OMG Network is an innovative layer-2 scaling solution built for Ethereum. It has recently garnered significant attention because of its unique solutions and value propositions.
Similar to Ethereum, OMG Network’s Plasma engine executes smart contracts, but it only publishes finalized transactions to the public blockchain, saving energy-intensive computing power, money, and processing resources.
OMG is the protocol’s utility and governance token. The token is used to pay for transaction fees, and users can stake OMG to earn rewards.
OMG is the 106th largest cryptocurrency by market cap.
How OMG Network (OMG) Works
A layer-2 scaling solution for the Ethereum blockchain, OMG Network, originally known as OmiseGo, is an innovative, secure, and credible non-custodial solution. The OMG Network functions as a single Proof of Authority (PoA) chain or block producer.
Atop the Ethereum network, the OMG network acts as a value transfer layer that compresses Ethereum transactions, verifies them via a speed-optimized child chain, and then sends these transactions to the Ethereum blockchain again for final confirmation.
OMG Network users can benefit from far faster speeds and significantly cheaper transactions compared to utilizing Ethereum directly since the transactions can be confirmed in batches rather than individually.
Omise, a corporation that facilitates cross-border payments in Southeast Asia, is the parent company of the OMG Network.
The MoreVP blockchain model plays an integral role in the efficiency solutions provided by the OMG Network. Models that help achieve optimization in the network and were implemented by OMG Foundation: Child Chain and MoreViable Plasma.
These work collectively to group transactions off-chain into a Merkle tree prior to delivering a “root hash” that contains the transactions to the Ethereum mainnet.
Block producers are tasked with the authentication of the network, and decentralized observers observe their network contributions to the decentralized network. The observers ensure that the Child Chain and block producers are performing their responsibilities credibly and optimally.
The OMG token is utilized for payments on the network and essentially ensures the OMG network works as efficiently as possible. If you’re still wondering ”how does OMG network work?” then you can refer to the OMG whitepaper for a more in-depth description of the protocol and its functionality.
What Is OMG Network (OMG) Used For?
The main use case for the OMG Network scaling system is the general fact that Ethereum is too slow and expensive to use for the average person.
OMG users benefit from the proof of stake consensus algorithm, the functionality of the plasma chain, and the OMG platform because it saves them time and money. Most notably, the OMG network is actively working on cross-chain functionality – the transaction throughput of the OMG network is already capable of processing 2,000 transactions per second.
The adoption of the OMG network has grown rapidly because the Ethereum network is the most utilized blockchain network, and users have been searching for a solution that saves them money on transaction fees because gas fees have been a major deterrent for most users trying to make use of the Ethereum network.
OMG Network’s Plasma eliminates unnecessary data on the root chain, which inevitably optimizes the network’s functionality and affordability without compromising security.
Additionally, swing and arbitrage traders aim to capitalize on price fluctuations experienced by a token. OMG tokens experience volatile fluctuations like most other digital assets, and experienced traders try to make a profit on these fluctuations.
The OMG network price is irrelevant to these types of traders because they only aim to sell OMG network tokens when it’s profitable to do so.
Where To Buy OMG Network (OMG)
OMG Network (OMG) is among the most popularly traded cryptocurrencies on the market. The blockchain project recently garnered an immense amount of attention because it provides Ethereum network users with an efficient and affordable solution to astronomically high gas fees.
OMG tokens are commonly available and frequently traded on most centralized crypto exchanges. However, before you’re able to purchase OMG, you’ll need to deposit fiat money onto an exchange, and sequentially OMG tokens will be credited to your OMG digital wallet on the exchange.
The crypto exchanges below are the safest place where you can buy, sell and store BTG tokens.
Five of the most popular crypto exchanges that US citizens use are:
All of the above exchanges allow users to buy, sell, transfer and store OMG tokens in a digital wallet on the exchange. In addition, you can use your debit or credit card to purchase OMG tokens on centralized exchanges.
