What is cryptocurrency OMG Network (OMG) and how does it work?

What is OmiseGO (OMG)?

OMG Network, formerly OmiseGo, is a non-custodial, layer-2 scaling solution built for the Ethereum blockchain. The OMG Network runs as a single block producer, called a Proof of Authority (PoA) chain. OMG creates a value transfer layer on top of Ethereum that bundles together Ethereum transactions and validates them through a speed-optimized child chain before sending them back to the Ethereum blockchain for confirmation.

This allows the transactions to be verified in batches instead of individually allowing users to enjoy much better speeds and significantly lower-cost transactions than using Ethereum directly.
The OMG Network is run by its parent organization Omise, a company facilitating cross-border payments within Southeast Asia.

How does OMG Network work?

OMG Network uses the Plasma Childchain architecture, MoreViable Plasma, which works by grouping transactions off-chain into a merkle tree before periodically sending a “root hash” containing the transactions to the Ethereum mainnet.

A decentralized set of watchers observe the child chain and the block producer to ensure it accurately confirms network transactions. Watchers check that the child chain conforms to the protocol and does not withhold blocks, or tamper with transaction ordering – ensuring the safe facilitation of assets for OMG users.

The OMG Network utilizes the OMG utility token as one of the payment methods for fees on the OMG Network and it will be used for staking in OMG’s Proof-of-Stake system, allowing users to help secure the network in return for rewards.

Who Are The Founders of OMG Network? (History of OMG Network)

The OMG Network currently consists of a team of more than 50 employees in various locations across the world. The current CEO is Vansa Chatikavanij and OMG operates as a subsidiary of SYNQA – a Thailand-based fintech firm that was formerly known as Omise Holdings.

Chatikavanij held the role of managing director at the company until 2019, prior to her promotion to CEO, which she still is to this day. Stephen McNamara, former head of blockchain R&D strategy at Huawei Technologies, is OMG Network’s COO. Kasima Tharnpipitchai, a heavily experienced engineer and consultant, is the CTO of OMG Network.

The OMG platform is supported by $25 million in funding obtained by selling OMG coins during its 2017 initial coin offering (ICO) by founders Jun Hasegawa and Donnie Harinsut. OMG Network’s parent firm SYNQA additionally raised a further $80 million in Series C funding – and was supported by several major investment firms, including Toyota Financial Services Corporation and Sumitomo Mitsui Banking Corporation.

What Makes OMG Network Unique?

OMG Network believes that Ethereum’s significant speed and cost barriers will need to be overcome before mainstream businesses and people will consider building their cryptocurrency products and applications on the Ethereum network.

OMG Network’s Plasma will get rid of unnecessary data in the root chain. It will handle smart contracts much like its foundation, Ethereum, but will only broadcast completed transactions to the public Ethereum chain. This saves an enormous amount of processing power and memory for the chain’s participants, reducing the cost to interact with the system’s other participants by around 2/3. It will also speed up transactions enough to let decentralized apps run without worrying about backlog.

OMG Network OMG

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What Gives OMG Network Value?

The OMG Network acts as a decentralized exchange of value and facilitates transactions between blockchains without a trusted gateway token. Cross-chain functionality is a vital feature for improving liquidity and user experience in new blockchains. Using the OMG Network reduces pressure from competition and allows purpose-built blockchains to focus on improving services rather than competition-based expenses such as marketing.

The role of the OMG Network (formerly OMG Network) token OMG is to maintain and operate the OMG network while facilitating simple, affordable, faster transactions. By owning OMG tokens users buy the right to validate this blockchain, within its consensus rules. OMG is primarily used to pay for services on the network and also for staking when it is released.

OMG Network’s price fluctuates based on the amount of value it transacts and according to market pressures.

When it comes to its partnerships the OMG Network works with several companies and groups such as AlgoZ, Quantstamp, Hydro Labs, Krungsri Finnovate, Nomura, Ethereum Community Fund, MVL, and ShinhanCard.

How Many OMG Network (OMG) Coins Are There In Circulation?

OMG Network tokens have a fixed maximum supply of 140,245,398 OMG and will never increase beyond this point.

65.1% of tokens were distributed to investors. 5% were distributed in an airdrop. The last 29.9% is held by the project and team. 20% of this is locked in the OMG Network reserve smart contract for funding future developments and network validation, and the remaining 9.9% is reserved for the founding team.

