Bitcoin News

What is all the fuss about OmiseGo?

OmiseGo is a distributed ledger technology platform that seeks to revolutionise the way payments are made and received. The OMG token, which is led by parent firm Omise, is meant to make it easier to pay for fast food or online shopping via the OmiseGo financial platform.

The Thai operation aims to convert Ethereum-based blockchain code into a mobile bank account.

1200px OmiseGO Logo.svg

Omise is a Thailand-based startup that serves as Southeast Asia’s Stripe. The firm, which was founded in 2013 in Bangkok, develops and maintained an online payment gateway that facilitates payment processing and bill payment.

In 2017, Omise co-founders Jun Hasegawa and Donnie Harinsut launched OmiseGO and raised over $25 million through an initial coin offering (ICO) for the OmiseGo Ethereum cryptocurrency token.

OmiseGO has a slew of high-profile strategic relationships as a result of its current online payment solution. Vitalik Buterin and Gavin Wood, co-founders of Ethereum, are among its advisors, and it is approved by the Thai Ministry of Finance and the Bank of Thailand.

Omise intends to leverage the OmiseGO platform to augment its existing payment network, which is already accepted by McDonald’s and Alipay.

OmiseGO’s goal, like with Omise, is to disrupt the financial sector.

The wallet SDK is white label, which implies that it may be used to deploy payment solutions by other businesses. It claims to reduce the cost of sending and receiving money, making payments, converting fiat currencies and cryptocurrencies, and purchasing gift cards, among other things.

OmiseGO brings bitcoin one step closer to mainstream acceptance as a form of payment by shops and merchants.

If successful, it will function as the PayPal of cryptocurrencies, which will benefit the market capitalization and coin price. Vitalik Buterin has expressed his desire to be able to purchase prepaid cryptocurrency cards at stores.

Elon Musk also has views on OMG:

What are OMG Tokens exactly?

There are 140,245,398 OMG in circulation. The quantity is limited, the token is not mineable, and no further tokens will be generated in the future.

65 percent of OMG coins were distributed during the ICO token sale, while Omise kept 20% for operating expenditures, 10% for the development team, and 5% for airdrops to ETH hodlers.

According to Etherscan, 1,683,220 OMG transactions have occurred, with 601,715 addresses presently holding the token. The top 100 accounts, on the other hand, jointly hold 65.42 percent of the supply.

Naturally, some of these top 100 accounts are associated with exchanges such as Bittrex and Binance. Visit Etherscan to view these accounts in their entirety. These are actually token pools that the exchange maintains for the benefit of its whole user base.

Even so, token ownership is extremely concentrated for a decentralised blockchain. Remove OmiseGO and those exchanges, and a small fraction of users still control over 25% of the supply.

At block height 3988888 in September 2017, OMG was airdropped to any ETH address holding more than 0.1 ETH. The user did not need to take any action. OmiseGO advises that this is the sole airdrop reported, and any others are frauds.

SBI Investment, SMDV, SMBC, Golden Gate Ventures, Ascend Capital, East Ventures, Krungsri Finnovate, and Global Brain are all significant OMG partners.

The OmiseGO blockchain is a Proof-of-Stake network that utilises the ERC20 currency.

Additionally, OmiseGO is one of the first currencies to begin development on the Plasma Network, a smart contract network built on top of the Ethereum mainnet.

Buterin (together with Joseph Poon) also invented Plasma, which may be used as a child chain for other blockchains.

Plasma is capable of handling significantly bigger data sets than Ethereum’s mainnet and is designed for corporate scalability. It is quicker than the Ethereum mainnet (15 TPS), Ripple (1500 TPS), and even Visa (50,000 TPS) with a maximum of 1 million transactions per second (or more).

The release of the Plasma OMG was originally slated for Q4 2018, however the alpha was finally made public in April 2019.

OmiseGO’s brief history

It is critical to recognise that Omise and OmiseGO are two distinct goods and businesses (something the media and Internet forums get confused quite often).

