The OMISEGO (OMG) CRYPTO Network, also known as OmiseGo, is a value transfer network for Ethereum and any ERC-20 token. It describes itself as the very first production-grade layer-2 ethereum scaling solution. It aims to let people move money and various digital values on the blockchain cheaper, faster, and without compromising security.
What is OMG Network?
The OMISEGO (OMG) CRYPTO Network is a public, decentralized network that enables high throughput, low-cost peer-to-peer transactions. Anyone can exchange the values across different regions, asset types, and applications with the OMISEGO (OMG) CRYPTO Network. The OMG was previously known as OmiseGo. The OMISEGO (OMG) CRYPTO Network is built on Plasma, a framework developed by Ethereum creator Vitalik Buterin and the blockchain specialist Joseph Poon.
The OMISEGO (OMG) CRYPTO Network employs Layer-2 plasma architecture to provide high throughput and safety guarantees for the third parties who want to build a scalable and decentralized payment app on the ETH (Ethereum) network. Furthermore, this network employs its users to manage, access easily, and deal with the digital assets that are stored safely on the blockchain.
Furthermore, Layer 2 is a secondary protocol built on an existing blockchain system. The main aim of the Layer 2 protocols is to solve the transaction speed and scaling difficulties that trouble the cryptocurrency networks.
The OMISEGO (OMG) CRYPTO Network builds a value transfer layer on the top of Ethereum that further combines the ethereum transactions and verifies them via a speed-optimized blockchain or a child chain before returning them to the ethereum blockchain for confirmation. The plasma chains, also called child chains, are separate blockchains connected to the main ethereum chain.
History of OMG Network
The OMISEGO (OMG) CRYPTO Network, as mentioned above, was also known as OmiseGo and was launched in the year 2017. The company behind this OmiseGo is Omise, a payment gateway provider that has its headquarters in Thailand. The Omise itself was founded in 2013, and the ICO (initial coin offering) occurred in the year 2017, which raised $25 million.
Jun Hasegawa leads the Omise team, and before working here at Omise, he was a director at the Alpha-do Inc. and was the co-founder and CEO of LIFEmee Inc. The other notable members of this team are Anuchit Chitpirom (chief operating officer), Ezra Don Harinsut (CEO/ Co-founder), June Seah (chief business development officer), Frederico Araujo (chief information officer), Nick Gan (chief growth officer), Kazuhiro Koiso (chief financial officer) and Max Rokhline (chief product officer).
The OMISEGO (OMG) Crypto Network solves the scalability issue by implementing a scaling system popularly known as ‘More Viable Plasma (MoreVP), to increase transaction throughput considerably. The OMISEGO (OMG) Crypto Network foundation, in particular, bundled the transactions and compressed them into a single transaction, verifying them on the OMG Foundation child chain. After that, the child chain returns confirmed transactions to Ethereum for blockchain confirmation. THANKS TO THE BUNDLING TECHNIQUE; the OMG Foundation can process thousands of transactions every second. Because the gas fees or the transaction fees on the Ethereum are paid on the bundled, compressed transaction instead of each transaction, transaction costs are one-third of what they would be on ethereum.
What are the main components of the OMG Network?
Following are the three main components of the OmiseGo (OMG) Crypto Network:
- The OMISEGO (OMG) CRYPTO NETWORK smart contracts, deployed to Ethereum, provide the interface through which different users can move the funds into and out of the network.
- Secondly, the child chain application managed by the OmiseGo (OMG) Crypto Network team receives users’ transactions, further combines them into blocks, and shares these blocks to the OmiseGo (OMG) Crypto Network intelligent contracts.
- The Watcher application observes the Child Chain application, validating the behavior and reporting any wrongdoing to the subscribed users.
Financial Status of the OMISEGO Crypto Network
The OMG token is the platform’s utility token and the primary mode of interaction with the platform. It is also based on the ERC-20 token standard like other popular cryptocurrencies. The total supply of these OMG Tokens is around 140,245,398, out of which 65.1% was a public ICO (initial coin offering), 5% was shared with the users freely in their wallets, and 20% was kept as a reserve for the OMG network. Apart from that, the remaining 9.9% have been reserved for the team.