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Choose your quick section of our OMG Network review below.
A Quick Overview of our OMG Network Review:
The underlying framework for the OMG Network was designed by the founder of Ethereum, Vitalik Buterin and the Ethereum developer, Joseph Poon but the network Jun Hasegawa and Donnie Harinsut established it.
What is OMG Network?
OMG Network, formerly known as OmiseGO, is a non-custodial and Layer-2 scaling solution which was developed for the Ethereum blockchain. OMG Network allows users to transfer Ethereum and ERC20 tokens faster and at lower cost than transacting on the Ethereum network.
Key Features and Takeaways of OMG Network
OMG Network is a popular cryptocurrency project and its native token, OMG, is one of the top 100 cryptocurrencies on the market. OMG Network has the following key features and takeaways:
The underlying framework for the OMG Network was designed by the founder of Ethereum, Vitalik Buterin and the Ethereum developer, Joseph Poon but the network Jun Hasegawa and Donnie Harinsut established it.
They proposed a protocol named Plasma which sought to increase Ethereum’s performance. An adapted version of Plasma was drafted, and they called it “Minimal Viable Plasma”, leading to the full development by the OMG Network to become “More Viable Plasma”.
The version of Plasma which is specific to the OMG Network makes use of a Proof of Stake (PoS) consensus mechanism that involves three components namely smart contracts, operators, and watchers.
The smart contract component of OMG Network delivers batches of transactional date to the core Ethereum blockchain while operators are entities that provide computing power which is necessary to aggregate transactions, produce blocks, and send blocks that have transactions to the smart contract.
Watchers on the OMG Network are responsible for monitoring the network for irregularities in addition to ensuring that information sent to Ethereum by Operators is correct.
OMG Network focuses on scalability as well as security at the expense of decentralisation. Operators on the network are centralised and the Watchers ensure that the network remains secure by monitoring the actions of the Operators.
OMG Network developers added additional features to optimise the design of Plasma by removing the need for multiple network confirmations. These are often required when processing a transaction on other blockchains, giving users the option to withdraw their funds from the network, all as a safety precaution, resulting in the renaming to “More Viable Plasma”.
OMG Network’s V1 Mainnet Beta only has one function, but it is a vital one. It allows users to transfer Ethereum as well as ERC20 tokens for a third of the cost at lightning-fast speeds.
The Ethereum blockchain currently has between 14 to 20 Transactions Per Second (TPS) whereas OMG Network can process 4 000 TPS.
OMG Network’s native coin, OMG, is used to pay for fees on the network and plans are for it to be used for staking by network Watchers.
OMG has more than 200 trading pairs across more than three dozen exchanges which feature excellent liquidity, making exchanging and trading a feasible venture for many traders and investors.
OMG Network also includes a public, currency-agnostic decentralised exchange (DEX) and through smart contracts, OMG Network can communicate with Bitcoin and other blockchains.
OMG Network Mining
OMG Network uses a Proof of Stake (PoS) consensus mechanism which means that tokens cannot be mined. The OMG token has one purpose, to be staked. This involves a process where OMG token holders lock away their tokens for a certain period.
In return for staking OMG, they are given the right to run a validator node on the blockchain and to earn rewards when they process and validate transactions. Staking is not yet enabled on the OMG Network and there is no indication of when it will take effect.
Staking rewards issued by the OMG Network will originate from transaction fees which are associated with use of the OMG Network. These rewards are paid to validator nodes who lock away their tokens in smart contracts.
These contracts ensure that nodes behave, or the nodes will face penalties where portions of their stake will be “slashed”. The transaction fees on OMG Network are determined by supply and demand within the network, which means that these fees and the subsequent rewards, are dynamic and may fluctuate.
Pros and Cons
| ✔️Pros | ❌Cons |
|---|---|
| OMG Network employs advanced Plasma technology and has adapted a crucial component | OMG Network is centralised as result of Operators and Watchers |
| Interoperable with the Ethereum blockchain, allowing for the transfer of Ether and other ERC20 tokens | Development is slow and the development team has missed many targets in the past |
| The OMG Network is trustless, enabling users to retrieve and recover funds even if the network is inaccessible or it fails | There are many successful competitors in the industry that outshine OMG Network |
Transaction Fees
| Type of Fee | Information |
|---|---|
| Trading Fees | From 0.08% up to 0.125% |
| Deposit Fees | 0.7 OMG |
| Withdrawal Fees | 13 OMG |
Should you buy OMG Network?
OMG Network has performed exceptionally well on paper, however, in practice, it has been lacklustre. There are frequent development delays as well as missed targets, resulting in the OMG Network and its development team coming under fire in the past.
OmiseGO has a long list of reputable partnerships but the OMG Network, on its own, cannot say the same. There is a general disconnection between the expectations and reality from the launch of the project until recently, giving OMG Network a poor reputation, and leaving investors unsure whether it is worth the investment when there are so many other projects that are making headlines.
How to buy OMG
Step 1 – Register an account with Gate.io
Navigate to the official Gate.io website and select the option to “Sign Up” from the homepage.
Complete the online registration form by providing country/region, a selected username, email address, and user-selected password. Read and accept the User Agreement and Privacy and select “Next”.
