What is the OmiseGo (OMG) project?

What is OmiseGo?

OmiseGo is an independent subsidiary of Omise company, a payment processor founded in 2013 and established in South East Asia, primarily Thailand.

In 2015, the company began to explore how it could use blockchain technology to grow its business. In order to conduct research and testing, it created the Omise Blockchain Lab (OBL).

In 2017, the OBL completes the prototype of OmiseGo, a blockchain network with the mission of allowing anyone to access financial services such as the exchange and spending of digital assets in any place and at any time.

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After these few years of research, OmiseGo has its own blockchain-based payment platform which includes two products, OmiseGo Network and OmiseGO eWallet Suite.

OmiseGo’s clients are primarily companies, startups and non-profit organizations looking to develop their payment and e-wallet strategy.

In parallel with the provision of a payment infrastructure, OmiseGo works with these entities to provide them with technical support on the co-creation of other products specific to their activities.

To sum up, the Thai company wants to create with OmiseGo a future-ready infrastructure of payments and value transfer services which it hopes will be widely adopted.

Let’s see in more detail how the OmiseGo ecosystem works and what the OMG token is used for.

The OmiseGo ecosystem

OmiseGo is a network using the Ethereum (ETH) blockhain, which seeks to enable financial inclusion for all by providing decentralized blockchain-based services. Although it was developed by a private entity, the OmiseGo network is fully decentralized and open source.

The OmiseGo network being a decentralized application (dApp) based on Ethereum, it uses smart contracts to allow fast, secure payments without trusted third parties.

Based on Ethereum, the OMG , the native OmiseGo token, is an ERC-20  token.

OmiseGo Network

The OmiseGo Network is the flagship product of the project. This blockchain network enables instantaneous peer-to-peer transactions in real time, thus facilitating financial transactions across the world for any type of asset.

OmiseGo ensures that this network is capable of handling more than 4000 transactions per second , which would make it one of the most efficient networks in the world.

Its advantage, however, lies in the costs applicable to its use. OmiseGo specifies on its website that its network is around 10 times cheaper than Ethereum’s.

Companies can create and connect their applications (a wallet, a service or a product) on the public OmiseGO blockchain.

Once the applications are connected to the network, companies can interact and perform transactions in real time in complete security.

OmiseGO eWallet Suite

The OmiseGO eWallet is an open-source and fully customizable electronic wallet to scan and store all types of goods.

This solution is entirely designed so that anyone can create their own wallet. For example, it is possible to create a wallet to store loyalty points for business customers, cryptocurrencies, fiat currencies, and any other asset.

Although a wallet created with this solution can be stand-alone, developers can link it to the OmiseGO network . Thus, a company can rely on the infrastructure of the blockchain for carrying out its transactions.

Even if this product turns out to be interesting, it seems that at the time of this writing, that it is no longer truly updated by the team. We notice that on GitHub, the last code update of the project dates back to October 11, 2019 .

Plasma

Plasma is a second layer scalability solution for Ethereum. Created with the aim of improving the performance of the Ethereum blockchain, Plasma is a collection of smart contracts used to create a tree of side chains.

OmiseGo’s role in building this solution is significant. The team is indeed at the origin of Minimal Viable Plasma (MVP), which as its name suggests, is a variant of Plasma having the particularity of being limited to the functionalities of base of the protocol.

In testing, OmiseGo’s solution for Plasma managed to process over 1.2 million transactions with a measured peak throughput of over 2,700 transactions per second.

What is the OMG token used for?

The OMG token is used as fuel for the various products of OmiseGo.

Each time an OmiseGo smart-contract is used, a certain amount of OMG tokens is consumed. These are then redistributed to the nodes of the network which allow it to operate.

OmiseGo’s blockchain is maintained by these nodes, also called validators. Using the consensus of Proof-of-Stake (PoS), these nodes can stack their OMG tokens and lock them in a smart-contracts.

They thus receive part of the costs as a reward for their participation in the maintenance of the network.

Only 140 million OMG tokens will ever be made available to the network. There will never be any new tokens put into circulation, which contributes to making them a scarce resource.

The ICO of the OmiseGo project

The Initial Coin Offering (ICO) took place on June 23, 2017 and successfully raised $ 25 million in ETH within a matter of hours. In total, 140.2 million OMG tokens were issued during this fundraiser. The price allocated to each token for the ICO was approximately $ 0.325 .

