Updated: Dec 20, 2019
OmiseGo is a proof-of-stake (PoS) platform that is Ethereum based and strives to create an open, public financial system by decentralizing payment networks. OMG is an ERC-20 token used by OmiseGO that powers its PoS consensus. The platform is pursuing some extremely dynamic projects, including the notable and unique decentralized exchange (DEX) called ODEX, as well as developing the first Plasma implementation for Ethereum.
This guide will talk about what OmiseGO is designed for, the creators, how it works, and various uses and applications.
What Is OmiseGO Designed For?
The goal of OmiseGO is to resolve the fundamental problem of coordination among financial institutions, payment processors, and gateways. The platform has adopted the catchphrase “Unbank the Banked”, which represents its intention of creating a decentralized, open, and interoperable financial network, where banks and other intermediaries cease to exist in a dominant capacity.
OmiseGO’s vision is to create a framework for a new and unique decentralized payment system. OMG is intended to act as a real-time, peer-to-peer financial transaction bridge, which includes but does not limit itself to remittances, payments, B2B commerce, payroll deposit, loyalty program activity, supply chain, and asset management among others. All of these processes go through in a completely decentralized way with minimal cost.
Who Is the Team Behind OmiseGO?
OmiseGO was launched through an ICO, in 2017, by its Thai founding company Omise. OmiseGO is created as an independent extension by Omise, which itself was founded in 2013.
It is the existing relationships that Omise has in the financial payments industry, allowing OmiseGO to be accepted in the mainstream, which most cryptocurrencies do not have access to.
Omise already powers payments for various international companies, such as McDonald’s. It has also partnered with the likes of Golden Gate Ventures and SBI Investment.
How Does OmiseGO Work?
OmiseGO is built on the same centralized networking principles as FedWire, SWIFT, ACH, and CHIPS that allows the systems to serve different functions, and operate various mechanisms. OmiseGO’s platform redefines the current system, with the help of a highly scalable DEX (ODEX) that serves as the basic infrastructure, enabling multiple markets to plug and interact with each other.
The underlying technology has four main components:
● ODEX Decentralized Exchange Protocol
● Proof of Stake Consensus
● Plasma Network
● White-Label Wallet Software SDK
OmiseGo works on both complex Smart Contract technology, as well as simple peer to peer transactions. OMG coin is used as fuel in the OmiseGO network, which employs the transactional processes used by Ethereum.
What are Current and Future Applications of OmiseGO?
OMG token is a white-label eWallet, which means that it can be used by multiple brands. This allows tokens to be transferred from one blockchain to another, without having to go through a traditional exchange.
OmiseGO also allows funds to be transferred in real-time between different blockchains and traditional payment providers, such as SWIFT and VISA. The platform is created to be used by real people in the business world, in a manner that is both quick and easy.
OmiseGO has partnered with some notable names, such as Ascend Capital. This only goes to show that financial organizations have complete confidence in the platform.
The crypto platform has also received large investments from Japan’s largest banks – SMBC and Bank of Ayudhya.
When these partnerships and investments reach their potential, OmiseGO will become more than an important cryptocurrency. It will be transformed into a global institution.
Few real-world applications include:
● Burger King Thailand (Minor International PCL)
Burger King Thailand launched its eWallet in 2018 using the OmiseGO eWallet Suite, which provides the back-end for Minor Group’s Food and Beverage (F&B) loyalty program.
Shinhancard and OmiseGO have come together to develop a proof-of-concept (POC) cross border and loyalty point program, which is built on top of OmiseGO’s ‘enterprise interface’ tool.
● Hoard Exchange
Plasma Dog is Hoard's first live proof-of-concept utilizing Plasma MVP and built on the OmiseGO network. It helps demonstrate the robustness of the OmiseGO network.
OmiseGo was the first Ethereum-based project to cross the $1 billion mark in value. There are some very ambitious projects being tackled by this tech company. However, the features of these projects have left many of the original supporters frustrated with the developer’s sluggishness and slow pace.
That being said, OMG has some unique advantages over others in the crypto space due to Omise’s valuable experience, in the payment processing sphere. However, this doesn’t mean that the crypto token is devoid of any competitors. It still has Ripple, Ox, REQ and Stellar as its main competitors.