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OmiseGo Coin Review & Guide 2018
Privacy, fast payments, and efficient management are some of the issues many blockchain networks want to solve in 2018. Ever since Bitcoin was launched in 2009, most of the altcoins created have been trying to improve on the services offered by Bitcoin.
A few of the altcoins, like Ripple, have created platforms that enable seamless transactions between large banking institutions. Others, like Monero, are hailed for enabling complete privacy between traders.
And while the major altcoins have gained wide adoption rates for their ingenious services, few of them have successfully enabled the poorest in the society to get banking services. One of Bitcoin’s major goals was to help people who can’t qualify for traditional banking services get banked.
OmiseGo, while facing stiff competition from other cryptocurrencies, have made attempts to create a space where everyone can enjoy banking services irrespective of where they come from or how little they have in monetary saving. The question of whether it can it succeed or not will be unraveled as the paragraphs unfold.
What is OmiseGo?
OmiseGo is a cryptocurrency network that seeks to enable financial inclusion for everyone by providing blockchain-based decentralized services all-round. The network was founded in 2017 by a private company with branches in Japan, Indonesia, Thailand, and Singapore.
While it was developed by a private entity, the OmiseGo network is fully decentralized and dependent on the blockchain. It is open source and run by the community invested in the OmiseGo coin and the platform.
Established to be the best peer to peer cryptocurrency payment network, OmiseGo has faced lots of challenges along the way. Stiff competition from Bitcoin forks and other ethereum dApps is the network’s biggest challenge. However, the coin has remained dominant one year after its launch.
OmiseGo hopes to provide banking services to everyone through its decentralized exchange. Unlike any other exchange, the Omise exchange will facilitate payments between fiat currencies, cryptocurrencies, and fiat-backed assets. Traders can make transactions between two different cryptocurrencies easily without paying hefty fees as it is common on many centralized exchanges.
Since the Omise Go network is a decentralized app based on Ethereum, it utilizes smart contracts to enable fast, safe and trustless settlements.
Another problem the network aims to solve is the coordination between crypto payment gateways, payment processors and financial exchanges. The transfer of funds from banks to exchanges and then to payment gateway is tedious and expensive for investors. OmiseGo aims to simplify the way financial payments are made permanently by providing a one-stop exchange for all manner of payments.
By using an e-wallet that can hold fiat currencies and cryptocurrencies, the network hopes to streamline payments between fiat assets and cryptocurrencies. All records and transactions will be conducted on Ethereum’s blockchain.
The OmiseGo has been recognized severally by large media organizations like Forbes and TechCrunch for their determination in helping their network grow. They’ve also been able to attract the attention of successful blockchain developers like Vitalik Buterin and Gavin Wood, both founders of Ethereum.
Jun Hasegawa founded Omise, the company behind OmiseGo and several other startups in Thailand. He is an experienced web developer who also founded the successful payment Gateway, LIFEmee in Japan. For more than fifteen years, Jun has held managerial roles in both Japan and Thailand. The experience, coupled with the fact that he is an experienced developer, places him in the right position to lead OmiseGo.
Donnie is a Bachelor of Administration holder from the University of Bangkok Thailand. He previously worked with Jun Hasegawa at Alpha-do in Japan as an International Trading Manager. When he later moved back to Thailand, Jun accompanied him, and they co-founded the Omise payment Gateway.
While his major specialization is marketing, Donnie has held a management role in the past. He’s worked alongside developers and held a monumental role in helping establish OmiseGo.
Robin Clart leads a team of more than 15 software engineers, developers, and designers on the OmiseGo platform. He joined the Omise team in 2014 as a software developer and quickly assumed the role of CTO after the OmiseGo platform was launched. Previously, the software developer worked as a network security consulting company.
What makes OmiseGo Special?
OmiseGo is one of the most successful ethereum dApps. It is led by a team of highly qualified developers, designers, managers and Ethereum’s own founders, making it one of the most skilled teams in the crypto industry.
With the help of the skilled team, OmiseGo aims to handle the following unique services:
Ethereum payment gateway
The network aims to build a payment gateway for trades and financial payments in both fiat and cryptocurrencies. OmiseGo aims to break all boundaries that hinder cross-blockchain payments by utilizing smart contracts and a decentralized exchange.
Since the blockchain technology is accessible to everyone globally, OmiseGo aims to target all manner of companies and traders. The platform will be infinitely scalable and open source.
Open-source Development kit
To ensure the network’s decentralized exchange and payment gateway works seamlessly, OmiseGo has a development kit to provide OmiseGo wallet developers with the tools they need to build custom payment solutions.
