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What is OmiseGO (OMG)?
The OmiseGO (OMG), Network is an Ethereum and ERC-20 token value transfer network. It bills itself as the first production-grade layer-2 Ethereum scaling solution, to allow individuals to move money and a range of digital values on the blockchain more quickly, cheaply, and securely.
The Network is a Proof of Authority (PoA) chain that operates as a single block producer. On top of Ethereum, OMG builds a value transfer layer that bundles Ethereum transactions and verifies them in a speed-optimized child chain before returning them to the Ethereum blockchain for verification.
This allows transactions to be confirmed in batches rather than individually, resulting in substantially faster and lower-cost transactions than when using Ethereum directly.
The OMG Network is managed by Omise, a corporation that specialises in enabling cross-border payments in Southeast Asia.
OmiseGo’s slogan is “Unbank the Banked,” implying that they wish to “Unbank the Banked” by delivering exceptional banking services to anyone who needs them, regardless of wealth.
OmiseGo was founded in 2013 to provide online payment solutions, but as the commitment of blockchain became r it shifted the focus to cryptocurrency. OmiseGo now has Vitalik Buterin and Gavin Wood, co-founders of Ethereum, on its advisory board.
The OmiseGo (OMG) cryptocurrency is based on the Ethereum blockchain, and the company is currently developing and implementing a ‘Plasma infrastructure’ that will enable faster transaction speeds throughout the Ethereum network, allowing the blockchain to be genuinely beneficial for the global banking and financial solutions.
This implies that currency conversions, money crediting and debiting, and remittance may all take place on the Ethereum blockchain, and even those without a bank account can utilise it.
Who are the founders of OmiseGO (OMG)?
The OMG Network presently employs more than 50 people in a variety of places throughout the world. Vansa Chatikavanij is the current CEO, and OMG is a subsidiary of SYNQA, a Thailand-based fintech corporation that was previously known as Omise Holdings.
Chatikavanij was the company’s managing director until 2019 when she was promoted to CEO, a position she still holds. OMG Network’s COO is Stephen McNamara, who previously worked at Huawei Technologies as the head of blockchain R&D strategy. Kasima Tharnpipitchai, the CTO of OMG Network, is a seasoned engineer and consultant.
The OMG platform is backed by $25 million in capital raised by founders Jun Hasegawa and Donnie Harinsut through the sale of OMG coins during their 2017 initial coin offering (ICO). SYNQA, the parent company of OMG Network, raised an extra $80 million in Series C funding, which was backed by several large investors, along with Toyota Financial Services Corporation and Sumitomo Mitsui Banking Corporation.
What makes OmiseGO (OMG) unique?
OMG Network argues that Ethereum’s considerable speed and cost constraints must be solved before mainstream businesses and individuals consider using the Ethereum network to create their cryptocurrency products and apps.
Plasma from OMG Network will purge superfluous data from the root chain. It will handle smart contracts in the same way that its foundation, Ethereum, does, but it will only broadcast completed transactions to the Ethereum public chain.
This saves the chain’s players a significant amount of processing power and memory, lowering the cost of interacting with the system’s other participants by roughly two-thirds. It will also speed up transactions to the point where decentralised apps can run without fear of a backlog.
The OMG Network project is designed to make Ethereum more appealing to enterprises and projects looking to scale while reducing their carbon footprint.
It accomplishes this using its plasma-based sidechain solution, which can help lower costs by two-thirds and decrease electricity usage by up to 99 percent when compared to Ethereum while guaranteeing assets are protected by the core Ethereum network.
Security of the OmiseGO network
The manner of the OMG Network will ultimately switch to a proof-of-stake (POS) consensus architecture, allowing users to stake their tokens to help protect the network while also earning incentives.
Until then, OMG Network child chains are protected by a proof-of-authority (PoA) consensus process, which is effectively a simplified kind of proof-of-stake that is currently run by a single block producer (OMG Network itself), who is essentially betting its credibility on keeping honest.
OMG Network intends to switch to proof-of-stake as soon as it is available, after which OMG holders will be able to delegate their stake to validators and become stakeholders in the network’s success and security.
How Many OmiseGO (OMG) Coins?
OMG The maximum supply of network tokens is locked at 140,245,398 OMG and will never rise.
Investors received 65.1 percent of the tokens. An airdrop spread 5% of the total. The project and team are in charge of the remaining 29.9%. The OMG Network reserve smart contract holds 20% of this for future growth and network authentication, while the remaining 9.9% is held in trust for the founding team.
Following the ICO, the OMG reserve and team allocation were both frozen for a year.
How does OmiseGO (OMG) Work?
OMG Network employs the more viable Plasma Child Chain architecture, which groups transactions off-chain into a Merkle tree before delivering a “root hash” comprising the transactions to the Ethereum mainnet regularly.
The child chain and the block producer are monitored by a decentralised group of observers to ensure that network transactions are appropriately confirmed. Watchers ensure that the child chain follows the protocol and does not hoard blocks or mess with transaction orders, guaranteeing that OMG users’ assets are safely transferred.
The OMG utility token is one of the payment options for OMG Network costs, and it will also be used for staking in OMG’s Proof-of-Stake system, which allows users to assist protect the network in exchange for incentives.
Conclusion
OMG is a well-established cryptocurrency that has overcome several challenges. It provides a unique business model in terms of governance, which may appeal to a wide range of investors. We can see why OMG is so famous among crypto enthusiasts when we consider that it is a blockchain that can host decentralised applications.
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