Crypto Academy

What is OmiseGo (OMG)?


4 min reading

Let's take a look at another cryptocurrency such as OmiseGo (OMG)!

Whats Omisego

What is OmiseGo (OMG)?

OmiseGo is an Ethereum scaling solution that is fully ERC-20 and Ethereum compliant and aims to address some of the scaling issues that plague Ethereum. This crypto-currency is known as a Tier 2 solution for transferring values to Ethereum. It also aims to reduce fees and transaction times without compromising the security of the last one.

Technical aspects of OmiseGo

As mentioned earlier, OMG is known as a Level 2 solution, which was built on top of an existing blockchain. Since transactions are processed at the second level, space is freed up on the Ethereum blockchain. Its decentralized exchange allows cross-network transactions, which means that users will no longer be limited to trading pairs such as fiat/crypto or Eth/altcoins, but will be able to exchange altcoins for altcoins through the blockchain network. These transactions are approved by the Proof of Stake Consensus, where OMG users stake tokens to vote for the block’s validity.

Who created OmiseGo? 

OmiseGo (OMG) was created by Omise, a payment processor serving Thailand, Japan, and Singapore. The OmiseGo team had a research department on the emerging blockchain industry. Research on proof of rate consensus has shown that a platform can be created that will serve as a scaling solution for Ethereum. It was also found that this technology allows transfers between different blockchains and different networks, as well as in different currencies (fiat and cryptocurrencies) without using a centralized broker. Thus, this discovery led to the creation in 2017 of OmiseGo, led by CEO Jun Hasegawa.

Consensus by confirmation of the rate

The main purpose of OMG is to use it as a token for OMG Proof-of-Stake consensus betting. This will give users the ability to place bets on the duration of blocks on the network.

If everything is done correctly, users will be rewarded with a transaction fee for the block they have successfully validated, proportional to the number of tokens put into play. But if the opposite happens, users will be fined. Loss of all entered tokens. into the game or losing its impact.

The Importance of OmiseGo (OMG)

Congestion on every crypto network is a major setback. On the Ethereum network, it usually takes 10-20 seconds to confirm a transaction. However, if the price of gas rises, it can take hours or even days for a transaction to be approved. The OMG network solves this problem by offering fast and low-cost transactions.

The unit of payment of the system is the OMG token, which has its own blockchain that protects data transfer through the Proof-of-Stake algorithm. This not only facilitates but also accelerates the execution of transactions on the network. The main advantages of the OmiseGO (OMG) blockchain are decentralization, scalability, high performance, public availability, the presence of a mechanism that is responsible for the liquidity of the transferred currencies, and the provision of asset management.

The purpose

The main idea of the OmiseGO (OMG) project is to allow every user of the system to make transactions via the network without fees. In this case, there is no need to have a bank account. The ultimate goal of OmiseGO (OMG) is to create an ideal competition in the foreign exchange world.

In conclusion, crypto-currencies are created, and as time passes there are modifications that come with them. OMG is one of these updates to the Ethereum cryptocurrency. It comes to facilitate transactions thus avoiding delay in the fulfillment of transactions. OMG is simply a value transfer layer that enables fast transactions at low fee rates.