OMG Network, originally known as OmiseGo, is a non-custodial layer-2 scaling solution for the Ethereum blockchain. The OMG Network operates as a Proof of Authority (PoA) chain, which is a single block producer. On top of Ethereum, OMG provides a value transfer layer that bundles Ethereum transactions and verifies them through a speed-optimized child chain before sending them back to the Ethereum blockchain for confirmation. This allows transactions to be confirmed in batches rather than individually, allowing users to experience far faster and lower-cost transactions than when using Ethereum directly. The OMG Network is managed by Omise, a firm that facilitates cross-border payments in Southeast Asia.

History

The OMG Network now employs more than 50 people in various places across the world. Vansa Chatikavanij is the current CEO, and OMG is a subsidiary of SYNQA, a Thailand-based fintech corporation formerly known as Omise Holdings.

The OMG platform is funded by 25 million USD in money raised by creators Jun Hasegawa and Donnie Harinsut through the sale of OMG coins during their 2017 initial coin offering (ICO). SYNQA, the parent company of OMG Network, obtained an additional 80 million USD in Series C funding, which was sponsored by numerous significant investment companies, including Toyota Financial Services Corporation and Sumitomo Mitsui Banking Corporation.

How does it work

The OMG Network serves as a decentralized exchange of value, facilitating transactions across blockchains in the absence of a trusted gateway token. Cross-chain capability is a critical feature in emerging blockchains for enhancing liquidity and user experience. Using the OMG Network relieves competitive pressure and allows purpose-built blockchains to concentrate on developing services rather than competition-related expenditures like as marketing.

MoreViable Plasma, the Plasma Childchain architecture used by OMG Network, operates by combining transactions off-chain into a merkle tree before delivering a "root hash" comprising the transactions to the Ethereum mainnet on a regular basis. A decentralized group of watchers monitors the child chain and the block producer to verify that network transactions are correctly confirmed. Watchers ensure that the child chain follows the protocol and does not withhold blocks or interfere with transaction sequencing, guaranteeing the secure transfer of assets for OMG users.

The OMG utility token is one of the payment options for OMG Network costs, and it will be used for staking in OMG's Proof-of-Stake system, allowing users to help protect the network in exchange for incentives.

Total supply and circulation

OMG maximum quantity of network tokens is set at 140,245,398 OMG coins.