OmiseGo ($OMG) was started by Juan Hasegawa and Dinnie Harinsut the founder and co-founder of South East Asian parent company Omise with the promise to “Unbank the Banked”.

Before OmiseGO was launched, the parent company Omise had already produced a payment gateway, not unlike Stripe and Paypal. When OmiseGo came to the spotlight they caused quite a bit of interest especially among some big players with McDonalds and Alipay set to become among the first to accept $OMG payments.

They also have a pretty impressive advisory board including Vitalik Buterin and Gavin Wood; the co-founders of Ethereum. On top of that, they have been endorsed by the Bank of Thailand and the Thai Ministry of Finance.

They are an ERC-20 token built on the Ethereum blockchain and are working on some pretty exciting stuff in the financial sector;

OmiseGO is building a decentralised exchange that will be able to transfer funds internationally between many different blockchains, in different currencies, instantly, with no need for a gateway token.

  • All you will need to do is download the free wallet to use the system.

The idea is that all the way from big businesses down to one single customer, all will be able to transact between one another seamlessly and instantly, changing the way we view international, financial-connection and payments forever.

 

 

TITLE/TICKER : OmiseGO / $OMG

COMPANY ORIGIN : Thailand

PLATFORM : ERC-20

CONSENSUS : PoW

FOUNDERS/CEO : Jun Hasegawa, Donnie Harinsut

PURPOSE : Decentralized Payments

POINT OF DIFFERENCE : Direct Cross-Blockchain transactions

MAJOR PARTNERS : SBI Investment, SMDV, SMBC, Golden Gate Ventures, Ascend Capital, East Ventures, Krungsri Finnovate, and Global Brain.

WEBSITE : OmiseGo Website

WORKING PRODUCT : eWallet/currency yes, DEX no

CURRENT PRICE ACTION:

 

What problems is OMG looking to solve?

 

Currently, with major payment gateways like FedWire, CHIPS, SWIFT, consumer card payment networks, NSCC/DTCC, OCC, and ACH, there is little to no easy inter-system cooperation, one-sided system rights and their benefits are generally conceded to facilitate this and those costs are filtered down to the USER.

Here lies one of the many holes in centralised finance management.

OMG believe that since their;

 

Operations are not only transparent, but also the mechanisms are guaranteed to not change without significant effort, parties are more willing to coordinate” on a system that can join many different financial solutions together as if they were the same – OmiseGO whitepaper

 

OmiseGo (OMG) Main Objectives and Use-cases

  • OmiseGO is creating a decentralised exchange with the goal of providing an “asset agnostic” or direct cross-blockchain transactions, a clearinghouse messaging network, staking/collateral-asset backed blockchain gateway and liquidity mechanism. This cross-chain transaction service is a very rare feature that allows for the direct exchange of funds between multiple, different blockchains without the need of a trusted gateway token. A service unheard of in the central banking world which is going to rapidly change the face of international fund management.

 

  • The creation of the OMG white label open-source digital wallet software development kit or (SDK). It will be based on a free model and give businesses the ability to connect to the OMG network and use their online asset exchange.

 

The team is creating a fully decentralised peer to peer “asset agnostic” which will transact instantly with any token on the ERC-20 network using their white label eWallet seamlessly.

 

How does OMG work?

 

For OmiseGO to reach their goals and user adoption, there will be a much larger volume of activity than what the Ethereum network currently can provide. The way solve this is by bonding trading activity to the Ethereum public chain and have the contract execution point be provided by the OMG chain- (using the Plasma framework).

OMG are creating a blockchain that will be able to share data and communicate into other blockchains which will make it possible to instantly trade a variety of tokens that use different blockchains, without the need for a gateway token to facilitate. The OMG chain will log and verify all transactions made and submit those transactions to the Ethereum blockchain (which OMG is built on).

When the blockchain is up and running OMG will be a staking based token using PoS systems. They are one of the first to also implement the use of ‘Plasma’, Ethereum’s latest solution for scalability.

 

Plasma

Plasma is simply put as – a design framework for multiple different blockchains made to serve specific functions built on top of the root blockchain (Ethereum), that facilitate transactions within themselves and send blocks of information to the root chain so as to keep the load as minimal on the root chain with the plasma chains doing the bulk of the work. The only time the root chain must do work on top of handling deposits and exits is if there is a dispute that needs settling, in which case the root chain will receive only enough information to process and confirm or deny fraudulent exits. 