The Software Development Kit (SDK) is freely available and is accompanied with guides to onboard developers. Think of the kit as what Ethereum offers decentralized apps developers. If a startup aims to target gamers and provide micro gaming services via the OMG exchange, the SDK will offer the tools they need.
Proof of Stake-based
Investors have the opportunity to stake their OMG coins and earn interest rates as the coins help secure the OmiseGo network. Unlike the ever energy intensive Proof of Work system, Proof of Stake circumvents the need for expensive hardware to validate transactions. Anyone willing to mine OMG coins only needs to stake their coins no matter how little they may be.
Plasma creates a framework for decentralized applications to improve their scalability. The term was conceived by Vitalik Buterin and Joseph Poon, the creator of the Lightning network. Plasma enables scalability by structuring blockchain computations differently than they are traditionally structured.
Ideally, plasma helps reduce the cost of computing blockchains and side chains. It also improves security by making the blockchain fraud-proof. This is achieved by creating smaller chains that run on top of the main blockchain. Each of the chains has smart contracts in spite of being connected to each other. In the end, plasma creates an interconnection of child chains, side chains and the main blockchain for better security and infinite scalability.
OmiseGo was developed by a team whose background is developing financial payment gateways. As such, most of the network’s services fall squarely on providing efficient financial services to everyone who believes in the blockchain technology.
The Software Development Kit contains tools that can help developers build applications that are in line with the OmiseGo network. The kit specifically targets e-wallet developers as the OmiseGo platform’s main goal is to streamline digital payments.
Digital Asset Gateway
The OmiseGo decentralized app is often seen as the best network for helping the unbanked get banking services. OmiseGo enables easy banking services by offering coordinated integration between debit and credit cards offline. Users can deposit funds over the counter or through ATMs and use the money to make payment anywhere using debit/credit cards.
Contrary to many cryptocurrency networks whose main financial models are online-based, OmiseGo targets to create a global network of banking services and retail partners. At the same time, the company wants to be the gateway for accessing digital assets easily. As such, once a user funds their cards using fiat, they earn OMG tokens that can be used to buy other digital assets or services.
Decentralized Exchange (DEX)
Established to be a better alternative to centralized crypto exchanges, the OmiseGo trading platform will offer all types of trading services. The exchange is hosted on the ethereum blockchain while transactions on the platform are verified by investors who stake OMG coins.
The investors will also help determine the right fee to be charged to traders on the platform. The Proof of Stake mining algorithm is used in place of Proof of Work for efficiently. But perhaps the best part of the exchange is its ability to conduct cross-chain payments between ethereum, its ERC20 tokens, and Bitcoin or Bitcoin forks.
The Clearinghouse is the network’s security mechanism that ensures transactions are completed safely through Ethereum-based smart contracts. Clearinghouses are also used to enable cross-chain payments where Bitcoin to Ethereum transactions are involved. They help make communications between Bitcoin and Bitcoin like blockchains with OMG for successful cross-chain operations.
The OmiseGo Coin
Like almost every ethereum dApps, OmiseGo has an ERC20 token that uses the ticker symbol OMG. Its main purpose is to provide staking services to OmiseGo platform users. But as the platform improves its decentralized application and payment gateway, the OMG coin will be used to incentivize platform users and act as a trading pair on the OmiseGo decentralized exchange.
OmiseGo pre-mined all OMG coins in June-July 2017. The coins were initially meant for crowdfunding, but the company reached its $25 million funding goal through a private sale and canceled plans to hold an ICO.
65% of the 140.23 million OMG coins pre-mined were issued to private investors during the pre-sale while 5% of the coins were airdropped to Ethereum investors who owned at least 0.1 ETH on July 7th, 2017. 20% of the remaining coins were reserved for use to validate OMG payments while the remaining 9.9% would be allocated to the OMG team.
After airdropping nearly 10 million OMG coins to Ethereum investors in September 2017, the OmiseGo team launched a mission to build an ecosystem that provides all the services they promised in their whitepaper. In addition to that, OmiseGo has been establishing partnerships around the world especially with banks and financial services.
In 2018, the company’s first goal on their roadmap was to complete the development of the Software Development Kit. OmiseGo has a name for the SDK project, Fuseki, and another name, Sente, to refer to the final SDK project after implementing all the suggestions made by developers and critics.
Between quarter 1 and quarter 3 of 2018, the company aims to develop and launch the plasma network. The company will also add the interface that enables quick options between fiat and crypto settlements. The final OmiseGo network with complete cross-chain payments and fiat and crypto payment capability will be called “Tengen.” The company does not have a specific date of when its ecosystem will be completed, which is a little disappointing to most investors. However, investors expect OmiseGo to complete the platform by quarter 3 of 2019.
