What is OmiseGO? All You Need to Know About This Blockchain Platform

OmiseGo is a decentralized exchange and payment network that enables value transfers across blockchain networks as well as fiat-to-crypto and crypto-to-crypto investment gates. OmiseGO was created to address the problems associated with money transfer between payment processors, financial institutions, and customers. It’s great for those who don’t have access to financial services, market liquidity, network security or scalability issues since it aims to overcome them.

The Decentralized Exchange

The decentralized exchange on OmiseGo enables cross-chain transactions, which means that users are no longer confined to trading fiat/crypto or BTC or ETH/altcoin pairs but will be able to trade altcoins directly across blockchain networks. To confirm transactions that pass through the decentralized exchange, OmiseGo users will stake their OMG tokens to vote on the validity of blocks using a proof-of-stake consensus.

what is omisego

The Software Developer Kit

It’s critical that wallet providers allow the tokens in trading pairs to be safely stored and properly traded with on a payment system like OmiseGo. That is why, in order to stimulate developers to create user-friendly wallets for the OMG blockchain without requiring prior knowledge of the blockchain, OmisiGO offers users with the Software Developer Kit, which is a set of tools. The Software Developer Kit also allows developers to create links between their apps and other financial institutions’ services. This will allow them to deposit, withdraw, and convert fiat money into digital assets.

Proof-of-Stake consensus

The OMG token’s main function is to be used as a staking token for the OmiseGo proof-of-stake consensus. Users will be able to stake their money on the validity of blocks on the OMG network. Users who stake their tokens actively and honestly will be compensated with transaction fees from the block they validated in proportion to the number of tokens they staked. However, if users stake their tokens on invalid blocks, they will be subject to potential fines of losing all of their staked coins (hard slash) or profits (soft slash).

Why decentralize services?

When services are centralized, a single entity is in charge of and validating the transactions, which usually results in expensive transaction fees due to the need to go through an intermediary. As a result, OmiseGo decided to decentralize services across payment networks so that customers may conduct large volumes of transactions for significantly cheaper than traditional financial services enable.

The team behind OmiseGo, which bills itself as “bulletproof,” aims to improve cryptocurrency exchanges and payment platforms by removing the power from sovereign entities and returning it to platform users with its decentralized service suite, which includes a decentralized market liquidity, clearinghouse, and exchange.

How does the OMG Network work?

The OMG network works as a scaling solution for finance on the Ethereum network that allows high-speed transactions and heavy computations to be executed asynchronously. The structure of the OMG Network is inspired by the plasma architecture introduced by Vitalik Buterin, which enables computation to happen off-chain allowing it to scale out linearly with demand while reducing transaction times considerably.

OMG Tokens are used in the staking contract within this confirmation of stake consensus mechanism called “proof-of-stake”. PoS provides an alternative protocol providing intrinsic benefits over PoW without the environmentally wasteful hashing equipment. Transactions are then processed through a series of smart contracts that execute state transitions that are cryptographically verifiable using’s blockchain or other similar blockchains.

If you were wondering how does OMG lower transaction fees, well we hope we answered it.

OMG Network Finances

The OmiseGo (OMG) team and coin executed a well thought out funding phase to get the project started and keep it going.

Funding

OmiseGo (OMG) did not utilize a private sale.

Instead 65% of all funds were raised through an ICO (public sale) for the OMG Token. Many of these ICO buyers are now OMG users.

OmiseGo (OMG) also has backing from Omise’s financial services business and other banking services to keep the project afloat.

20% of the total supply is held by Omise’s founding team, for further costs down the line. Token holders aren’t the most happy about this.

What is the Secret Behind OmiseGo?

OmiseGo was created by Omise, a payment processor that works in Thailand, Japan, and Singapore. The Omise’s have been members of the Ethereum community since its inception in 2015 and had a blockchain division researching the emerging blockchain industry. As the blockchain section of Omise began researching proof-of-stake consensus, it became apparent that they could develop a platform that would act as a scaling solution for Ethereum through the Plasma chain value transfer layer.

Furthermore, the Omise team, under the leadership of CEO Jun Hasegawa, decided to use this same technology to enable value transfers across different blockchain networks with a liquidity mechanism that allowed users to transfer in and out of various fiat and cryptocurrencies without the need for a centralized broker.

How can I buy OmiseGO (OMG)?

OmiseGo can be bought on most crypto exchanges. Some of my favorites are FTX and Binance.

You can also use a decentralized service provider such as UniSwap.

 

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