Financial models are undergoing a metamorphosis brought on by the global development of blockchain technology. More and more, a shift toward fewer boundaries, more control for individuals and businesses over their finances and additional security and privacy can be observed. OMG harnesses the power of the Ethereum Blockchain to use decentralization as an answer to some of the world’s most pressing issues.
Our OMG Network guide explains what these matters are and how the OMG Network proposes to solve them.
The OmiseGo Cryptocurrency: Introduction and Definition
The OMG Network believes that financial access holds an incredible life-improving potential. When the founders of OMG, Jun Hasegawa and Donnie Harinsut, came up with their public Ethereum-based financial solution, their goal was to address the issues unbanked populations are still facing in today’s society. Over 2 billion people live without access to a bank, with Asia housing hundreds of millions of them. For these people, sending or receiving money can only be done through costly solutions. The main advantage of OMG is that it creates economic opportunities for anyone with a mobile phone and access to the Internet by allowing them to store, send and receive ETH or any other ERC-20 tokens easily and affordably.
This puts dematerialized money at their disposal, which leaves the question of how it can be used beyond peer-to-peer transactions. This is where the OMG Network sets itself aside from the competition, solving what the OMG team sees as the one obstacle between cryptocurrencies and universal adoption. It addresses the coordination issues between payment processors, financial institutions, and gateways by providing a decentralized application through which various types of assets can be sent effortlessly and cheaply from one network to another across countries. This means that it supports fiat currencies as well as crypto tokens or even value assets such as loyalty points, all from one blockchain secure system.
Initially aimed at individual users located in South-East Asia, OMG now essentially counts all the advantages of a bank without the costs, the need to depend on their acceptance or on any trusted third party at all. This allows anyone to have full control over their finances. Wallet providers and merchants can also benefit from OMG’s solution. All Electronic Payment Providers (EPPs) can integrate its technology and offer it to their customers at a lower cost than any system they may already have in place.
To that end, the OMG Network is building a whole system with its own blockchain in the form of an open, permission-less network, a decentralized exchange (DEX), an OMG wallet, a white-label SDK and, of course, its own token (OMG).
How Does OMG Network (OMG) Work?
The OMG network relies on a Plasma technology and offers a Layer-2 scaling solution which is entirely trustless and non-custodial. This solves the scalability issue Ethereum – along with countless other cryptographic projects – has been facing and ensures the OMG Network can operate at extremely high speeds, averaging billions of state updates per second.
The OMG blockchain itself revolves around a Proof of Stake (PoS)-type consensus which handles transfers between e-wallets without requiring trust between the two parties. Thanks to a built-in trading engine, e-wallet providers are able to publish orders to be matched with other parties looking to trade a variety of assets. To offer an even more universal service, OmiseGo (OMG) is interoperable and supports both the Ethereum blockchain and the Lightning Network payment technology.
Fully compatible with the Ethereum blockchain, the system implies (for instance) that all transaction-validating nodes present on the OMG blockchain should be set up as nodes on Ethereum’s too. To put it simply, the OMG Network can handle high volumes of transactions which transit through it and are ultimately settled on Ethereum’s blockchain.
The OMG Token
The main use of OMG Tokens is block confirmation. Nodes need to hold both OMG and Ethereum tokens in order to become validators. This validator status makes any user eligible to receive rewards in the form of fees generated by the network. This Proof of Stake system makes it more profitable to own more OMG tokens, as the reward is proportional to the number of coins a user stakes. This staking solution contributes to the network’s security, as any participant caught trying to use it to their own, illegal ends will see the tokens they are staking burned: the tokens effectively act as a bond.
At the time of writing, OMG occupies rank 39 at the market cap and trades at $1.73 USD per token. While its price is significantly lower than it was in the first year following its launch, it does seem to have gained in stability. This much-needed quality is paramount in a context where real-world applications are at the heart of OMG’s promises.
Why Use OMG Network?
OMG-enabled wallets can support a wide variety of uses, from transfers to bill payment, a number of financial services (such as loans or deposits) and smart contracts. What makes the OMG project so unique is the ability it gives almost anyone to create their own wallet by adding a layer to Ethereum. Highly customizable and compatible, all OMG-based wallets are able to interact seamlessly across the network.
The robust and multipurpose platform OMG is building is an all-encompassing solution with exceptional throughput. It operates at a third of the average cost of the Ethereum Network all while maintaining similar levels of security thanks to smart contract adjudicators and a decentralized watcher network. It is also extremely energy-efficient and provides an open environment for developers.
How to Buy OMG Network (OMG) on Bitit?
OMG coins may be purchased from some DEXs, though most will require you to start by buying Bitcoin or Ethereum, which you will then be able to exchange for OMG tokens. While this is common practice, it is unnecessarily cumbersome, especially to those looking to take advantage of the universal nature of OMG.
Bitit was created with simplicity in mind to grant access to the world of cryptocurrencies to just about anyone. On Bitit, you can purchase a wide array of assets (including OMG Tokens) using the means of payment that is most convenient to you. For instance, you could pay via credit or debit card, bank transfer or even cash through an online shop-like interface. Visualize exchange rates at a glance and have your OMG coins sent directly to your wallet of choice in just a few steps.
How to Store OMG?
OMG tokens fall under the ERC-20 category. As such, they can be stored on any compatible storage solution. MyEtherWallet is a reputable one if you prefer to keep costs down. The most trustworthy option, however, does remain that of physical wallets such as the Ledger or the Trezor. They never allow your private key to be accessed from the Internet and ensure your assets are kept safe even while a transaction is taking place. Alternatively, paper wallets may boast the best of both worlds as they allow you to store your private key offline at a fraction of the price, and sometimes even for free.
As is the case with several of the more recent crypto projects, the main drawback of OMG does remain its lack of global adoption. OMG news is promising, however, as its parent firm, Thailand FinTech SYNQA, just secured $80 million in capital from a round of Series C investments. As of June 2020, OMG is considered to be one of the biggest stablecoins on the crypto scene, thanks to more and more large platforms adding it to their lists of offerings. Over the past few weeks, it does seem to have been attracting the attention of a significant number of investors. Time will tell whether or not their predictions are correct!