If you intend on transferring your OMG tokens to a digital wallet or hardware wallet – you can choose to send them to a wallet such as Trezor.
How long has OMG Network (OMG) existed?
The OMG Network was developed by a subsidiary of the Omise group called Omise Go – the OMG Network was formerly known as OmiseGo. The Omise group was established in 2013, but the OMG Network was launched in 2017.
The project has garnered more attention in recent years because the Ethereum network has become virtually unusable at times due to congestion that leads to exponentially high gas fees.
What’s controversial about OMG Network (OMG)?
Before investing in any cryptocurrency or blockchain project, you need to learn as much as possible – research the fundamentals of crypto and blockchain before purchasing any crypto. Learn about what different blockchains are, how they differ, how they function, and what problems they solve.
The more you learn about the crypto space, the more confident you’ll be when you invest. A large portion of retail investors enter a trade or invest in various cryptocurrencies without doing diligent research.
Let’s take a look at the top controversy surrounding OMG Network (OMG)
- Manipulated Markets / Insider Trading – The crypto space can be extremely controversial, and there are many occasions where projects are accused of insider trading. This taints the image of multiple personnel, key figures, and projects and leaves investors feeling like they’ve been scammed. Insider trading has become a real issue that’s resulted in many losing money while insiders profit off their downfalls.
- One of the most noticeable controversies surrounding the OMG network was when the token was listed on Coinbase. Tokens that are listed typically see price appreciation because the news is positive, but in the case of the OMG Network, key figures were called out for insider trading. This is what we call a pump-and-dump.
How many OMG Network (OMG) tokens are there?
At the time of writing, OMG has a circulating supply of 140,245,398.25 OMG (100% of the total supply).
The total supply of OMG is 140,245,399.
The max supply of OMG is 140,245,399.
Can OMG Network (OMG) be mined?
OMG is not a mineable cryptocurrency. The OMG Network utilizes a proof of stake mechanism, and this means that unlike most mineable coins (proof-of-work), the OMG coin is unmineable.
However, individuals can earn yields on their tokens by participating in DeFi products such as staking, farming, and liquidity provision on various decentralized platforms.
Some centralized exchanges also offer users rewards for staking OMG tokens.
What is the market cap of OMG Network (OMG)?
The market cap of OMG Network (OMG) is:
OMG Network (OMG) market cap = total amount of coins in circulation x current market price of OMG
OMG Network (OMG) Market Cap = 140,245,398.25 OMG x $1.88 = $263 million (106th largest market cap)
The market cap fluctuates according to circulating supply and market price.
Biggest Competitors Of OMG Network (OMG)
The layer-2 scaling solutions sector is competitive, but OMG Network has already cemented a spot as a top competitor in the space.
Some of OMG Networks’s competitors are:
- Immutable X
What are the Future Plans for OMG Network (OMG)?
OMG network has announced it will continue to actively build more utility for its native token, work on user experience and drive user adoption by providing users with secure and optimized scaling solutions.
Pros and Cons of OMG Network (OMG)
- Leading Layer-2 Protocol – The OMG Network is among the largest scaling solutions on the market. The project has garnered an immense amount of retail adoption recently and the project continues to provide users with an efficient product that solves issues that have long plagued Ethereum Network users.
- Real Use Case – The OMG Network is a blockchain product that truly meets the demands of users. There is a definite need for a scaling solution on Ethereum, and OMG Network has fulfilled this need. The protocol provides users with a more affordable and less time-intensive solution – the Ethereum network has become incredibly congested and expensive; this is why OMG Network has become so popular in recent years.
- Transaction Capacity – The OMG Network is capable of processing up to 2,000 transactions per second. This is much higher than the Ethereum Network, which can only process around 14 transactions per second.
- Competition – There are several blockchain scaling solutions that have already established large communities and have amassed retail and institutional investments, as well as significant partnerships. The OMG Network is going to need to remain as innovative and optimized as possible to retain its position as a top scaling solution.