Blockchain

What is OmiseGo (OMG) ? Complete Guide 2020

OmiseGo is an Ethereum-based proof-of-stake (PoS) platform that strives to decentralize payment networks and create an open, public financial system. Its goal is to provide the solution to the fundamental coordination problem among payment processors, financial institutions, and gateways.

OmiseGo uses an ERC-20 token OMG that powers the PoS consensus. The platform is still under heavy development as it is pursuing some dynamic projects. Notably, OmiseGo is building a unique decentralized exchange (DEX) called ODEX in the core of its protocol along with leading development on the first Plasma implementation for Ethereum.

What is OmiseGo Cryptocurrency?

OmiseGo is an Ethereum based open-source payment platform based on the decentralized blockchain technology. True to its motto ‘Unbank the Banked’, it aims to provide good financial services to all. The OmiseGo cryptocurrency is called OMG, and fuels the transactions done via the OmiseGo network.

Technology Behind the Platform

Traditionally, engineering around the walled gardens of the international financial system has been complicated and inefficient. OmiseGo identifies how centralized networks such as SWIFT, FedWire, CHIPS, and ACH serve different functions and operate through various mechanisms, creating a system that requires significant transaction costs, due diligence, and contractual enforcement by all participating parties.

OmiseGo’s platform is designed to redefine the current system by providing a highly scalable DEX (ODEX) that will serve as the infrastructure for multiple markets to plug into and interact with each other while retaining censorship-resistance, transparency, security, and liquidity. With the platform bonded to the Ethereum blockchain, secure transaction validation is maintained, and the integration of Plasma will power the blockchain to a theoretically infinite capacity.

OmiseGo is a reasonably complex platform with many moving parts, so to understand how the underlying technology works it’s best to break down the technical aspects into four primary components:

  • ODEX Decentralized Exchange Protocol
  • Proof of Stake Consensus
  • Plasma Network
  • White-Label Wallet Software SDK

How does OMG work?

The OMG design is based on a Proof-of-Stake blockchain that maintains records corresponding to wallets that may represent any number of assets or commodities, from shopper rewards points, to digital currency, to fiat. The network allows for the matching and trading of orders across these wallets.

What is OMG token?

OmiseGo is a blockchain platform that aims to transform the way payments are made and accepted. Headed by parent company Omise, the OMG token is designed to make it simple to pay for your fast food burger, or your online shopping, with the OmiseGo financial platform.

Can you mine OmiseGo?

No, OmiseGO is an ERC20 token on the Ethereum blockchain. It doesn`t have it’s own blockchain so it doesn’t need mining. All of the OMG tokens were created and sold in an ICO in 2017.

 

About author

Articles

Morris is a Technology enthusiast and a writer by night. He has been a part of TheTechly for quite some time and he contributes knowledgeable news articles from the Technology niche.
Related posts
Blockchain

Paradefi - A pool-based decentralized lending platform

Paradefi is a pool-based decentralized lending platform in which borrowers and lenders interact with…
Read more
Blockchain

WOM Protocol Recommended by Premier Crypto Analyst as only full featured project for August

WOM Protocol, a next-gen MarTech solution that enables brands to leverage word-of-mouth…
Read more
Blockchain

What Is a Cryptojacking and How to Detect It

Cryptocurrency appeared in 2009 with the launch of Bitcoin, created by Satoshi Nakamoto (an…
Read more
Newsletter
Become a Trendsetter

Sign up for TheTechly’s Daily Digest and get the latest and trending technology updates.

[mc4wp_form id="729"]