Ondo Finance launched Ondo Network, a new execution layer created for applications involving tokenized real-world assets and cryptocurrencies.
The proposal is to combine the execution speed found on centralized exchanges with non-custodial trading and settlement directly on blockchain networks.
The new infrastructure was presented as an evolution of Ondo Chain, the company's previous project. According to CEO Ian De Bode, the change represents the implementation of a strategy that had originally already been planned.
“I would say it is more of an evolution, but we will not operate Ondo Network and Ondo Chain in parallel,” De Bode said.
Ondo shifts infrastructure focus
Ondo initially intended to develop a complete blockchain with Ondo Chain. The goal was to create its own infrastructure to bring real-world assets to blockchain networks.
During the development of Ondo Perps, however, the company identified a different limitation. The execution of operations presented a greater bottleneck than the settlement stage.
Based on this finding, Ondo decided to modify the architecture. Instead of concentrating all functions in a single ledger, the new network separates execution, verification, and settlement.
This structure seeks to increase the speed of operations without removing users' control over their own assets.
Privacy and speed gain ground
According to De Bode, Ondo Network was designed to offer fast execution and privacy as native features.
“The Ondo Network is a new type of architecture that seeks a different configuration, in which privacy is enabled by default, execution speed can rival centralized exchanges, while at the same time maintaining the self-custody design, verifiable fairness, and permissionless access that make blockchains so powerful,” he said.
Network verification will be carried out by a decentralized structure of attesters. These participants determine which codes can be executed in secure hardware enclaves.
The model makes it possible to verify whether the authorized code is actually being executed within these protected environments.
Currently, the settlement of asset transfers takes place on Ethereum. Ondo also intends to expand this support to other public blockchains.
State of operations will be recorded on-chain
The company also plans to record the final state of operations on public blockchains. The measure should create a permanent and verifiable record of the activities carried out by the network.
“Over time, the network will also record the final state on public blockchains to allow a durable and immutable record (similar to what Lighter does). At the moment, this record exists only within the enclaves,” De Bode said.
Ondo Network was not created exclusively for perpetual futures contracts. The infrastructure may be used in different applications that depend on fast execution, privacy, and verification.
Among the possible uses are spot markets, lending, and structured products. Non-financial applications may also use the technology.
Ondo Perps debuts on the new network
The Ondo Perps is the first application developed on Ondo Network.
The platform allows trading perpetual futures contracts 24 hours a day, seven days a week. The contracts are linked to stocks and commodities.
The products use tokenized real-world assets as collateral, connecting traditional market infrastructure to the blockchain environment.
The choice of Ondo Perps as the first application is also related to the problem that led to the creation of the new architecture: the need to execute operations at greater speed.
ONDO token maintains function in the ecosystem
The creation of Ondo Network does not change the main function of the ONDO token.
De Bode explained that the asset continues to be used as a governance token and as part of the incentive structure of the Ondo ecosystem.
The role should gain even more importance as the network increases the number of participants responsible for its security and verification.
"As the Ondo Network decentralizes (with more attesters, observers, and economic security), ONDO will be the core of incentives and governance for this layer," De Bode said.
With the new architecture, Ondo now focuses its efforts on infrastructure capable of separating the speed needed to execute trades from the settlement stage on public blockchains. The company also intends to expand the network's use cases beyond perpetual contract trading.
