How does OmiseGo work

What is OmiseGO?

Next Jun Hasegawa as the founder of OmiseGO and CEO of Omise are among others Vitalik Buterin (Co-founder of Ethereum), Gawin Wood (Co-Founder of Ethereum), Joseph Poon (the makers of the Bitcoin Lightning Network) as well Julian Zawistowski (Founder of Golem) as direct founding members or advising at OmiseGO. The young startup is supported and further developed by top-class developers from the blockchain sector, which makes the ambitious goals seem quite realistic.

omisego.network website

OmiseGO achieved great popularity through the ICO (initial coin offering) that took place in June 2017. In this ICO, 140 million OMG tokens were issued for over 35 million dollars. A short time later, the value per token increased to over 7 euros - an exponential price jump of over 300%.

Omise - The company behind OmiseGO

A clear unique selling point of OmiseGO is the integration into the "parent company" Omise: a established Southeast Asian company with well over 100 employees and growing user base in almost every Southeast Asian country. Omise is one of the largest Financial service providers for people without a bank account (Around 2 billion people worldwide do not have access to a bank account).

Omise - payment provider with focus on Asia // Source: omise.co

In the near future, Omise already wants to use OmiseGO as a central payment system, making it affordable and fast for millions of people Transactions with both fiat currencies (Euros, dollars, etc.) as well as cryptocurrencies. This would give people who do not currently have access to banking services a far more efficient account than local financial institutions are currently able to offer. Omise is characterized by dynamic development and numerous partnerships (including with McDonalds Thailand, Alipay and the largest credit card provider in Korea: Shinhan Card Co.). For this reason, Omise was also awarded the title “Fintech Rockstar” by Forbes magazine. The OmiseGO slogan is "unbank the banked“.

How does OmiseGO work?

OmiseGO has two basic functions: the Gateway between different blockchains and the Wallet with integrated decentralized exchange (DEX). From the combination of the two products, OmiseGO offers an efficient, decentralized wallet for various fiat currencies, crypto currencies and possibly other assets in the future. These can then be traded easily, quickly and inexpensively within the wallet. The OmiseGO Payment Gateway does it among other things. possible that you can pay with your desired currency anywhere in the world, OmiseGO leads automatically converts to the target currency by.

Fiat currencies and cryptocurrencies both find a place in the OmiseGO concept

OmiseGO currently works through the Ethereum blockchain, in the future, however, OmiseGO will be its own blockchain (Proof of Stake based). OmiseGO will also be the first project that Ethereum's planned infrastructure upgrade "plasmaPlasma is an upgrade for Ethereum, which enables significantly more transactions on the Ethereum blockchain. This means that OmiseGO could cost-effectively process millions of transactions per second in the near future.

Furthermore, OmiseGO enables numerous other functions. For example, querying the balance of your account or custody account, through to transactions between different currency areas.

OmiseGO's goals

In technical terms, OmiseGO is an Ethereum fork (fork = fork) and implements its functions as smart contracts on the Ethereum blockchain. The own OmiseGO blockchain is currently under development. On the one hand, OmiseGO wants to ensure that around two billion people worldwide without access to a bank account have this access and, on the other hand, that all fiat currencies, crypto currencies and at the same time assets can be compactly stored in a single wallet and traded inexpensively. OmiseGO is currently working on one Software development kit (SDK) for developers, which should make it possible for every platform to implement OmiseGO. This could multiply the number of potential users. The SDK should be released in 2018.

OmiseGO will be one of the first Ethereum based projects to be plasma uses and thus be able to Millions of transactions per second to process.

Source: Official Guide on omisego.network

Since the development of plasma works much faster than planned, a so-called "Hardspoon" give. Vitalik Buterin described a hardspoon as follows:

"A hard spoon is a meta-protocol on top of a blockchain creating a token that inherits the blockchain’s underlying token’s balances. The idea of ​​a soft spoon would be to create two competing branches of a protocol within the same blockchain

This means that the OMG tokens are copied and replicated in another protocol on the same blockchain. For each "old" OmiseGo token, you get a "new" token for free. A spoon can be compared to a fork, only that it is a spoon amicably to split the protocol comes in two parts and both protocols on same blockchain be further developed in parallel. The plasma upgrade to solve the scaling problems of the blockchain can be used immediately.

A brief summary of OmiseGO

  • The target group are both private individuals and institutes
  • Should act as a gateway between cryptocurrencies, fiat currencies (euros, dollars, etc.) and other assets
  • Assets should be able to be traded via a decentralized exchange (DEX) without intermediaries
  • Own blockchain in work with "Proof of Stake" as a consensus mechanism and "Plasma" as a scaling solution for transactions

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