However, because OmiseGO is a project funded by Omise, there will be considerable overlap between the two initiatives. Omise is a venture-backed company with strategic alliances and the introduction of OmiseGO to aid in its support, so we’ll discuss both.

Similar to PayPal and Stripe, Omise interacts with retail platforms both online and offline to enable mobile payments, with an emphasis on the Japan and Southeast Asia markets.

Its API is open to the public and PCI compliant, allowing it to lawfully process credit card transactions. Omise is compatible with the most popular ecommerce systems, including WooCommerce, Magento, and OpenCart.

Additionally, it supports SWIFT (a critical banking communication service), which, along with PCI compliance, is a necessary condition for cryptos to comply with financial rules.

Over 10,000 retailers in the Asia-Pacific area accept Omise, with McDonald’s Thailand and Alipay being the biggest. Alipay is Alibaba’s third-party payment platform.

Additionally, Omise serves as the exclusive payment mechanism for the McDelivery Thailand mobile application. Additionally, Burger King, Allianz, and Bose accept it.

It is critical to realise, however, that simply because these shops accept Omise as a payment platform does not guarantee they accept the OMG token as a currency.

OmiseGO is a subsidiary of Omise, and purchasing OMG tokens does not constitute an investment in Omise. Nonetheless, Omise is utilising the OmiseGO network and will support OmiseGo cryptocurrency tokens, and Stripe expressed good sentiments about the project in its statement announcing the termination of Bitcoin support.

OmiseGO has received widespread appreciation online in mainstream media, social media, and Internet forums due to its integration with the current Omise platform (together with Thailand’s government and banking industry).

This connection might ultimately enable the conversion of all cryptos and fiat currencies (along with other tokenized currencies, such as in-game currencies) — at the very least, that is the objective.

Additionally, due to its VC backing, it has a higher probability of achieving full liquidity than the majority of crypto currencies and tokens.

OMG in everyday life

While many cryptocurrencies aim to disrupt global banking, Omise and OmiseGO are really following current financial patterns.

Their mission is to give banking to the unbanked, a mission shared by PayPal and Stripe.

Credit card processing is a time-consuming procedure that is backed by a sizable business. Credit or debit card transactions entail the involvement of a cardholder, a merchant, an acquirer, a card network, and an issuer. When you use your card at an ATM or business, many procedures are taken.

Approximately 11.9 percent of retail sales are now conducted online.

Around 37% of shops offer mobile payment alternatives using digital wallets such as Apple Pay, PayPal, Masterpass, and ChasePay.

This contrasts to only 3% of retailers who now accept or intend to take cryptocurrency within the next 12 months. Bitcoin is by far the most generally accepted cryptocurrency among those that do accept it.

Worldwide, approximately 2 billion individuals are now unbanked, according to the World Bank’s Global Financial Inclusion database.

This implies they lack access to a bank account and financial institutions. According to the FDIC, 9 million individuals in the United States are unbanked, while another 24.5 million are underbanked.

While the US economy is 43 times the size of Thailand’s, expanding into Japan, China, and other Southeast Asian countries swiftly reduces that gap. This is what Omise is appears to be attempting.

The prospective market, excellent business model, connection with existing products, rapid transaction speed, charity donations, and strategic alliances all contribute to OMG’s high popularity in the crypto world, despite its relative obscurity in the US market.
It is comprised of Ethereum tokens and currently has the 11th highest individual token price.

Due to the fact that OmiseGo OMG is based on Ethereum, it appears as though it faces the same competition as ETH. This includes Cardano and, more specifically, NEO/GAS, which is headquartered in China and operates on the Ontology blockchain network rather than the OMG network.

In a broader context, OMG’s true competitors include all of the aforementioned digital payment systems, including banking alternatives such as Stripe, PayPal, Google, Samsung, and Apple; major card issuers such as MasterCard, Visa, and American Express; and even the big banks themselves.

How can I purchase some OMG?

OMG may be purchased on the Kraken exchange. To purchase it, first buy some Bitcoin and then convert the Bitcoin to OMG. See here for a more detailed tutorial on how to do this on Kraken.

OMG is also available on Binance.