A Scaling Solution for Ethereum
OMG Network (formerly OmiseGo) is a non-custodial second-layer scaling solution for transferring value on Ethereum via ETH and ERC20 tokens. It allows you to access, manage, and transact with digital assets that are kept securely on the blockchain.
Ready for the technical bit? Here goes:
Built using a novel scaling protocol called MoreViable Plasma, OMG’s decentralized child chain architecture batches several transactions off-chain, then verifies them as a single transaction on the Ethereum base chain.
As a result, OMG Network projects run faster and cheaper without compromising Ethereum’s security model, with the potential to scale to thousands of transactions per second while reducing fees by 66%.
Mission & Vision
OMG Network believes that Ethereum’s significant scalability barriers need to be overcome before mainstream businesses will consider integrating with the network. Additionally, most digital payments today are made within single payment platforms like Venmo or Alipay and users can’t transfer funds between them.
OMG seeks to address these problems by integrating multiple payment services and electronic wallets using the OMG Network protocol. The platform provides a real-time trustless market for these providers to trade fiat and digital assets on behalf of their users and helps to replace legacy systems like SWIFT, ACH, and Western Union. Transactions can then take place at high speed and volume, but are ultimately securely settled on the Ethereum base chain.
OMG Network uses a proof-of-authority consensus mechanism, controlled by a single block producer, but is transitioning to a more decentralized proof-of-stake model, following which participants will be able to delegate their stake or run validator nodes. It is powered by the OMG utility token, used to pay fees on the platform, and staked in return for rewards, helping to secure the network.
OMG has a total supply of 140,245,398 tokens that are fully minted and in active circulation. 65.1% of these went on sale during the 2017 ICO, 20% reserved for future development and network costs, 9.9% to compensate the founding team, and 5% airdropped to Ethereum wallet holders with more than 0.1 ETH.
OMG Network Development
Payments processing company Omise, a subsidiary of SYNQA, was founded in 2013 by a team with a background at the International Finance Corporation and World Bank Group. It began exploring how it could integrate blockchain technology in 2015, launching the Omise Blockchain Lab. In 2017, a new organization called OmiseGo was established, with Vitalik Buterin taking a consulting role, and a token sale of the OMG cryptocurrency raised $25 million to fund the development of the new blockchain project.
In recognition of the pace of development over its first three years, and the evolving crypto landscape, 2020 saw the project rebranded to OMG Network. The V1 Mainnet launch, and the integration of the largest and most liquid stablecoin, Tether (USDT), then followed.
Thanks to OMG’s partnerships with companies like Alipay, the world’s largest mobile payment platform, investor interest has been strong since inception, attracting the likes of Pantera Capital and Block Ventures.
OMG Network’s existing partnerships, technical vision, and low-cost scalability potential could make the platform increasingly attractive to other Ethereum-based projects, stablecoins, exchanges, legacy payment/settlement platforms, reward and loyalty points providers, and open banking financial services in the future, further expanding the investment opportunity.
The OMG Network benefits from a large and diverse global community of over 300,000 covering Twitter, Facebook, Reddit, YouTube, GitHub, LinkedIn, and Telegram.
Market and Competition
OMG Network is not short of competitors whose business model and users overlap with its own. As a fast and cheap payment solution, it has competition from the likes of Stellar (XLM) and Ripple (XRP), both of whom also benefit from global partnerships and arguably higher brand recognition amongst the top cryptocurrency projects.
On the scalability front, Polkadot (DOT) offers an alternative to OMG Network, albeit via a network interoperability solution, tapping into a wide range of protocols on Ethereum.
In terms of Plasma-based scaling, Loom Network (LOOM) competes with OMG Network via a shared sidechain solution called Basechain. However, it has not witnessed the same level of market traction or development as OMG Network, and the project is now more focused on another niche.
YouTube influencers, bloggers, and crypto media publishers often cover interviews, tutorials, and news articles regarding OMG Network, particularly concerning scalability issues in the Ethereum ecosystem, its faster and cheaper transactions, partnerships with legacy payment platforms, and stablecoin integration.
News and Views
According to OMG Network CEO Vansa Chatikavanij, the project focus is now on stablecoin issuers, exchanges, and educational infrastructure, as it further pushes the adoption of open, borderless payments via the blockchain.
Keep on top of the latest developments via the OMG Network blog or social media feeds.