OMG NETWORK (OMG) ESSENTIALS
- A payment processing network for transferring value on Ethereum
- The network is supported by OMG, its own native cryptocurrency
- Users can stake OMG to receive more tokens
About OMG Network
The OMG Network is a permissionless and trustless network for transferring value. It makes it possible to move assets directly from blockchain to blockchain without having to rely on third parties such as banks. It operates based on its own native cryptocurrency, OMG.
The OMG Network was initially developed by the Omise company as OmiseGO and later rebranded to OMG Network. After a successful ICO in 2017, OMG’s platform for cheap and unmediated transfers of assets across crypto networks was launched.
Decentralization of payment protocols
While traditional payment systems, such as Visa or PayPal can boast with considerably higher transaction rates than most blockchain-based cryptocurrencies, including Ethereum, they face a problem: centralization. Unlimited control over financial transactions in the hands of a single authority has been seen as one of the main problems that cryptocurrencies were created to solve in the first place. The OMG Network aims to bring the efficiency of traditional payment platforms onto the blockchain while reaping the benefits of both.
But to make quick and efficient blockchain transactions possible, the OMG Network would need to be able to facilitate a higher transaction throughput than offered by Ethereum’s base technology. For this reason, its design implements Plasma, a layer 2 scaling solution on top of Ethereum, which brings a substantial boost to transaction throughput compared to its base layer.
Through Plasma, OMG can facilitate high transaction rates, but still maintain all the benefits of the base blockchain. The reason lies in the fact that all final transaction states on the second-layer network are validated by the base-layer blockchain, which grants them the same level of transparency and security that is enjoyed by regular on-chain Ethereum transactions.
OMG, the coin that makes it work
At the heart of the OMG Network is its own native cryptocurrency, OMG, which fuels the platform’s essential features and makes it possible to transfer assets seamlessly. OMG is based on proof of stake: it is generated through minting and earned by network validators who stake their coins in order to earn the right to validate blocks and keep the network running.
Any user can participate in OMG staking by locking some OMG on the network. This makes you eligible to receive rewards whenever minting a new block.
Transactions of OMG also incur a fee which is distributed proportionately to how many coins the users have staked in the network. OMG follows the Ethereum ERC-20 standard, guaranteeing its fungibility and making it possible to store it in any regular Ethereum-based wallet.
How to buy OMG
You can buy the OMG Network coin on Bitstamp. Sign up for a Bitstamp account and start trading OMG today!
Disclosure: Bitstamp is licensed to engage in virtual currency business activity by the New York State Department of Financial Services.