Create a fund password and select “Create Account”. Complete the “I am not a robot” reCAPTCHA. Check your email inbox for the activation email and click on the link in the email. If the link does not work, you can copy and paste the URL into your browser.
Log into your account using your credentials and complete the reCAPTCHA.
Check your email again for the verification email that contains the 6-digit code and click on “Confirm”. Enter the code that you received into the blocks provided and select “Log In” to proceed.
Before you can use the platform to purchase OMG Network/OMG and other cryptocurrencies on Gate.io, you must complete the “Know Your Client” or KYC procedure to verify your identity and your proof of residence.
Click on “KYC Now” at the bottom of the webpage to start the process.
Select whether you are an individual or an organisation by selecting “Verify Now” under the relevant option.
Select your country from the dropdown list, enter your full name followed by confirmation thereof. Select your ID document type and provide your ID Number as shown on your official ID Document.
Click on the first image to upload a clear photo of the front of your ID document followed by a clear photo of the back of the document.
Next, write your Gate.io unique ID on a piece of paper and take a photo of yourself holding up your identity document (front) and the paper containing your unique ID.
Once you have done this, click on “Confirm and Submit”.
Next, you must enable the Timed One-Time Password (TOTP) to be able to log into your account. This can be done by clicking on “Set Now” at the bottom of the page.
On the new page that loads, select “Click here” to set up Two-factor Authentication.
Download Google Authenticator onto your mobile device by making use of any of the abovementioned methods.
Follow the steps indicated to add your Gate.io account by scanning the QR code or entering your unique key.
Enter the TOTP, your fund password, and the code sent to your email address and select “Enable Two-factor Authentication”. With this setup, you must use the Google Authenticator app to sign into your account every time.
Step 2 – Deposit funds
You must note that Gate.io is only a crypto-to-crypto exchange which means there is no fiat gateway. The only way through which funds can be added, is to transfer an existing crypto into your Gate.io wallet.
OMG can only be bought through Tether/USDT or Bitcoin/BTC while it can be traded with USD as a futures contract.
Navigate to the deposit/withdrawal section by hovering over your account and selecting the relevant option. Choose from the list of coins in which you can make a deposit and select “deposit” next to the appropriate coin.
You will be redirected to a page which generates a deposit address for the coin that you wish to deposit.
Copy this address, or scan the QR code, into the wallet where you are making a withdrawal from and depositing to Gate.io and wait for the relevant blockchain to confirm your transaction. Once the transaction has been completed and verified by the nodes on the chain, the coins will be sent to the Gate.io wallet and you can start trading OMG.
Step 3 – Explore your trading options
Gate.io offers a variety of ways through which cryptocurrencies can be obtained. Each of these can be explored individually depending on your trading needs and objectives.
To start trading OMG, select the option from the “Trade” Menu. Enter “OMG” into the search bar to see which trading options are available.
For spot trading, for instance and as an example, select OMG_USDT. Once you have selected, you will be directed to the exchange page which corresponds to the cryptocurrency pair OMG/USDT.
Here, you will see that you have the option to buy or sell OMG either as a limit order, grid trading, or as a time condition. The most common trading method is that of limit trading and thus it will be used for this guide.
Step 3 – Buy OMG through via Limit Order
To buy OMG and create a limit order for it, you can enter the amount of OMG you want to purchase, and the price you want to buy it at in USDT. This tool will tell you what the overall cost is in USDT, or any other chosen counter-currency, which will be deducted from your wallet once the order has been executed.
Step 4 – Sell OMG through via Limit Order
To sell OMG, find the panel under the chart and create a limit order for USDT according to your own preferences. Note that with a peg to USD, OMG that you exchange for USDT will hold the flat value that it has despite market conditions in the cryptocurrency market.
Step 5 – Withdraw funds
To withdraw funds, you will use the same page in Gate.io which was used to make a deposit.
Click on the deposit/withdrawal option on your Account dropdown and find the wallet of the currency that you wish to withdraw. You can do this easily by using the search bar provided.
Instead of a deposit address being generated, you will do this on the exchange, or the wallet being used as the destination for withdrawal of funds from Gate.io. Paste the address of the receiving wallet in the field provided and provide your Gate.io fund password, email code, and TOTP before selecting “Submit Request”.
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Frequently Asked Questions
When was OMG Network first launched?
OMG Network was founded as OmiseGO in 2013.
Who founded OMG Network?
Jun Hasegawa and Donnie Harinsut founded OMG Network.
What is “ICO”?
It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.
When was OMG Network’s ICO and how much did it raise?
The ICO for OMG was held in June 2017 and more than 350 million ZAR.
Is OMG Network legit?
Yes, OMG Network and the OMG token are legit.
What is OMG Network’s total supply?
OMG has a total supply of 140 245 398.
What is the purpose of OMG Network?
To provide users with access to financial services which can create economic opportunities and improve lives.
On which blockchain is OMG Network based?
OMG Network is based on its own blockchain.
Does OMG Network work with smart contracts?
Yes, OMG Network uses smart contracts to deliver batches of transactions data to the Ethereum blockchain.
Does OMG Network have potential to become more valuable?
Yes, if the development team behind OMG Network put in a conceited effort to meet targets and be more open regarding the roadmap of the project, it has the potential to become more valuable and earn a good reputation, attracting more investors.
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