How to buy OmiseGo
There is no doubt that OmiseGo is an impressive project. Its roadmap may be vague, but the whitepaper explains clearly how the company aims to provide the solutions they promised investors. If you already like the platform, here is a guide to help you invest.
Step 1: Set up an OmiseGo Wallet
The secret to securing cryptocurrencies is to use safe, personal wallets that allow you to keep the private keys. That means avoiding any web-based wallets where the company holds the private keys and generally online wallets known for being insecure.
The OMG coin is an ERC20 token that is supported by dozens of wallets—both free and premium wallets. Here are the three most popular and secure wallets.
Often regarded as the best cryptocurrency wallet by many, Ledger is a secure, easy to use multicurrency wallet that supports all ERC20 tokens. It’s a physical device shaped like a flash drive and engineered to hold users’ private keys in a hack-proof manner.
This wallet is a hybrid of a web and desktop wallet. It’s most people’s first option to hold ERC20 tokens. It’s freely available and provides you with the private key you need to withdraw and transfer payments.
Trezor is the biggest competitor to Ledger Nano S. Established in 2014; Trezor was one of the very first Bitcoin wallets. It quickly grew in popularity thanks to holding coins offline and for offering a more secure alternative to all existing wallets.
Step 2: Get some BTC/ETH
Bitcoin and Ethereum are the easiest cryptocurrencies to purchase with fiat money. The two currencies are also paired with all other altcoins and ERC20 tokens like the OmiseGo cryptocurrency. If you want to buy OMG, therefore, start by purchasing BTC or ETH on a fiat supported exchange.
Cex.io is one of the best exchanges to purchase BTC or ETH with credit cards or bank payments. Based in the UK since 2013, cex.io is an established company that processes payments fast. Its registration process is quick, and their KYC verification process is simple. But the biggest reason you should opt for cex.io over any other exchange is their efficient customer support that ensures you get your digital assets with the least amount of challenges.
Step 3: Select an OmiseGo Exchange
Since the verification process on cex.io may take a few hours or days, start looking for an exchange where you can buy OMG coins immediately. There are lots of exchanges that support OMG, but you should settle for none but the best.
Here are three of the most popular altcoin exchanges that support OMG:
Established in 2017, Binance is now the largest altcoin exchange in the world. It supports more than 200 altcoins and accepts members globally. Their registration process is fast, and you can withdraw up to 2 BTC without KYC verification.
If you’re a trader who prefers to use the most reputable and popular services around, Binance is a good option. It’s also secure, offers 2FA, and its fee is a low 0.1%.
Huobi targets high rolling traders through its Huobi token program that offers lower fees for investors willing to buy and hold a specific number of Huobi tokens. However, the exchange’s biggest user base lies in the small and medium budget traders. Their fees are 0.2%, but they support more altcoins than Binance.
HitBTC is one of the oldest altcoin exchanges in the industry. Launched in 2013, HitBTC came four years before Binance. While not as large as Binance in terms of liquidity, HitBTC ranks in the top 10 of the largest exchanges. Their fees are low at 0.1% and have zero deposit fees for all coins apart from Bitcoin. If you choose to buy OmiseGo crypto on HitBTC, consider depositing using ETH.
Step 4: Store OmiseGo safely
On average, a cryptocurrency exchange is hacked every four months. To prevent losing your OMG coins to an insecure exchange, transfer them to your personal wallet immediately. If you purchased a hardware wallet like the Ledger or Trezor, you will need a personal computer to launch it.
Hardware wallets are connected to computers like regular flash drives. They come with a passphrase of 24 words that you can use to recover your wallet afterward. Once set up, the wallets are as easy to operate as any other wallets.
The OMG coin was one of the best performing ERC20 tokens toward the end of 2017. After starting off at less than $0.5, the OmiseGo price reached $11 within three months. OmiseGo is a decentralized application built on the Ethereum blockchain in 2017.
The network’s aim is to provide an efficient banking solution to users as they deal with both fiat and cryptocurrencies. Through the use of debit and credit cards, the OmiseGo decentralized exchange and other services; the network aims to be the best peer to peer payment solution.
A lot of people believe in the services offered by the OmiseGo platform and in the strong team behind the company. Backed up by Ethereum’s founders, many investors believe OmiseGo has a team capable of actualizing the great services promised in the whitepaper. If this happens, OMG coin investors will be the biggest benefactors.
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