Let’s begin this article on the OMG network by answering the most crucial question of what the OMG network actually represents. In a nutshell, the OMG network is a layer-2 scaling solution for Ethereum. Its Plasma layer-2 engine executes smart contracts like Ethereum but broadcasts only completed, finished transactions to the public blockchain, saving immense amounts of processing power, costs, and time.
So, are you interested in the OMG network, but you’re not sure what the fuss is all about or where to begin? This brief guide is composed to educate you on everything you need to know about the OMG project and prepare you to jump into one of the most prosperous trading experiences available on the crypto scene.
What Is The OMG Network?
The OMG Network supports fibre cabling systems for secure transactions on a global scale. It is reliable and highly efficient, with stable speeds and cost-efficient transaction support. The OMG network data centre hosts a stable, advanced infrastructure designed carefully for crypto requirements. It overcomes barriers that may reduce Ethereum transactions’ efficiency, making it more accessible for crypto servers.
The OMG network, previously known as OmiseGo, is a layer-2, non-custodial solution specifically built for the Ethereum blockchain. However, the network runs as a single block producer, called a PoA (proof-of-authority) chain. So what the OMG network actually does is that it creates a value transfer layer on top of Ethereum that clusters together ETH transactions and validates them thanks to its speed-optimized child chain before it sends them back to the Ethereum blockchain for final confirmation.
In other words, the OMG network allows the ETH transactions to be verified in batches instead of individually, permitting users to enjoy superior speeds and drastically lower-cost transactions than when using the Ethereum blockchain directly.
How Does It Work?
As we already mentioned, the OMG network utilizes the Plasma Childchain architecture, MoreViable Plasma, which groups together off-chain transactions into a single “tree” before periodically sending a “root hash” containing the transactions to the ETH main net.
Afterward, a decentralized set of watchers observe the child train and the block producer to ensure that it precisely confirms network transactions. Then, the watchers check that the child chain conforms to the protocol and doesn’t withhold blocks, or tamper with transaction orders, ensuring the safe facilitation of assets for OMG network users.
Finally, the OMG network uses the OMG utility token as the payment method for fees on the OMG network. In addition, the token could be used for staking in the network’s proof-of-stake system, permitting users to help secure the network in return for token rewards.
First of all, the OMG network creators believe that ETH’s high cost and speed barriers will need to be efficiently overcome before mainstream people and businesses start building their cryptocurrency products and apps using the ETH network.
In that context, the OMG network’s Plasma engine will help eliminate unnecessary data in the root chain by handling smart contracts, much like in its foundation ETH. Still, it will only broadcast completed transactions to the public chain.
This can save immense processing power and memory for the ETH chain’s users, thus reducing the cost of interacting with the system’s other users. Besides, it can also speed the transactions enough to let dApps run without worrying about the eventual backlog.
The network native tokens or coins, the OMG coins, have a fixed maximum supply of 140,245,398 OMG and will never increase above this point. 65% of the coins were distributed to OMG network investors, 5% were distributed in an airdrop, and the last 30% are held by the project and team, 20 of which are locked in the OMG network reserve smart contract for funding future projects and network validation.
How Is The OMG Network Secured?
The OMG network is presently secured by a PoA (proof-of-authority) consensus mechanism. This means that a single block producer (OMG Network) controls the network, and users currently rely on its reputation to validate transactions faithfully.
The OMG network will eventually transfer to a PoS (proof-of-stake) consensus mechanism, which will permit users to delegate their tokens to respective validators. This way, by staking their tokens to validators, OMG users will be able to earn extra rewards while improving the network’s security.
As you can tell, the OMG network is poised to become a well-respected cryptocurrency that is successfully passing numerous obstacles along the way. The OMG network and its native token offer a unique value proposition in terms of governance, which many crypto enthusiasts and investors find very interesting. In the end, if we add that the OMG network is a blockchain that is constructed to host decentralized apps, you can see why the OMG token is so popular among crypto peers and is definitely worth investing in.