Author: Gamals Ahmed, CoinEx Business Ambassador
ABSTRACT
Omisego is a cryptocurrency, and decentralized, liquidity provider mechanism, clearinghouse -messaging network. Exchange established in Thailand 2013 by Omise Company. The cryptocurrency abbreviated as OMG. The project was based on the Ethereum network but moved to its blockchain in 2018. The platform works on an open protocol and easily integrates with other blockchain networks; it scales great, so all the calculations are carried out instantly. Omise offers a range of services to make people avoid using centralized banks: these are currency exchange and asset trading. The platform is protected from double spending and cyber attacks. The company launched a decentralized exchange where only Omisego-HODLers can approve transactions with a proof-of-stake algorithm. Moreover, the company has its crypto wallet with the ability to trade fiat and cryptocurrencies.
Unlike nearly all other decentralized exchange platforms, OmiseGo allows for decentralized exchange of other blockchains and between multiple blockchains directly without a trusted gateway token.
1.INTRODUCTION
OMG Network (first developed as OmiseGo) is a non-custodial, Layer 2 scaling solution for transferring value on Ethereum. How the protocol processes transactions is centralized, but its Plasma-based design aims to decentralize network security. It also relies on Ethereum at its final arbitration layer. Low throughput, high and unpredictable transaction fees, and poor user experience limit most blockchain ecosystems. The project’s team believes these are barriers that need to be overcome before businesses and developers will adopt blockchain for real-world applications, leading them to develop the OMG Network.
The core security proposition of Plasma revolves around honest users being able to exit the child chain (in other words, withdraw funds to the root chain) at any time. To exit the child chain, a user submits an exit transaction — along with an exit bond — to the root chain. The exit is subject to a “challenge period,” during which any user can prove, if applicable, that the exit is invalid. If successfully shown to be invalid, the exit is not processed, and the challenger is awarded the exit bond. This exit game is solely dependent on the root chain.
As the child chain relies on the root chain to be its ultimate arbiter, it must periodically commit a hashed version of its state changes to the root chain by way of a smart contract. As opposed to submitting individual transaction data onto the root chain, the child chain bundles transactions into a Merkle tree and submits the root hash. Beyond these core elements, there is no prescribed configuration for a Plasma chain. They can take on different consensus protocols, block validation mechanisms, or fraud proofs. The design is adaptable to the use case. OMG Network is based on the Plasma MoreVP design, an extension of Minimum Viable Plasma optimized for the settlement of payments and value exchange between users and exchanges.
1.1 OVERVIEW ABOUT OMISEGO
OMG Network is a Layer-2 scaling protocol for Ethereum. What this protocol aims to achieve is a higher transaction throughput at a lower cost while leveraging the security guarantees of its underlying layer. OMG Network is predicated on the creation of a child chain that batches transactions before committing them to the root chain, which, in this case, is Ethereum. The child chain relies on the root chain as the trust and arbitration layer. With this type of relationship, if something goes wrong with the child chain, users’ funds should remain safe. The protocol’s token, OMG, is the primary method by which users can pay for transaction fees and interact with the network.
OmiseGO is a public financial technology based on Ethereum, which can be used in popular wallets to provide real-time peer-to-peer trading of assets, as well as in payment services in jurisdictions where such services are poorly developed. OmiseGO allows working with cryptocurrencies and traditional Fiat currencies.
The OMG Network is a scaling solution for finance on Ethereum, enabling transparent, peer-to-peer transactions in real-time. The decentralized network facilitates self-sovereign financial services across geographies, asset classes, and applications.
OmiseGO is an Ethereum-based payment and exchange platform that plans to revolutionize the financial world. It has an experienced development team, renowned advisors, a solid network of Asian banks, and cooperation with corporations such as McDonalds will ensure that investments for this project are successful.
The OMG Network is not owned by any single one party. Instead, it is an open distributed network of validators, and uses a blockchain to enable enforcement of market activity amongst participants.
Omise is the answer to the fundamental problem of coordination between payment systems, gateways and financial institutions. By providing a decentralized exchange on a public blockchain with large volumes and low cost, OmiseGO provides a next generation value transfer service operating in different currencies and asset types.
Through the company’s network connected to the Ethereum network, everyone will be able to conduct financial transactions such as payments, money transfers, payroll, B2B Commerce, supply chain financing, loyalty programs, asset management and trade and other on-demand services in a Fully decentralized and inexpensive way. In addition, millions of major users in the world’s largest growing economies will be able to move from the use of Finance to the use of decentralized currencies such as ETH, BTC and others.
OmiseGO (OMG) technology was created to destroy the existing financial institutions: Unbank the Banked with Ethereum. Technology allows you to combine currency exchange and payment services in real-time. The buyer pays the bill in a convenient currency, and the recipient is credited with the funds in a convenient format as Fiat currencies, as decentralized cryptocurrencies.
The idea of the product is to allow any user of the project to send funds over the network without having a Bank account or paying a fee.
It provides alternative financial and digital commerce tools for everyone without having to go through traditional banks, institutions and card networks. Through the OmiseGO network, anyone will be able to conduct financial transactions such as payments, remittances, payroll deposit, B2B commerce, supply-chain finance, loyalty programs, asset management and trading, and other on-demand services, in a completely decentralized and inexpensive way. Token holders will be eligible to earn transaction fees for interchange payments and decentralized exchange
The service was created in 2015, and since the very beginning, the blockchain development team worked with the Ethereum community to solve a number of problems with financial coordination prevalent in the global payment systems. In early 2017, Omise announced the OmiseGo project — a decentralized platform for exchanging both fiat currencies and cryptocurrencies based on the public blockchain Ethereum. On the 27th of June, during the ICO, investors acquired OMG tokens (ERC20 standard) for a total of $ 25 million. It is worth noting that OmiseGo limited the sale of tokens after this amount, avoiding the threat of a gold rush. On the 9th of August, Vitaliy Buterin and Joseph Poon published White Paper about the Plasma platform, designed to improve the performance of smart contracts. The project team immediately announced that their decision would be built on Plasma. The media announced that OMG tokens had risen in price by 250% in a matter of hours, and OmiseGo became the largest project on the Ethereum blockchain with a record capitalization exceeding one billion dollars.
The OMG cryptocurrency was launched on the platform and is an ERC20 token. This means that OmiseGO sits on the Ethereum blockchain. OMG uses Ethereum for its workflows, but also develops symbiotic relationships with the network, acting as a scaling solution.
OMG includes a fully public, currency-agnostic decentralized exchange (DEX) network, built to scale infinitely using the Plasma architecture, and secured by Ethereum. The OMG Network will be able to interact with Bitcoin (or Bitcoin-like blockchains) and other blockchain platforms through clearing houses in state channels or smart contracts, as well as with digital fiat platforms and economies through collateralized fiat tokens. This, in combination with virtually unlimited scalability, will enable the OMG Network to serve essentially all global transactions simultaneously.
OMG is building infrastructure that will provide unprecedented financial access and sovereignty to people that is unmatched by banks today. The design permits user custody of funds, which decentralizes some of the functionality of banks, but not all, while simultaneously increasing usability. Banks still have roles to play, and many of them are interested in using the OMG network for their asset exchange needs. OMG hopes to also help them increase the quality of the services they can provide to people who are their voluntary customers.
OMG offers mainstream end-customers an introduction to the many benefits of blockchain technology. The wallet SDK will make it easy to create decentralized apps that enable end users to interact with many blockchains, without having to leave their comfort zone.