Plasma was designed for enterprise scalability and therefore can handle far larger data sets than the Ethereum main-net. Aiming at 1 million+ transactions per second (TPS), much faster than Ethereums main-net – 15 TPS, Ripples – 1500 TPS, and even Visas – 50,000 TPS.

 

There are 4 factions to the plasma system;

  1. Client – Operates the child chain, checks for false transactions and exits as soon as one is detected.
  2. Child chain – Acts as the viewer to Ethereum for deposits and continues to function no matter the network state.
  3. Root chain – Bonds the Ethereum – Child chains via smart contract. Manages withdrawals and deposits for the child chain with minimum data usage.
  4. Parent chain – Secures the child chain much like the Root Chain

 

Staking/Masternode rewards

 

At this stage there is no sign of masternodes, a basic version of how OMG’s staking system works is;

  • Send the OMG tokens you wish to stake from your wallet to the staking contract, which is on the root chain
  • The staked tokens are then frozen on the root chain
  • A validator node will connect with that contract address and the network will interact (slashing from or sending rewards) dependant on the validators behavior

 

When you withdraw that contract and get your tokens back they will be sent back to the address they came from so ALWAYS MAKE SURE TO SEND FROM A WALLET ADDRESS YOU WILL KEEP (cold storage or exchange address wallet etc), not from a third party wallet! Once the withdraw is made it cannot be reversed so this is crucial.

Token distribution and ownership

 

 

A point of some conversation has been the token distribution and percentage holdings the top 100 users have. 65% of all OMG tokens are held by the top 100 accounts a good portion of which are the OmiseGO team and investors – excluding those, around 25% of the total supply is still held by a small group.

 

 Competitors

 

At the moment the bulk of international transactions are made possible by outdated, expensive systems including but not limited to; FedWire, CHIPS, SWIFT, Automated Clearing House (ACH), Transfer Wise, HiFX and more.

 

In the crypto sector some competitors trying to do similar things are;

 

Request Network (REQ– decentralized payment system. Threat level low due to low market cap

Ripple (XRP): the centralised mammoth. They are a definite threat but in a different way as they are too a payment system, however, they are designed for financial institutions to benefit the most.

Stellar (XLM): Decentralised payment system also. High threat level as they are currently number 6 with a market cap of just under 5 billion USD

 

Team

 

OmiseGO has a large, skilled team and early on donated $100,000 to Ethereums Devgrants program. An initiative designed to help new ETH projects in developing code bases and building communities. From their enthusiasm to ETH based projects they have gained a great team of advisors to join them with the likes of Vitalik, Kevin wood and Joseph Phoon, all big boys of ETH/plasma plus many more.

 

Advisors

 

Roadmap

 

OMG has set-out a very innovative and ambitious roadmap, we’ll be watching to see if the team can meet these expectations and goals.

 

 

Where can you purchase OMG tokens?

 

You are able to purchase $OMG on Easy Crypto (NZ Residents) or via top volume, reputable exchanges such as Binance.

 

How to protect & store your OMG tokens?

 

We recommend downloading an approved wallet from the official OmiseGO website once it is released and in the approved wallet list otherwise, we always recommend using a  Ledger Nano S  or Trezor – where your private keys are never exposed online. Please refer to the Hardware wallet websites for an accepted, proven list of projects before sending your assets.

 

Outlook for OMG?

 

With OmiseGO being close to the OMG Plasma release (Q4 2018), their huge board of advisors and plans to “unbank the Banked” there is sure to be some interesting things unfold before the end of the year. If they succeed in being one of the first projects to operate a functioning, large-scale, decentralised payment network – their parent company Omise has a very large existing user base in the payment sector and it would not be difficult to fathom the transfer of those customers over to the new network with a little incentive. Very exciting times indeed lay ahead and we will be keeping a close eye on this project.

 

Disclaimer :  None of our Analysts are holding OmiseGO ($OMG) at the time of writing this article. All content is research, opinions and personal view points from our Analysts. This is not financial advice and should not be treated as such. If you have any queries please contact [email protected]

 

References

 

Price action Coinmarketcap widget

Quote – OmiseGO whitepaper

Token distribution charts etherscan.io

Team & advisor photos Omisego website

 

Summary & Score

OmiseGO ($OMG)

8.1

Vision

9.5/10

Team

8.5/10

Working Product

5.0/10

Partners/Investors

8.5/10

Legal/Compliant

9.0/10

Pros

  • Community support
  • Strong Team
  • Early mover advantage
  • Instant transactions
  • Decentralised

Cons

  • Product not complete
  • Fierce competition

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