What is OmiseGO
OmiseGO (OMG) is a white-label wallet service provider, based on peer-to-peer, decentralized blockchain technology. It utilizes the Ethereum network and has a token currency within the network named OMG. OmiseGO has a mission statement of “unbanking the banked” in a goal of providing financial services at a cost lower than that traditionally charged by banks and financial institutions.
History of OmiseGO
OmiseGO was conceived in 2013 and is a joint venture company, Omise Blockchain Lab, operating in Thailand, Japan, Singapore, and Indonesia, was formed in 2015. Forbes magazine featured OmiseGO as a “Fintech Rockstar” in November 2016. Trading for the OMG token opened in July 2017.
The core team behind OmiseGO consists of Jun Hasegawa, Donnie Harinsut and Vansa Chatikavanij.
Blockchain experts Roger Ver and Vitalik Buterin are among the advisors of OmiseGO. SBI Investment, SMBC, SMDV, Ascend Capital, Golden Gate Ventures are among the top investors of OmiseGO.
How OmiseGO Works
As an ERC20-complaint token, OmiseGO utilizes the Ethereum network to work. It offers different financial institutions to build their own private wallets, custom to their users needs. This wallet works like any other digital currency wallet but with the notable expectation that this is built atop a blockchain network.
For example, User X, a client of Digital Wallet Y, can use the digital wallet, built using OmiseGO. When transacting, they send a command containing the wallet address and the amount to be transferred. This data will go to the OmiseGO Digital Wallet infrastructure through the OmiseGo API which is integrated into the wallet. The wallet then passes it on to the blockchain network. Once it reaches the blockchain it will be confirmed by miners and transferred like a regular cryptocurrency.
OmiseGO operates under the mission to “Unbank the Banked with Ethereum” and packs some nice features:
- No Bank Needed: OmiseGO eliminates the need to have a bank account for transactions, even for daily needs. It makes national and international transactions easy for everybody. There is no bank required in the process of transaction approval.
- Instant Settlement: Like many second- and third-generation cryptocurrencies, OmiseGO offers near-instant settlement times because its transactions complete within seconds, confirmations arriving mere seconds after its initiation. There is no longer a need to wait for days for an international transaction to complete.
- Cross-wallet compatibility: Using open standard protocol, wallets can interact with each other and can automate the transactions using Smart Contracts, a built-in advantage of the Ethereum network.
- Flexible: Using Smart Contracts, the OmiseGO wallet can be used for different purposes including payments, transfers, loyalty and rewards points, making it a flexible payment platform.
- Security: Transactions are safe and secure because they utilize ultra-secure blockchain technology. Moreover, the reliability of Ethereum network has been tried and tested.
- Low Transaction Cost: OmiseGO also brings down transaction charges by using blockchain and peer to peer technology where the transaction takes places between the sender and the receiver, directly, cutting out expensive middlemen in the process.