's decentralized identity framework ONT ID was briefly mentioned. I will introduce it in detail here. Ontology believes that any entity has the right to fully control its identity and data, and to authorize applications and other individuals to access its data as they wish. Based on this understanding, Ontology uses technologies such as blockchain and cryptography to create a decentralized identity framework ONT ID. Through ONT ID, people, money, objects, and things can be quickly identified and connected. It has the characteristics of decentralization, self-management, privacy protection, security and ease of use. ONT ID helps users fully protect the privacy and security of their identity and data, and gives them the right to fully control their identity and data.

ONT ID uses decentralized identifiers (DIDs) to identify users and uses the Ontology native contract to store DID-related data. The DID solution fully complies with the definitions and requirements in the W3C standard draft Decentralized Identifiers (DIDs) v1.0. At the same time, the DID solution has high integrity in implementation, supports operations defined by the W3C standard, and can interoperate with DIDs that follow the same standard and are registered in different blockchains and other systems.

ONT ID uses Verifiable Credential (VC) technology to achieve distributed authentication between identities, and can achieve selective disclosure using technologies such as zero-knowledge proof. For example, a certification agency issued me a verifiable credential that contains my name, age, and other identity proofs. I need to show this credential in some occasions. For example, if I want to attend a party, I may only need to show my name. But in other occasions, such as when I go to an Internet cafe to play games, I only need to prove that I am over 18 years old. Through Ontology's verifiable credential technology, it can be displayed on demand, avoiding excessive information exposure, and better protecting user data privacy. At present, Ontology has connected to multiple authentication trust sources including CFCA and IdentityMind, which can issue verifiable credentials to users. Similarly, Ontology also supports the issuance of credentials between users, enriching the diverse authentication system.

ONT ID supports authorizing other ONT IDs to control the ONT ID; it also supports setting a recovery person, who can help restore control when the private key is lost. For more information about the Ontology ONT ID technology, please visit the Ontology Document Center and official GitHub.

Here, I would also like to emphasize that ONT ID has been applied in multiple scenarios. In addition, OScore based on ONT ID supports behavioral analysis and credit scoring of various digital assets, which can verify the total value of users' assets while protecting the privacy of users' assets. Through ONT ID and OScore, users can connect their identities and asset behaviors, providing trust support in various application scenarios such as DeFi.

Moderator: What achievements has Ontology made in terms of application implementation?

Kendall: A month ago, Ontology became an official partner of Google Cloud. At the same time, three important cooperation cases in the Ontology ecosystem were officially included by Google. I will briefly explain these three cases. The first is the cooperation with OGQ. OGQ is a leading digital asset content platform. Ontology provides technical support for OGQ in copyright chain, and provides customized solutions that are fully integrated with Google Cloud Platform to further help OGQ achieve copyright protection. The second is the cooperation with Kering Home Delivery. The cooperation with Kering Home Delivery is implemented in the business scenario of "online consumption + instant delivery", empowering the new energy vehicle industry. Thanks to Ontology blockchain technology and Google Cloud services, some practical problems in the industry such as high fulfillment costs and low efficiency have been effectively solved. The third is with Lanxess, a well-known German chemical group. Ontology provides Lanxess with customized services such as special chemical delivery solutions, deeply combines blockchain and IoT technology, creates digital identities for products, and forms a special chemical logistics tracking service based on blockchain. This will effectively improve its internal process efficiency and reduce audit time and labor costs.

In addition, Ontology also cooperated with OpenKG to put a large number of knowledge graph user cases on the chain. OpenKG is an open knowledge graph community project advocated by the Language and Knowledge Computing Committee of the Chinese Information Society and jointly maintained by knowledge graph teams from Zhejiang University, Southeast University, Tongji University and other institutions. In this cooperation, Ontology provides comprehensive technical support for the OpenKG project and completes the on-chain recording of the knowledge graph.

Let me talk about another Ontology project. SAGA is developed based on a complete set of data interaction protocols, providing individuals and institutions with a standardized and low-cost decentralized trusted data exchange platform. Through the distributed data exchange framework DDXF independently developed by Ontology, SAGA has the capabilities of decentralized data rights confirmation, data-related power transfer, data security transmission, data privacy protection, point-to-point, cross-platform data exchange, etc. If you are interested, you can go to SAGA's official website for more information: https://sagamarket.io.

Host: What are Ontology’s future plans?

Kendall: In terms of future planning, Ontology has always been positioned as "A blockchain for self-sovereign ID and Data". In the future, Ontology will continue to adhere to the route of self-management of identity and data, allowing technology to empower trust and empower the real economy.

At the end of this question, I want to make an advertisement. Friends who are interested in the present and future of Ontology can join our Chinese Telegram group: https://t.me/OntologyNetworkCN. At the same time, you can follow our two public accounts:

Host: Thank you to Kendall Mao, Dean of Ontology Research Institute, for participating in and supporting this episode of Wall-E Finance live interview!

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