OmiseGo: The Next Generation Financial Network Unbanking The Banked [Finance DApp Review]
OmiseGo is a platform decentralizing the financial sector through Blockchain technology. This is a next-generation financial network that uses a public OMG network to provide scaling solution via Ethereum blockchain.
OmiseGo is creating a world where people can access financial services without the involvement of a third party at low fees and have their assets stored in a highly-secure network. Think of OmiseGo as a decentralized bank which uses its white-label eWallet to provide bank services to the unbanked populations. Just that OmiseGo is much useful to those using the traditional banking services as it is to the unbanked.
OmiseGo is currently ranked 19th on StateOfTheDApp
Traditional financial service providers have restrictions for the level of services that the public can access. Only the select few; usually the powerful rich individuals have access to exclusive banking services that can benefit their financial status. As well, the services accessible to the mass usually attract high service fees due to the multiple levels of intermediaries involved. OmiseGo solves this problem by providing financial services using a decentralized system backed with its native currency, OMG token.
The OMG token is an Ethereum ERC20 network token that is circulating in the digital currency market. This currency is responsible for the low fees that OMG users enjoy on the network.
Features of OmiseGo
OmiseGo's white-label SDK enables a wide range of developers to build stand-alone Decentralized applications that can use a wallet-to-wallet mode of transactions to transfer and trade digital currencies across different platforms. Their already developed algorithm allows developers to write easier, faster and more efficient code for blockchain applications.
Digital Asset Network
OmiseGo has a big network that allows local and international transaction of digital currencies. They use a secure network protocol to store users digital currencies thereby making funds secure.
Digital Currency Exchange
Another feature of OmiseGo is a decentralized exchange where digital currency traders trade cryptocurrencies and fiat domestically and internationally. OMG’s exchange supports multi-currencies, peer-to-peer and cross-chain transactions over little service charges.
The use of Ethereum smart contract and some designated protocol on OmiseGo network allows secure and fast transaction clearing on the ecosystem. This increases the efficiency of the network.
Benefits of OmiseGo (Brought by Plasma technology)
OmiseGo is able to possess the benefits listed in this post due to the exceptional technology powering it. This is no other than Plasma – a newly developed Ethereum Layer 2 architecture providing scalability, security and settlement for financial related services rendered on OmiseGo. Before Plasma, scalability was a serious issue on Ethreum blockchain. Accompanied by a slow and expensive chain, running a decentralized protocol on Ethereum network was had some difficulties. The development of Plasma technology has brought about a lot of benefits to the numerous stand-alone applications running on Ethereum network including OMG.
Since OmiseGo is an Open Source network that allows developers to use its predefined algorithm to build Decentralized Applications, there is a very high operation demand on OMG network. The Plasma technology allows OmiseGo to be able to process this increased demand thereby being able to handle millions of transactions at great speed.
The Plasma technology bonding digital currencies on OmiseGo to the Ethereum network create a secure environment for the users. Having an eWallet through which traders exchange their digital currencies make OMG a custodian of users funds. The Plasma technology along with some security protocols available on the OMG network increases the security and safeguard users’ funds.
OMG allows seamless interoperability with various wallets and platforms to give digital currency traders the ability to enjoy cross-chain transaction on the network. Different token protocols can operate without any constraint.
Decentralized networks are taking over the economic sectors. The ability to give users the power to control their communities without the involvement of any central authority or a third party makes Blockchain the leading technology in the finance world today. This results in low transaction fees since the third party works are being handled by computer programs through smart contracts.
Cons of OmiseGo
No use-case product
As beneficial as OmiseGo network is, it is safe to say that it is still a concept. This is because there is no tangible use-case for its protocol token - OMG. The success and rate of mass adoption of a digital currency largely depend on its use-cases. Platforms that have tangible use-cases for their native tokens usually grow faster than others. These use-cases are the elements pushing investors and traders to acquire these tokens.
OmiseGo is widely regarded as a "Sleeping Giant" due to its inability to produce quick and efficient burning. There is no doubt about how beneficial OmiseGo is to the economic world, especially in East-Asia. However, the token is highly volatile and this is seriously hindering its mass adoption.
Conclusion and Star Rating
Despite the fact that OmiseGo is still a concept, the team is doing amazing work on the platform. Their extensive usage of Plasma technology along with other security protocols make OmiseGo one of the most-secure wallets for digital currencies. The network has the ability to process millions of transactions in a matter of minutes and interoperability. I would give it 3.5 out of 5.