Despite how much most of us take financial services and banking for granted, there are billions of people around the world who are unbanked or underbanked. Because of this, the topic of financial inclusion is an important one. One blockchain-based platform that is looking to be the solution to this issue is OmiseGO. This post will look at what OmiseGO is, how it works, why it’s important and so much more.
What is OmiseGO?
OmiseGO is an eWallet, smart contract system and token that is all about providing a decentralized solution for the unbanked. OmiseGO (which is also known as OMG) is a subsidiary of Omise, which is an online payment gateway service that operates in Asia. Despite this, OMG is a separately operated extension and is actually owned by OMG users and token holders.
Now that’s out of the way, let’s take a closer look at what OmiseGO is and what they are trying to do. OMG has the ultimate goal of being a high-value exchange and settlement platform. It is a scaling solution for finance on Ethereum, which will enable transparent peer-to-peer transactions in real time. The decentralized network will allow for everyone, no matter where they are from, to participate within the platform. They will also allow for interchangeability between many payment gateways out there today such as Paypal, ACH and others.
People will be able to use the OMG network access and manage a variety of different digital assets, which are all kept securely on the blockchain. OMG will also feature a decentralized exchange mechanism to provide interoperability between currencies. It will be scalable and secure, as well. As if that wasn’t enough, OMG also features a white-label SDK (software development kit) so that people can build an app easily and quickly.
As you can see, OMG is a very feature-packed platform with a variety of potential uses and applications, and is hoping to be the next-gen decentralized economy and financial network. If you want to learn more about each feature in detail or get more information about the technology or functionality of OMG, be sure to check out their official guide or their whitepaper.
The Benefits of OmiseGO
With the many features and options available within OmiseGO, you can be certain that they offer a ton of benefits to potential users. In particular, there are five main benefits that OMG has decided to highlight on their website.
Because of the open source SDK we mentioned earlier, digital wallet providers can connect to the OMG network and enable users to trade and transact any digital currency. However, this isn’t only limited to crypto assets, as fiat currency can also be included in transactions through OMG.
Because OMG has bonded to the Ethereum blockchain, you can rest assured they are incredibly secure. This bond not only creates secure transaction validation, but also secure token custody.
By using the Plasma architecture (which is among the leading scalability solutions for Ethereum), OMG claims to be able to have unlimited scalability and a transaction speed that is unmatched in the industry. Of course, we will need to see this speed and scalability in action on a larger scale.
Various financial applications will be able to work along with one another via the OMG network. Users will be able to trade assets to and from different blockchains, which makes things more efficient. This interoperability opens up the world of blockchain in a way we don’t see very often, with a variety of protocols interacting with each other.
No one central company or authority owns the OMG network and as a result, it is completely decentralized. It is controlled completely by users and validators of the network. Token holders and users can stake in order to validate transactions and earn a reward. This decentralized nature is great as it doesn’t allow an individual or entity to manipulate the network at all.
The OMG Token
During their ICO, OMG raised $25 million and released their coin, which is also called OMG. The OMG token is primarily used as a staking token. When you hold OMG tokens, you have the right to take an active role in validating the transactions within the platform on the Proof of Stake network. You will use your own tokens as a security deposit, and you will receive a fee for your work. Of course, the token can also be used in a speculative manner like any other investment, where you can buy, sell and trade it. However, as the platform and network evolve over time, so will the role of the OMG token.
The Team at OmiseGO
The team at OMG is led by CEO and founder Jun Hasegawa and COO and co-founder Donnie Harinsut. Hasegawa has founded many tech companies and has been involved in the tech and design industry for well over a decade. Harinsut has well over a decade of experience in management and technology, as well. The rest of the team is made up of those who specialize in engineering, software, design, management, development and finance.
The team is impressive, but the advisors take things to a whole other level. OMG’s list of advisors is a very impressive one and features the likes of Vitalik Buterin (the founder of Ethereum), Joseph Poon (the co-author of the Lightning Network) and many others who are considered experts in the space.
With advisors like this, you can see why so many people have faith in OMG and why it is one of the top 20 coins in terms of market capitalization.
While the team and their advisors are impressive, so are the partnerships that OMG has been able to make. They have partnered with the likes of McDonald’s, the Thai government, SBI, SMBC, SMDV and more.
Potential Issues Facing OmiseGO
While this all sounds great, no platform is perfect, especially one that uses blockchain technology, as the technology itself still has many things that need to be fixed or addressed. One of the biggest issues with blockchain technology vs. traditional methods is the number of transactions that the network can handle, without taking a ton of time or costing an arm and a leg.
While the usage of the Plasma blockchain should help, only time will tell if networks and platforms like OMG can scale enough to make them viable in a widespread manner. Another potential issue that OmiseGO might face is that they are trying to do too much, too soon. Their overall business model and what they are can be somewhat confusing as they are trying to do so much in terms of revolutionizing the industry.
In conclusion, while they are relatively young, OmiseGO is a very exciting and ambitious project. OMG, paired with the suite of financial services offered by Omise, is poised to change the payment processing industry. That, along with their decentralized exchange, digital asset gateway and SDK, makes OMG a token and platform to keep an eye on.