Whats the coin about? #Lets talk about OmiseGo!
Hello Steemians
OmiseGo - a bank for the bankless
OmiseGo is a project of the company Omise, a VC-supported company in the fintech / payment sector from Asia. There it is not an unknown startup and was already featured in the Thai Forbes.
OmiseGo is based on the "Be your own Bank" approach, which is known from the Bitcoin scene. Based on Ethereum, a decentralized exchange or generally a decentralized payment network is to be developed. In addition to ERC20 tokens, Bitcoin, other crypto- and fi-currency as well as other assets can be traded. Thus, people who do not have access to the classic banking system are also to receive appropriate services and functions via OmiseGo and related wallets.
An OmiseGO block that is still to be developed, which will continue to be connected to the Ethereum network, will then enable the user to perform various types of payments over the network. This allows a high degree of decentralization.
One feels here quickly reminded of Ripple, the gateway system of this payment network offers the possibility to exchange value systems between different chains or between Fiat and Ripple values. Here, the team at OmiseGo sees the risk that the validators responsible for the gateways always remain the same - so that a centralization is created. It is also criticized that ripple as a third party becomes necessary for transactions where the source and target set are not ripples. Finally, the back of Ripple is not a public permissionless ledger, but the team behind OmiseGo is important.
Decentralized exchange on the OmiseGo-Blockchain
The OmiseGo approach is strongly linked to the blockchain being developed. This maintains the current state of assets that the owner of an eWallet - often referred to as digital wallet - outside of the whitepaper - stores in the same. This eWallet is not only the portal with which your own investments are managed, but also the gateway to the decentralized Exchange. The engine that organizes decentralized trading is strongly linked to the OmiseGo blockchain. On this, the buy and sell orders are also stored. A trade is realized when a trading group from buy and sell orders could have several confirmations on the blockchain.
Fiat's tokens are used to trade Fiat. One problem with this is that Fiat currencies do not exist on the OmiseGo or other blockchains. This requires a decentralized clearing house, which ensures liquidity, which is necessary especially when exchanging between different Fiat currencies. This should also be achieved decentrally by storing capital in an Ethereum Smart Contract - this is intended to guarantee liquidity. In addition, the prospect of creating a basis for clearing houses based on bitcoin is also a prospect. The capital stored in this SmartContract is released again after finalizing a payment.
With such mechanisms, OmiseGo also wants to create a kind of lightning network by initiating transactions on other blockchains such as the Bitcoin Blockchain. In this regard, OmiseGo reminds a little of the sidechain concepts of Blockstream and others.
