The two well-known Chinese blockchain platforms, NEO (NEO coin) and Ontology (ONT token) have partnered to create a new cross-chain platform. The goal of the two companies is to create an open platform that combines the strength of both blockchains through an interoperability protocol.
This collaboration will require both companies to change their long-term business strategies. While NEO will focus its efforts on the development of protocols and components for the NEO coin, Ontology will further the development of its decentralized identity network.
Key features of the NEO and Ontology Partnership
In a press release, both companies introduce four key features for their interoperability protocol.
- The protocol will not issue tokens or include a dedicated smart contract system
- The protocol will ensure that its use is as easy as possible and will not require blockchain projects to develop their protocol layers or modifications
- The protocol will work towards achieving finality and atomicity for cross-chain transactions with a focus on expanding the scope of dApps through cross-chain smart contract interaction
- Both companies will focus on improving security for cross-chain transactions and use
The goal of this partnership is to allow easy onboarding of diverse companies and projects and the easy development of blockchain solutions for real-life problems and applications.
The founder of Ontology Li Jun commented: “By building an open and global cross-chain system, NEO and Ontology will promote cross-chain value exchange as well as business collaboration to establish the foundational infrastructure for the next-gen Internet. By continuously bolstering our technology and community, we aim to accelerate the development of blockchain applications for various industries to deliver diverse real-use cases.”
The timeline for the NEO coin & Ontology Partnership:
- A whitepaper will be released in Q3 2019 detailing the interoperability solution NEO and Ontology have come up with
- The platform will go live in Q4 2019
Is this a surprising announcement?
While many may not have expected this announcement, a partnership between NEO and Ontology is not a surprising development because Ontology is a product of NEO’s parent company OnChain. Both blockchains have already worked together on an API standardization project back in 2018 and probably regularly share knowledge and insights through OnChain.
What does this mean for the NEO coin?
The NEO community is unsurprisingly quite thrilled and expects the NEO coin price to rise once the platform goes live. More real-life use cases for blockchain applications and low entry barriers to using blockchain platforms is what many experts say is needed for sustainable growth, and this partnership might be able to deliver this for NEO and Ontology. Should the platform gain traction over the next few years, the NEO coin could see its return to the Top 10 coins by market cap and maybe even live up to its nickname “Chinese Ethereum Killer” in the future.
What does this mean for Ontology?
Expectations from Ontology’s community are similar to what is expected from NEO. Should the platform attract projects and users, Ontology will likely rise in popularity, market cap, and token price.
More information about NEO can be found here: NEO – What is NEO? Introduction, Technology & History