Both the OMG reserve and team allocation were locked for one year after the ICO.

Other Technical Data

Proof-of-Authority (PoA): An algorithm used with blockchains that delivers comparatively fast transactions through a consensus mechanism based on identity as a stake.

Plasma Chain: Refers to a framework that allows the creation of child blockchains that use the main Ethereum chain as a layer of trust and arbitration. In Plasma, child chains can be designed to meet the requirements of specific use cases, specifically those that are not currently feasible on Ethereum.

Child Chain: These serve as the transactional chains of the parent-child architecture, as the parent chain retains minimal features.

How is The OMG Network Secured?

The OMG Mainet is currently secured by a proof-of-authority (POA) consensus mechanism. This means that a single block producer (OMG Network) controls the network and users are currently reliant on its reputation in faithfully validating transactions.

The OMG Network mainnet will eventually move to a proof-of-stake (POS) consensus system, which will allow users to delegate their tokens to validators. By staking their tokens to validators, OMG Network users will be able to earn additional rewards while improving the security of the network.

How To Use OMG Network

The OMG Network launched its mainnet in June 2020. Users can head to the official OMG Network Website to create a OMG web wallet.
Once a wallet has been created users will be able to deposit and manage their funds on a Plasma chain.

The official OMG Network Tutorial for Plasma/Child-chains can be found here.

OMG is primarily used to facilitate transactions of value on OMG Network’s Layer 2 plasma and child chains. OMG will be usable in it’s Proof-of-Stake model when it releases. Additionally, it can be used as a speculative investment tool and a form of payment.

How To Choose an OMG Wallet

The type of OMG Network (OMG) wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets provide the most secure option with offline storage and backup. Both Ledger and Trezor hardware wallets offer storage and staking solutions for OMG. Hardware wallets can involve a bit more of a learning curve and are a more expensive option, however. As such, they may be better suited to storing larger amounts of OMG for more experienced users.

Software wallets provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of OMG or more novice users.

Online wallets or web wallets are also free and easy to use, accessible from multiple devices using a web browser. They are considered hot wallets and can be less secure than hardware or software alternatives, however. As you are likely trusting the platform to manage your OMG, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts or for more experienced frequent traders.

Kriptomat offers a secure storage solution, allowing you to both store and trade your Tezos (OMG) tokens without hassle. Storing your OMG with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Selling and buying OMG Network, or exchanging them for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

OMG Network Staking

The OMG Network does not currently support staking. Recent AMAs with the team suggest that there may be an interim stage with “incentivized watchers” that may provide token holders a staking-like experience (complete with staking rewards).

Conclusion

OMG is a well-established cryptocurrency that has encountered and passed numerous obstacles. It offers a unique value proposition in terms of governance, which many investors may like. If we add to that that OMG is a blockchain that can host decentralized applications, we may see why this cryptocurrency is so popular amongst crypto enthusiasts.

OMG Network FAQ

Is OMG Network a Competitor to Ethereum?

No, OMG Network is a layer 2 protocol. It helps facilitate transactions on the Ethereum Network.

When Will Staking Be Released?

There is no official date for Proof-of-Stake. Users may follow the official OMG Blog for updates.

How To Buy OMG Network

Buying OMG Network coins is as easy as visiting Kriptomat’s how to buy OMG Network page and choosing your preferred method of payment.

How To Sell OMG Network

If you already own OMG Network and hold it on a Kriptomat exchange wallet, you can easily sell OMG coins by navigating the interface and choosing your desired payment option.

OMG Network Price

Several factors influence OMG price & market cap, including exchange inflows and outflows, sentiment, technical and fundamental developments, the news cycle, and the general economic environment.

OMG Network’s price is also directly impacted by the demand of users who use OMG Network tokens (Omisego or OMG) to transact on the network.

Like Bitcoin, the price is decided at any given moment by the cumulative buying and selling of millions of participants worldwide. You can keep up to date on the latest price action and news using crypto exchanges like Kriptomat or one of the many different cryptocurrency tracking services.

The current OMG Network (OMG) price is EUR.

The 24-hour trading volume of XTZ is EUR. OMG Network (OMG) is currently ranked of all cryptocurrencies by total market capitalization, with a market cap of $ EUR. It has a circulating supply of OMG.

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