OmiseGO was born in 2017, as an extension of Omise to leverage the blockchain technology to create a system which solely aims to revolutionize the way people keep and trade their financial and valuable assets.
What is OmiseGo?
OmiseGO will be a Proof of Stake blockchain specialized for the decentralized exchange of digital assets. These assets can be cryptocurrencies sourced directly from other blockchains or assets issued by OmiseGO users. OmiseGo consists of a liquidity engine which will find the lowest cost path between the asset the user has and wants to trade for. It will provide multiple blockchain interoperability by connecting blockchains through their software solution.
Shortcomings of the Traditional Exchange Model
Security – The users safety is compromised if a hacker succeeds in breaking the database’s security.
Privacy – A website contains users sensitive information on its servers and they can sell it to third parties. The information can be used for direct custom marketing, industrial spying or for personal use.
Need of Trust – The trust system is based on the complete integrity of the service provider. Users trusts that no hacker is part of the company’s team and has access to his data. Moreover, the users doesn’t have control over their own data. The control of the data rests with a trusted third party.
Problems addressed by OmiseGO
1.Solutions for the Unbanked
More than 2 billion people worldwide are unbanked. They do not have an access to a bank account and are not aware of how to use it in their daily lives. In case they want to transfer the money they resort to costly solutions. On the other hand, Asia especially shows an exceptional internet penetration rate: many unbanked people, but more and more connected people.
OmiseGO seeks to provide unbanked people with an easy and open solution that allows to them own, send, receive money on one platform. They will be able to exchange currencies at a minimal cost.
2. Facilitating Cross-Network Transfers
The financial world is rife with closed networks. Although it is possible to send money inside a network, but it is difficult or costly to send it across to another network. OmiseGO wants to establish a platform which will facilitate easy cross transfer among cryptocurrencies. As a result, such a platform will increase the use of cryptocurrencies in daily life.
OmiseGo’s Plan of Action
OmiseGO is building its own network, the OmiseGO blockchain. It will be an open and permissionless network. In order to be able to send and receive any currency or asset on the network, the OmiseGO blockchain will include a decentralized exchange (DEX) allowing values to be traded in real-time for other values.
The OmiseGO blockchain will include a DEX which allows for value to be traded in real-time for other values. Thus Electronic Payment Providers can allow the customers to trade not only inside the EPP’s own network but also cross-network. The OmiseGO blockchain will act as a hub to which other blockchains can connect. OmiseGO will allow for eWallet interchange and the OmiseGO blockchain will keep a ledger of every eWallet service’s present balance.
OmiseGO blockchain will additionally include a decentralized order book and trading engine. Direct crosses between wallets may be large in volume, thus it is expected that EPPs will hold a certain liquidity pool. For higher amount transfers some ETH will be bonded into a smart contract on the OmiseGO chain. This will allow any fiat or cryptocurrency to be traded with ETH.
Note: Using ETH as a reference is not compulsory for trading, but it will be more efficient and faster to use cryptocurrencies as pairs ‘reference currencies’.
OmiseGO Wallet
The white label wallet SDK built by OmiseGo will be a framework for developers and companies to develop their own customer channels. The developers can use SDK
to avoid the process of building his own blockchain and understanding the complex blockchain model.
The wallet will be free to use for anyone and every transaction which happens through applications developed with the SDK will automatically take place on the OmiseGO blockchain.
OmiseGo’s Proof of Stake System
Every transaction happening on the OmiseGO blockchain will generate a small fee. If there are a sufficient number of transactions the fess can turn into a significant amount. The staked tokens are burnt if a user makes bad use of network.
Interaction between OmiseGo and Ethereum
Joseph Poon and Vitalik Buterin, the key advisors of the OmiseGo project developed Plasma. This allows for extreme scalability and billions of state updates per second. It will be very easy to handle high throughput, making the network’s efficiency comparable to the Visa’s network efficiency.
The new technology is still in the development phase. Their Plasma MVP has been launched and it is expected that their fully tested POS blockchain with the integrated DEX will be available by Q1 2019.
