What Is OmiseGo OMG?

What Is OmiseGo OMG? 1

What Is OmiseGo (OMG)?

                              What Is OmiseGo OMG? 2

OmiseGo (OMG) is a decentralized cryptocurrency network that focuses on enabling financial inclusion and interoperability

between different platforms. As a scaling solution being developed on the Ethereum blockchain, the OmiseGo platform aims to facilitate transparent, peer-to-peer (P2P) transactions in “real-time.”

Facilitating “Self-Sovereign” Financial Services

According to its official website, the OMG network will facilitate globally accessible, “self-sovereign” financial services. The OMG platform may support several financial asset classes and software applications. OmiseGo’s developers have created a full-featured software development kit (SDK) that may be used to enable fiat and cryptocurrency transfers between different wallets. Users may also earn game credits and loyalty points – which may be managed with OmiseGo’s applications. OMG network users can securely access, manage, and conduct cryptoasset transactions with other users on the platform. Additionally, the OMG platform will provide a decentralized exchange “mechanism” to enable multi-asset, cross-chain interoperability. According to its developers, the proof-of-stake (PoS)-based OmiseGo network will be scalable and aims to achieve a high throughput (TPS) rate. 

OMG Network’s Clearinghouse Enables Secure and Fast Transaction Clearing

OmiseGo’s creators have developed a clearinghouse on the digital asset platform by using protocol consensus and writing Ethereum-based smart contracts that enable secure and fast transaction clearing. As noted on its website, crypto wallet providers may access the public OmiseGo platform via an open-source “white-label” SDK, in order to build functionality for trading crypto and fiat currencies on the OMG network.

“Bonding” with Ethereum Blockchain to Maximize Security

According to OmiseGo’s technical team, “bonding” to the Ethereum blockchain significantly improves the security of the OMG network. It also enables secure transaction validation and token custody. Notably, the OmiseGo team claims they can achieve “unlimited” scalability – as the OMG network could potentially process millions or even billions of transactions per second (TPS). In order to improve network throughput, the OmiseGo platform uses the Plasma architecture (a framework proposed by Vitalik Buterin and Joseph Poon for faster processing of blockchain-based smart contracts). As explained, the developers of the OMG network aim to create an interoperable platform for trading cryptoassets from different blockchains – including the Bitcoin (BTC) network. 

OMG Network Is Completely Decentralized

As a completely decentralized platform, the OMG network is not controlled by a central authority. In order to participate on the OmiseGo platform, users may acquire and stake OMG tokens. Staking allows token holders to validate transactions on the OMG network and receive compensation in the form of transaction fees. According to OmiseGo’s creators, the value of the OMG token will increase as the value and usage of the OMG network increases.

Decentralized Exchange Built Into OMG Network’s “Core Consensus Layer”

As mentioned on OmiseGo’s website, the OMG network will leverage the Plasma architecture, a well-researched Ethereum-based layer 2 scalability solution, to enable “low-cost” security and settlement for financial applications. Transactions on the OmiseGo platform are conducted through a decentralized exchange that is built into the network’s “core consensus layer.” Currently, the OmiseGo team is developing a DEX and a wallet software development kit (SDK) – which will serve as a key part of the OMG network’s financial ecosystem. According to its developers, the “live” OmiseGo platform will be a “performant” and highly secure PoS-based network that enables Plasma-based, low-cost transactions.  

OmiseGo Developers Are Founding Members of Ethereum Community Fund 

In February 2018, the Ethereum Community Fund (ECF) was established in order to fund the development of Ethereum-related infrastructure. As noted on EFC’s website, its founding members include the developers of OmiseGo, blockchain interoperability platform Cosmos, Golem, among others. EFC project’s advisors include Ethereum Co-Founder Vitalik Buterin and Vansa Chatikavanij, the CEO at Omise, the organization behind OMG network’s development. 

Backed By Investments from Japan’s Largest Bank

In mid-2017, Thailand-based Omise managed to raise $25 million through an initial coin offering (ICO). The OmiseGo project has also received investments from Thailand’s Bank of Ayudhya, which is part of the Mitsubishi UFJ Financial Group (MUFG), a $19 billion Japanese financial services firm.

OMG Network Still Undergoing Research and Development

In June 2019, Kasima Tharnpipitchai, the Director of Engineering at OmiseGo, confirmed that OmiseGo platform had not gone into production as it was still in its development and research stage. Tharnpipitchai clarified that businesses were not yet involved with the OmiseGo project and that only Omise’s partners, who are creating “value-added services”, were using the OMG network. He added that the current focus for the OmiseGo project involves working closely with strategic partners to ensure that the initiative is able to “delivery real value.”

OMG Network Not Ready for Staking Funds

Tharnpipitchai, a former senior software engineer at Github, revealed that with the present state of research related to the Plasma architecture and proof of stake systems, development has not reached the point where it’s useful to stake funds on such networks. Moreover, he explained that staking without “transaction value” is not beneficial to anyone. In the coming months, the OmiseGo team is reportedly preparing to implement the OMG network’s settlement protocol. During this phase, Tharnpipitchai claims the platform’s developers will have a better understanding of the “performance characteristics” of the OMG network.

Regulations Play A Key Role in the Global Financial System

In response to a question during an AMA session regarding regulations, Tharnpipitchai said that blockchain-based decentralized networks may benefit from certain guidelines. This, as he believes that regulations play “an important role” in the global financial system. He further noted that blockchain industry participants must help regulators better understand how crypto-related technology works – so that we can build safe and compliant digital asset networks.

Article Produced By
Omar Faridi

https://www.cryptocompare.com/coins/guides/what-is-omisego-omg/

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