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What is OmiseGo?

In Blockchain

"Unbank the Banked" - right from the get-go, OmiseGo draws you in with a thought-provoking catchline. It raises questions and demands answers.

Why would the banked want to be unbanked? Let’s dive right in.

What is OmiseGo?

OmiseGo is a public, decentralized network created by the existing company Omise. The token on the OmiseGo network is OMG. OmiseGo raised $25 million in an ICO in July 2017.

OmiseGo has a lot of goals. The project aims to be a decentralized exchange, digital asset gateway, clearing house and a liquidity provider. There’s a lot to unpack.

Essentially, OmiseGo is rectifying the issues with traditional financial institutions, banks and payment processors by creating a network that lacks a centralized hierarchy.

OMG is a Proof of Stake (PoS) network built on Ethereum. Since the network is fully decentralized it is controlled and owned by token holders and users.

OmiseGo vs traditional methods

Banks and payment networks involve centralized risk and all transactions must include third parties. Not only does this increase counterparty risk, it also inevitably slows down processing times and hikes fees.

Thinking back to "Unbank the Banked", the OmiseGo network seeks to eradicate the need for banks or other third-party payment providers by facilitating financial management and transactions within a decentralized network. No involvement of third parties required.

The team and company

Omise is an existing payment services company in Asia. Services like this are vital, especially in developing countries. The Omise team was noted by Forbes Thailand as a team of ‘Fintech Rockstars’ in 2016.

The finance and payment processing niche in crypto isn’t unique to OmiseGo. The difference is the prior experience and established name that this project carries. Omise is already a well-known brand in this niche, which lends credence to their future developments with this project.

Further, Omise already has key partners that could open the doors to future benefits for the OmiseGo network. For example, Omise powers payments for leading brands, one of which is McDonalds in Thailand.

Asia is a proof of concept that shows the importance of payment networks like Omise. In Asia there are lots of smaller countries that develop segmented from each other. This fractional development introduces issues in terms of value transfer that are solved by payment networks. They allow you to send money fast with low fees avoiding traditional barriers.

OmiseGo is being developed by a company with previous experience in these types of financial services. The Omise team is seizing the opportunity to harness the power of blockchain technology to create a powerful decentralized financial network and economy.

They have ambitious goals, but if they can achieve them it will have a vast impact on finance.

OMG Token

Since OMG is a PoS network, the OMG token is vital to the ecosystem because it manages and controls the network.

OMG token holders can use stake their OMG to validate transactions and receive transaction fees. Incorrect validation is punished, just like other PoS networks.

OMG is also used to pay transaction fees on the network.

Current progress

The OmiseGo team have been busy since the ICO in mid 2017. Thus far, they have been working on a wallet Sofware Development Kit (SDK), ODEX, and building on top of Plasma.

Plasma is a smart contract network on Ethereum that is highly scalable in comparison to the standard Ethereum network and can handle much more data.

Higher scalability is achieved by Plasma allowing child chains within chains. OmiseGo are one of the first projects that is building on Plasma.

ODEX is the decentralized exchange created by OmiseGo, running on the OMG network. ODEX will facilitate the exchange of digital assets, with the transactions being validated by PoS network contributors.

ODEX will offer cryptocurrencies that are based on Ethereum, as well as those built on the Bitcoin protocol and similar networks.

The wallet SDK gives develops the ability to build their own digital wallet services on the OMG network which is connected to the decentralized exchange, ODEX, providing access to a number of standardized and proprietary features. This includes the ability to exchange numerous digital assets in a decentralized manner.

This content is not financial advice and should not form the basis of any financial investment decisions nor be seen as a recommendation to buy or sell any good or product. Trading cryptocurrency is complex and comes with a high risk of losing money, particularly if you trade on leverage. You should carefully consider whether trading cryptocurrencies is right for you and take the time to learn how trading works and decide how much money you are prepared to lose.

WRITTEN BY

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