Have you heard about OMG Crypto? For a cryptocurrency, success is a double-edged sword. The more users join a network like Bitcoin or Ethereum, the harder it is for the cryptocurrency to grow. Like traffic in a city, every user is another car clogging up the arteries of the transport system. An increase in users leads to network congestion. Enter OMG Cryptocurrency Network.
Ethereum enthusiasts will likely be following the rise of this platform. Previously known as “OmiseGo,” OMG Network is not so much a cryptocurrency as a pillar to Ethereum. It is described as a scalability solution designed for the Ethereum blockchain. The promising potential of this technology has led to many eyes on an OMG Network investment. Is it worth your while?
What is OMG Crypto Network?
This network was designed as a solution for Ethereum. Thai developer Vansa Chatikavanij realized that Ethereum could never fully succeed until it resolved its issues with scalability. He launched what was then OmiseGo in 2017 as a way to transfer Ethereum tokens (ETH and ERC20).
Omisego rebranded itself as “OMG Network” in 2020. It was recently acquired by Genesis Block Ventures, a venture capitalist firm based in Hong Kong. At the helm of the OMG Network the Stanford elite can be found, including one of the Stanford Alumni Association for Entrepreneurs’ co-Presidents (Alan Chiu).
Layer-2 Scaling Solution In Detail
The project describes itself as enabling “financial inclusion and interoperability through [our] public, decentralized networks.” The idea behind the project was to allow a faster and cheaper Ethereum. Layer-2 solutions work by moving transactions off-chain to help scale assets. Essentially, OMG Network is a second layer to Ethereum – a carpooling system to get traffic off the road.
Individual developers and businesses need no longer be wary of building on the Ethereum blockchain. Their projects could scale without a negative impact on speed or a significant carbon footprint. Through an extra layer of network architecture, OMG Network essentially protects digital assets on Ethereum. OMG Network could cut Ethereum’s electricity output by a staggering 90% and reduce fees by two-thirds – “omg,” indeed!
How Does It Work?
The OMG Network uses an innovative scaling technique known as “MoreViable Plasma” (MVP), which bundles several transactions and moves them off-chain. These transactions can then be approved as a single batch. The potential is incredible: OMG Network could allow Ethereum to up its number of transactions per second (tps) from 10-40 to several thousand.
There are two main aspects to the OMG Network:
- Omg Plasma
- OMGX Rollup
This is a scaling solution for Ethereum, whereby smart contracts can be moved onto side chains or “child chains.” Plasma allows a cryptocurrency like Ethereum to offer near-instant transactions with nominal fees. David Knott, a research scientist at OMG Network, talks about the “frictionless transactions” that the plasma bandwidth will enable, circumventing the higher network fees on Ethereum. The team has called plasma the “ideal construction for high throughput value transfer.”
OMGX Rollup is a scaling solution based on what is known as “optimistic rollups.” In simple terms, the OMGX Rollup is the solution to Ethereum’s costly network fees (the high “Gas” prices). The open-source platform is the joint project of the OMG and Enya teams, and operates as a layer-2 solution running on top of the Ethereum network. The platform will run on an “Optimistic Virtual Machine.” While still in the test phase, the idea is that developers could opt to move their smart contracts onto the OMGX net. Alternatively, they could build them from scratch on the new layer, taking advantage of the advanced computing capabilities.
Quasar Fast Exits
OMG Network has another exciting development in the pipeline: Quasar Fast Exits. Otherwise known as “crosschain bridging,” this mechanism allows network users to instantly move digital assets between the Ethereum, OMG Plasma, and OMGX chains. This extra feature will be rolled out for a small fee.
At the time of writing (October 2021), OMG Network is ranked #61 on the Coin Market chart, with a total market cap of $2 billion. Like most cryptocurrencies, OMG Network has had its fair share of dips and troughs, but the platform has been steadily rising through the charts of late. The scaling potential offered by OMG Network has garnered attention from crypto enthusiasts to financial investors alike.
This brings us to the (potentially!) million-dollar question: How does investing in OMG Network work?
The OMG Crypto Utility Token
The OMG Network does have its own token, also called “OMG.” As the platform is not a cryptocurrency in its own right, the OMG token cannot be used for internet payments in the same way as other tokens like Bitcoin (BTC) or Ethereum (ETH). OMG is a utility token used to pay for services on the network.
There is a total maximum supply of 140,245,399 OMG tokens, of which 140,245,398.25 are already in circulation. OMG tokens cannot be mined, so this capped supply is final. OMG Network had a particularly impressive beginning, raising $27 million in the initial coin offering (ICO). The majority of these funds were used to launch and run the network. The rest was divided between the company’s founders and those with a stake of 0.1 Ether (ETH) or more.
In less than two months following its launch, OMG Network saw an increase of a staggering 3,337% value. Since then, the OMG token has had a turbulent time in the cryptocurrency charts but continues to attract short-term traders and long-term investors alike.
How To Invest In OMG Network
If you see a long-term future in this scaling solution, there are two main ways to secure an OMG Network investment. The first is to buy the tokens outright from a cryptocurrency exchange platform or via a peer-to-peer exchange. You can either swap one cryptocurrency for another or with fiat currency using your credit card or debit card to make a deposit and purchase OMG tokens.
A trader should take note of where to store tokens. Ideally, anyone sitting on a significant cryptocurrency holding should consider moving their tokens from crypto wallets onto a “cold wallet” such as a “Ledger hardware wallet” to secure them against online cyber-attacks.
Trading OMG Tokens
The other option is to trade OMG tokens. You can trade OMG tokens against many different tokens. You may be able to trade OMG tokens through your online broker. The advantage of this route is that you have more options than simply sitting on your OMG tokens. Many brokers offer derivative trading; you could open a “contract for difference” (CFD), for example, and speculate on the price fluctuations of OMG without needing to buy the tokens themselves. Another option of CFD trading is leverage: some brokers will essentially lend you money so you can make bigger trades. Finding the right broker is vital, as the more features they offer, the better you are equipped for trading the cryptocurrency markets.
Take our platform, TradeOr, for example. Here at TradeOr, you can try investing in OMG Network through crypto pairs. We also offer trading on many other markets, including stocks, commodities, metals, and energy products. TradeOr clients are open to access leverage of up to 500:1 and can access premium features of the charting software TradingView. This program will help you incorporate indicators into your trades. Of course, in the world of trading, human instinct is as important as computer algorithms, and a platform like TradeOr brings you into a fold of fellow traders, expert insight, and a customer support team.
The future of cryptocurrency will never be sure, but OMG Network does offer a critical solution. Ethereum’s success will forever be hampered by scalability issues – unless the scaling solution promised by the OMG Network delivers on its promises. Watch this space, and keep your finger on those trading charts!