OMG Network

What is the OMG network?

OMG is the native token of the OMG network. This Level 2 scaling solution which aims to optimize Ethereum transactions by offering faster speeds and lower fees. OMG is an ERC-20 token. It is used as utility network token. It is noteworthy that the cryptostructure of the OMG network is not decentralized, like it uses only one node to create blocks.

Over the years of its existence, the project has undergone several rebrandings. It was originally known as OmiseGo. In 2020, its name was changed to the OMG Network, and in 2021 it became the OMG Foundation. For sequence name OMG Network will be used here. You can view OMG’s most up-to-date pricing statistics above.

Who founded the OMG network?

The OMG Network was founded as OmiseGo in 2017. Vansa Chatikavaniy. Before becoming CEO of the OMG Network, she worked as an environmental researcher with a focus on water resources.

The OMG Network was designed to address some key problems faced by the Ethereum blockchain. Ethereum is one of the largest decentralized networks in the world. Thus, maintaining the blockchain required a large amount of storage space. Transaction speed is also relatively low as the network cannot handle up to 50 transactions per second.

To counter this, the OMG network was created as a Layer 2 solution to improve the network’s scalability and enable the ability to process significantly more transactions simultaneously.

The network officially launched in mid-2017. At the time, the price of OMG was around $0.50. Just a few weeks later, the value of the asset exceeded $10. His market behavior was moderately volatile Since its launch, it has experienced frequent ups and downs.

During the first year of its existence, the asset had several noticeable peaks. The highest price for OMG was recorded in January 2018, when it reached $28.35. Since then, the asset has followed general market trends. In November 2021, the month when Bitcoin nearly hit $70,000 for the first time, OMG peaked at around $20.

How does the OMG network work?

The maximum supply of the OMG Network coin is strictly limited to 140,245,398. Moreover, all of these coins have already been minted and new coins cannot be added to the protocol. So the asset actively deflationary, since its entire supply is either in circulation or burned. This is expected to have a positive impact on OMG Network’s price.

As a layer 2 solution, the OMG network fully compatible with Ethereum. Users can conduct transactions with both ETH and ERC-20 tokens. The platform uses Read moreViable plasma a scaling solution that uses sidechains to conduct off-chain batch transactions that can later be verified on-chain on Ethereum.

According to the protocol, the OMG network must be able to process thousands of transactions per second (TPS). By comparison, Ethereum can only process a few dozen transactions per second. Additionally, due to its size and popularity, Ethereum often experiences network congestion due to exceeding the TPS limit.

OMG Network is also working on reduction of transaction costs on Ethereum. According to the team, OMG’s price to cover gas fees could be reduced by as much as a third of Ethereum’s initial price.

As a scalability solution, the OMG network aims to help make Ethereum more accessible to mass adoption. In addition to lower transaction costs, it also requires fewer energy resources, making OMG more affordable and environmentally sustainable.

The OMG network is secured with Proof of Authority (PoA) consensus mechanism. It is commonly used by private blockchains. The organization using the chain selects validator nodes. In the case of OMG, only one node produces blocks, making it centralized blockchain.

Bob’s Network

In 2021, after rebranding as OMG Foundation, the company launched a new blockchain known as Bob’s Network (BOBA). Like OMG, Boba is a layer 2 solution for Ethereum. It offers faster transactions for lower taxes. Holders of OMG tokens can exchange their assets for an equal value of BOBA.

As one of the updates to Bob’s OMG network, it also allows NFT bridge. This is a process that allows users to easily mint and transfer their non-fungible tokens between layer 1 and layer 2 chains. It also offers a process called Hybrid Computing it allows developers to build dApps using web-scale infrastructure without on-chain restrictions.

In the relatively short term, BOBA followed the same trends as the OMG Network token. However, the two assets are not tied to each other, and their value is not interdependent. Overall, the price of the OMG network has been higher in the markets, although the value of deflationary Boba tokens is expected to increase over time.