OmiseGo distributed the OMG tokens as follows:

  • 65% of the tokens were distributed to private investors during the presale
  • 5% of the tokens were distributed through an airdrop to Ethereum investors who held at least 0.1 ETH on July 7, 2017
  • 20% of the coins were reserved to validate payments of OMG
  • 10% were allocated to the OmiseGo team

Team and partners

The OmiseGo team

According to the official LinkedIn page of OmiseGo, the team behind the project consists of 46 people , the majority of whom reside in Bangkok, Thailand.

Here are some of the most prominent leaders, founders and members of the OmiseGo project:

  • Vansa Chatikavanij : CEO of OmiseGo. At the same time, she is the co-founder and director of SKYVIV, a company specializing in imaging using drones. Vansa also worked for 5 years for the World Bank.
  • Stephen McNamara : director of operations. 6 years of experience in blockchain solutions for businesses. He also served as Chief Technology Officer at Visa.
  • Kasima Tharnpipitchai : chief technology officer . Formerly senior software engineer at Github.
  • Gerhard Wagner : security engineer. He previously held the same position at ConsenSys, a company specializing in the development of solutions around Ethereum
  • Ino Murko : blockchain developer. 9 years of experience in programming, he also made a stint at ConsenSys.

Part of the OmiseGo team – Source: OmiseGo” About “page

Partners

OmiseGo has entered into numerous collaborations since the launch of its services, but very little information is available on their continuity since the initial announcement.

Here is the list of known partnerships to date:

  • Shinhan Bank , South Korea’s largest bank
  • Nomura , a Japanese finance giant that has invested in OmiseGo
  • Mass Vehicle Ledger (MVL) , a company developing a mobility ecosystem for vehicles using the blockchain
  • Ethereum Community Fund with which OmiseGo is investing in other blockchain startups
  • Krungsri Finnovate , corporate venture capital that aims to help Fintech startups grow
  • Hydro Labs , a company that develops payment and security solutions related to identity using the ERC-148 standard
  • Quantstamp , a startup offering security audits of blockchain solutions
  • AlgoZ , a company specializing in the development of advanced liquidity solutions for exchanges

 

Strengths

  • The OMG token is available on the largest exchanges and its market has significant liquidity
  • OmiseGo products are already used by organizations with high technological requirements such as banks
  • The team is well organized and has already proven itself in the past with other companies
  • Efforts are made to conquer East Asia and more particularly the Korean and Japanese markets
  • The OMG token managed to survive the post-bull run of 2017. Although its capitalization fell drastically, the cryptocurrency keeps its place in the top 50

Weaknesses

  • Although the project is carried by the payment processor Omise, OmiseGo and the OMG do not benefit from the partnerships entered into by their parent company
  • The use cases of the OMG are not really impacting compared to other projects of the same type
  • The activity of the project seems to be slowing down since the explosion of the cryptocurrency sector in late 2017
  • OmiseGo initially focusing on businesses and not individuals, its large-scale adoption is more complex

How to buy OmiseGO (OMG)?

With its high capitalization which places it among the top 50 of cryptocurrencies, the OMG is available on most cryptocurrency exchanges. Including Binance , Coinbase , Huobi, OKEx, Bitcoin.com, HitBTC, Bitfinex and Kraken.

Thanks to the high liquidity of its markets, there are many solutions for obtaining OMG tokens, but the best option due to its low fees is undoubtedly Binance.

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Explanations for buying OMGs on Binance

      1. Register on Binance
      2. You will receive a email and will need to click on a link to verifyifier your account
      3. Deposit money on the platform (fiat or crypto)
      4. Click on the menu Market and find the pair BTC / OMG
      5. All you have to do is buy some for the amount of your choice
      6. Congratulations! You are now in possession of OMG tokens

How to store OMG tokens?

Although the OMG is available on major exchanges, the safest way to store OMG tokens is to use a hardware wallet .

The OMG being an ERC-20 token, it will also be possible to store it with all the wallets supporting the Ethereum blockchain. Thus, storage is possible on the web wallets like MetaMask and MyEtherWallet .

Ratings and opinions on OmiseGO (OMG)

The link between OmiseGo and its parent company is not really effective, the interest of the network of Omise Go seems low for the moment. Although the OMG is today in the top 50 cryptos with the highest capitalization, its use cases remain very small.

Compared to other blockchains offering a similar service, such as Stellar and Cardano , OmiseGo is currently technically behind . Regarding its partnerships with companies, the Omise team does not really communicate if they are still relevant.

However, the industry that the OmiseGo team is tackling is constantly expanding. More and more solutions using digital payments are emerging across the world and especially in Southeast Asia, where the project is hosted.

With the support of the founders of Ethereum and many investors, OmiseGo could surprise us. However, the success of its products relies on their adoption by companies , a component that has not yet really seen much success.

 

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