On June 1, 2020 OmiseGO project rebranded as OMG Network. With the brand being refreshed, mainnet finally getting launched and OMG performance all over the news, it is the best time to introduce it to those who were not familiar with it previously. In this article we’re going to tell you how OMG Network intends to disrupt the economy and crypto space, what is the foundation of OMG’s worth and how are they finally delivering on the long-expected launch.
What is OMG Network (OMG)?
OMG Network is a platform built on a second layer of Ethereum. Its native currency has the same name and ticker OMG.
OMG Network is unique in comparison to other chains built on top of Ethereum because first and foremost it is designed to be a decentralized exchange network for eWallet communication. With the help of oracle-like on-chain clearinghouses, users are supposed to be able to exchange their funds with each other, and the validators are rewarded with OMG for settling the deals and recording them on the blockchain.
The team has a certain mission for the project: in the world where 60% of the population is connected to the Internet, finance is still lagging behind. Access to financial services is a basic human right that this team is striving to provide while disrupting the existing models, both for the traditional and transacting with cryptocurrencies. In short, OMG Network exists to provide inclusive financial services globally.
The Team Behind OMG Network
The project was started in 2017, called OmiseGO back then. Its “parent” company, Omise, is a South-East Asian-based payment processor, which is quite successful on the region’s market. From the very early days, OMG had the support of a large and established organization.
OMG Network’s offices and team are based across Japan, Thailand, Singapore and Poland, and unite about fifty employees.
In June, 2020 the rebranding of OmiseGO took place. As they explain in their blog, the need for rebranding was there because of three reasons: one, their team expanded beyond the region, to the places where Omise is not that prominent, but the project has to stand on its own. Two, their core product is the network, hence the “Network” in the name. And three, last but not least, the association with the parent company was rather disruptive in the business communications. The rebranding was scheduled to happen simultaneously to the OMG Network v1, which included MoreVP, going live.
The Tech of OMG Network
From a technical standpoint, OMG Network is an implementation of Ethereum’s Plasma. It serves as a child chain to the ETH network, and the relation with the parent and child chains is governed through smart contracts. In OMG Network, a specifically designed variation of Plasma, MoreVP (which stands for, no kidding, More Viable Plasma) is being used.
Child chain — in this case, OMG Network — shoulders most of the transaction processing on-chain. However, it would also rely on the parent chain — Ethereum — for trust and arbitration. This is how you get a symbiotic network that combines more lightweight transactions with the reliability of the Ethereum network. More than that, child chain rules allow the rules that would not have been possible on the parent chain. This is why it’s possible for OMG to be validated by Proof-of-Stake.
MoreVP and Watchers
For security, MoreVP, being a child chain to Ethereum, relies on a network of watchers. They are incentivized to overview the network in the same way as validators or node operators: by being able to participate in staking.
Now that you get the picture, let’s sum the network’s structure up:
Layer one: Ethereum, smart contracts and entry/exit points for OMG Network;
Layer two: MoreVP, a child chain that handles transactions and sends blocks to a smart contract for verification;
Watcher network: another layer of OMG Network, through which anyone can observe the fairness of operations on the chain.
E-Wallets and OmiseGO DEX
Originally, OmiseGO was envisioned as a decentralized exchange solution for an eWallet network before DEXs were a thing. Through an on-chain clearinghouse, users of the network can transfer and exchange currencies with the security of a decentralized network. In this relationship, OMG is used as a decentralized and currency agnostic intermediary.
In 2020, OMG Network has shown great performance, most probably, started by the fact that OMG got listed on Coinbase. The OMG price hit the record lows of $0.337152, on March 13, but from then on it has spiked up to $2.20 in May, a six-times increase in price. Many altcoins have shown such a divergence from the Bitcoin prices, hinting at a possible altcoin season coming.
At the moment of writing the article, 1 OMG is worth $1.66. Its circulating (and total) supply is 140,245,398 OMG and the market cap equals to $232,788,888, making it rank #36.
In addition to an official Web wallet, being an ERC-20 token, OMG can be stored in the majority of wallets that support the standard. We recommend Exodus for hot storage on multiple platforms and Trezor for cold storage. In these wallets, you can swap cryptocurrencies with OMG in any direction with the help of ChangeHero exchange function integration.
Buy and spend
OMG can be bought on a variety of exchanges like Coinbase and Huobi, it has very decent exposure when it comes to trading platforms. If you own some crypto already, you can easily buy OMG on ChangeHero at the best rates.
While it’s not really intended as a means of payment, you can still make purchases with OMG if your vendor uses cryptocurrency gateways like CoinPayments, CoinGate or Coinify. Mostly, Internet and crypto services accept OMG.
OMG Network has a very active Reddit community: daily discussion posts have dozens of replies to them. In total, there are 43 thousand members.
With the news of a mainnet launch, OMG is back in the spotlight on crypto Twitter.
Alex Saunders is the CEO of Nuggets News who interviewed Vansa Chatikavanij. He’s optimistic regarding the developments of OMG Network, since they were virtually the first ones to implement a working Plasma solution on their chain.
But guess who else is supportive of this?
That’s right, the voice of the Ethereum dev community, Vitalik Buterin. He’s a known supporter of OMG Network, since after all they are developing within the Ethereum ecosystem.
Most of the public figures from the OMG Network team are active on Twitter as well.
A few weeks ago, OMG scored a few significant listings, such as Coinbase and Binance.US. In this tweet a founder of OmiseGO, Jun Hasegawa, is congratulating the team on another achievement. That event also was what kickstarted the token’s pump.
What’s in Store for OMG Network
With a new brand, it’s important for the project to keep the pace of development and earn the name for itself. The pipeline for the next few releases includes improving exit times and scaling (which are infamously long for the original Plasma, one or two weeks for arbitration), as well as OMG staking.
In the recent news, apart from the v1 Network Mainnet launch, Tether has launched USDT on OMG Network. OMG Network also pledged transparency of operations by partnering with Messari and joining their Disclosures Registry. This is a necessary step, since OMG Network operates in an at least partially centralized manner, after all.
OMG Network has somewhat evolved past its initial use case of becoming the DEX to e-wallet network. From now on, in addition to that goal, they are planning on focusing on DeFi and enterprise solutions, as Vansa Chatikavanij, the project’s CEO, said in her recent interview.
To Wrap Things Up
OMG Network is a project that is finally officially launched, after years of being in testnet. Now we will have to watch how the team is going to fulfill their mission of “unbanking the banked”. Synchronising rebranding with a mainnet launch might be deemed risky by some but this is a necessary step to help the project stand on its own.
Meanwhile, while the project is finally into motion but still at the start of its journey, it’s the right time to add it to your crypto roster. Who knows how high OMG may go Soon™? You can exchange crypto to OMG with ChangeHero right now or at any time you see fit — we’re always online, always with the best rates.