Ontology has announced the launch of Ontology Layer 2. As the number of users on blockchain platforms grows rapidly, there is a need to maintain operational efficiency. Scalability, however, seems to be the best strategy.
The launching of Ontology Layer 2 as an off-chain scalability technology improves lower rates while ensuring higher performance. With this, businesses will be able to safely store large amounts of off-chain transaction records and then transfer them to the chain when there is a need to interact. These processes would effectively reduce the cost of transactions and increase performance drastically.
Features of the new system
With Ontology’s cross-chain and cutting-edge core technologies, the performance of Ontology Layer 2 supersedes that of other Layer 2 solutions.
Some of the key features of Ontology Layer 2 include lower cost of storage, full parsing and execution compatibilities, and support for various languages. The parsing and execution versions also enable seamless interaction between deployment contracts. These interactions include the running of multiple virtual operating systems using the same computer. This would result in efficient execution and lesser payments for transactions.
Work processes involved in Ontology layer 2
There are 3 main components of Ontology Layer 2:
- Deposit to Layer 2
- Layer 2 withdrawal
- Layer 2 transactions and security guarantee
In the trading center of Ontology Layer 2, users can carry out a variety of operations like signing contracts, making transactions, and executing contract requests. These transactions can be different from their main chain transaction format, or it can be the same. Now, the transaction collectors will make a collection of all Layer 2 transactions. Users can also broadcast their Layer 2 transactions to multiple collectors.
In the next stage, the collectors would periodically package the Layer 2 transactions they have collected and run them to generate a new state. Moreover, it would be the responsibility of the collectors to submit the root of the new state to the Ontology main chain. After the transactions have been packaged in the block of the Layer 2, the state of the Layer 2 block becomes the result of the root of the new state.
Once a collector has submitted the block state to the main chain, the challenger will verify the Layer 2 block state. Through the collector, the challenger will scrutinize the Layer 2 block to maintain the complete global state.
Ontology has shared an in-depth breakdown of the process and explained the terminologies in a Medium blog post.
Previously, BAI, an additional collateral-backed value token introduced the Ontology (ONT) token as a collateral asset. Therefore, using ONT, a user can generate BAI, thereby making BiDao a multi-collateralized platform.