México
Argentina
Colombia
Brasil
International (English)

OMG Network (OMG)

Modified on:


What is OMG Network (OMG)?

OMG is the native token of OMG Network, launched in 2017 (with the name of OmiseGo), aiming to solve blockchains’ scalability problems. OMG Network can process a more significant number of transactions than the Ethereum network through sidechains, a support network that groups several of these transactions into the same block and sends them directly for validation, thus optimizing processing time and cost. As it relies on the Ethereum network, OMG Network offers its services as Ethereum support, which is equally helpful for processing token transactions that follow its ERC-20 standard.  

 

What makes it unique

  • Sidechain solution based on plasma protocol is an off-chain solution capable of processing transactions in a different chain before sending them to the main Ethereum chain, making the whole process less costly in terms of computational and energy resources.  

  • It uses proof of stake (PoS) as a consensus mechanism, reducing the cost and increasing the speed of transactions.  

  • It interoperates with other platforms such as the Lightning Network, a payment system created using the Bitcoin ecosystem. 

  • The maximum amount of tokens offered was previously limited to 140.2 million units of OMG. 

  • In the OMG Network ecosystem, OMG tokens are used for payments and transfers and must use the network's services. Also, on the OMG network, you can use its tokens for staking. 

 

Purpose

OMG token is used within OMG Network, a second layer solution of the Ethereum network, to provide scalability and speedy transactions. The main functionality of the OMG token is to provide liquidity and guarantee the security of the network. OMG token holders can also stake and receive rewards within the OMG Network ecosystem. In addition, the token is used for payments, and it is also necessary for using network services. 

 

Sources of knowledge

 

Was this useful?