OmiseGO (OMG) Evolution as One of the Most Promising Ethereum Blockchain Projects
The bearish trends in the cryptocurrency market have had an adverse impact on the majority of digital assets, particularly altcoins. OmiseGO is among the digital currencies that have been affected by the unfriendly market conditions. Regardless, the project recently updated their customers on the state of the cryptocurrency through a post on the Medium blogging platform.
In the article, the OmiseGO team stressed that the venture is still following its roadmap and that novel changes are being implemented. However, the team stated that it will start using a different approach in deploying the features mentioned in its roadmap. Instead of using the milestone model, OmiseGO will now use a tracker to indicate the progress made on smaller timescales. The reasons behind this change are the problems that arose as a result of using milestones, including speculations and frustrations.
Components Of The OmiseGO (OMG) Ecosystem
The objective of the OmiseGO project is to use blockchain technology to develop a frictionless, trustless and permissionless payments network. The OMG network will be universally accessible as a decentralized exchange platform that transacts all types of value. The major components of the OMG network include:
- eWallet Suite and Application Interface
- Plasma Blockchain Scalability Framework
- Decentralized Exchange Layer
- Proof-of-Stake Consensus Mechanism
eWallet Suite And Application Interface
The eWallet Suite is a free open-source software package developed by OmiseGO to allow merchants and users to join the OMG Network. The suite comprises of software development kits for Android, iOS and Ruby platforms.
After linking their eWallets to Ethereum and plasma, users can freely transact in digital currencies, tokenized fiat currencies and many others. OmiseGO is working to continuously add new features and currencies. Later on, the eWallet will have the ability to store fiat currency.
The eWallet is primarily a web-based application. To facilitate the interaction with the eWallet, the Suite is equipped with the following features:
- API (Application Programming Interface) – this acts as the interface between the OMG eWallet and third-party wallet platforms.
- SDK (Software Development Kit) – this allows developers to integrate their software into the OMG Network.
- Frontend admin panel – this simplifies the processes of customization, token creation and issuance, activity logs and many more.
- Backend app – this can be accessed using the API or SD. It supports both server-level and mobile apps.
- Demo applications – these are apps that are yet to be published in mainstream app stores. They are designed to offer a template for how the eWallet can be deployed.
So far, the eWallet Suite has improved on the following:
- Public release of eWallet 1.0.0. Moreover, the development team is working on version 1.1. The current version allows users to mint and sends tokens using a local ledger.
- Availability of iOS, Android and Ruby SDKs.
- Merchant and consumer side Point-of-Sale apps for iOS and Android devices.
- Version 1.2 of the eWallet will integrate blockchain technology
Plasma Blockchain Scalability Framework
Plasma is a framework that facilitates the development of blockchain-based solutions without compromising on security. Essentially, a plasma chain is an autonomous blockchain with its own consensus mechanism and functionalities. The main disadvantage of plasma is that all transactions must be tracked to the Ethereum blockchain. Users can transfer funds from the plasma chain to the Ethereum blockchain at their own volition.
Despite its independence, it is worth noting that Plasma chains are not side chains. The difference between plasma chains and side chains is the exit mechanism. Typically, side chain users depend on the security features of the side chain, whereas plasma chain users rely on the chain's consensus to secure their funds. Also, plasma chains have an interactive exit game that detects unscrupulous behavior.
OmiseGO is currently working on adding the following features for its decentralized exchange platform.
- MVP ( Minimum Viable Plasma) – this facilitates blockchain-based payments
- MoreVP (More Viable Plasma) – an improved version of MVP with better security and user interface.
- Plasma Cash – the plasma chain represents assets in the form of non-fungible tokens. Here, the blocks differ from Plasma MVP blocks, in that Plasma Cash blocks designates a slot for every token.
- Plasma XT – this establishes checkpoints meant to be used during the exit from the plasma chain to the root chain (Ethereum blockchain). Its objective is minimizing the storage and computation requirements of each coin during the exit.
- Plasma Debit – this will enable users to spend fractional values of a non-fungible token.
The first version of OmiseGO plasma implementation is called Tesuji Plasma. This solution is built on Minimal Viable Plasma. The project is presently in Testnet.
After the period allocated for the Tesuji Plasma Testnet elapses, the project will move on to a public Testnet followed by the mainnet release.
Decentralized Exchange Layer
The OmiseGO decentralized exchange layer facilitates easy exchange of crypto assets on the OMG Network. Initially, the OMG DEX will act as the base layer for a collection of platforms where orders to transact crypto assets are executed.
The first version of this decentralized exchange will use a construction known as Restricted Custody. This feature ensures that users have complete control over their funds and the maximum number of transactions are performed without affecting liquidity.
Proof-of-Stake Consensus Mechanism
The primary use of the OMG token is staking on the OMG network’s proof-of-stake consensus mechanism. Staling means that the token is locked up in a smart contract by an authenticator who determines the next block to be added onto the blockchain network. The tokens can be re-staked if the staking period elapses.
Users who demonstrate honest behavior are rewarded with incentivized transaction fees, while users who misbehave have their staked tokens destroyed. Advantages of this consensus mechanism include security through redundancy, reduced points of failure, more decentralization and efficient energy consumption.
The existence of the proof-of-stake consensus mechanism relies on the presence of a functional decentralized exchange. Therefore, the consensus mechanism will only be deployed after the exchange platform gets up and running. That being said, OmiseGO has already developed a framework for the proof-of-stake mechanism.
Go.Exchange is a subsidiary exchange platform developed by OmiseGO. Notably, this platform runs separately form OmiseGO. The segregation between the two companies is aimed at ensuring that the interests of one party do not manipulate the design of the decentralized exchange.
The role of the Go.Exchange is to act as a gateway for new users to join the crypto space and serving as a platform that enables the conversion of fiat money into virtual currencies. Trade settlements will be performed through the OMG Network.
The OmiseGO team is actively seeking partnerships with projects that are willing to build on OMG. In this regard, the company is planning to invite a few promising startups to its Testnet. Other aspects that OmiseGO is working on include proof of concept and loyalty points for the eWallet platform.
Lastly, OmiseGO revealed that they have been forging partnerships with an unnamed exchange. The collaborations are aimed at increasing the trading volume and liquidity on the decentralized exchange platform. Also, the partnership will ensure that the decentralized exchange optimally uses the features of the OMG network.