Project Overview
In 2013, the financial technology company Omise was established. The company has a project called OmiseGo, and the abbreviation of the OmiseGo project is OMG. Therefore, the tokens issued through this project are Also known as OMG Coin. The OmiseGO token, based on the Ethereum blockchain, hopes to help users "free themselves from the shackles of the bank", which means providing everyone with alternative financial and digital business tools. With OmiseGO, anyone can conduct financial transactions in a fully distributed and relatively inexpensive way.
Project Highlights
OmiseGO has built a blockchain gateway with decentralized trading, liquidity provision mechanism, clearing information network and asset support. OmiseGO is not owned by any party. Instead, it is an open, distributed network of validating nodes, and validating nodes within the network will constrain the behavior of all participants.
It uses a protocol token mechanism to create a proof-of-stake blockchain to enable market activity among participants. This high-performance distributed network allows transactions between different asset classes—whether fiat-backed issuers or fully decentralized blockchain tokens (ERC-20 class and localized cryptocurrencies). This is a new structure that uses Ethereum to secure clearing activities and historical transaction data by using Ethereum smart contracts.
OmiseGO is a blockchain network that handles basic coordination issues between payment processors, gateways and financial institutions. By enabling a large number of OmiseGOs to provide a new generation of asset transfer services across different currencies and asset types, across, low-cost decentralized transactions, across borders and corporate ledgers.
Through the OmiseGO network, anyone can flexibly complete payments, remittances, salary storage, B2B commerce, supply chain financing, credit systems, asset management and trade, and a variety of on demand at low cost financial services. In addition, millions of mainstream users in the Asia-Pacific region, the largest developing economy in the world, will gain an opportunity that will allow them to switch from using fiat currencies to using decentralized currencies such as ETH, BTC, etc.
Application scenarios
In the current financial system, assets such as currency are always locked in a chaotic network of indirect ownership and delayed settlement. Transferring assets from one party to another often requires peer-to-peer interactions between multiple intermediaries and reconciliation of duplicate ledgers. This is costly in many ways, including time, cost, transparency, security, irreversibility, etc. OmiseGO hopes to solve the payment coordination problem for a large number of small and medium-sized payment processors around the world. Large payment processors have large network effects for exclusivity, while smaller payment processors are more open to internet payments (to expand their smaller networks). Smaller payment processors cannot work with centralized clearing houses due to high costs and cumbersome administration. On the other hand, due to cheaper, faster integration and lower operating costs, small and medium-sized payments are more willing to open up their network to OmiseGO for integration.
The project targets the 73% of the population in Southeast Asian countries who do not yet have or cannot access formal financial services (the so-called "unbanked") and the 27% who currently use formal financial services ("Users of Bankers"). The project team believes that OmiseGo is "by far their best option."
OMG's Digital Wallet
A digital wallet is a store-of-value account where users can store money for any future online transactions, such as payments, or remittances according to fixed business arrangements . The OmiseGo digital wallet is the best combination of mainstream digital wallets and cryptocurrency wallets, as it enables secure real-time, peer-to-peer value exchange and payment services across different jurisdictions and institutional barriers, with payments ranging from fiat currencies and Decentralized currency.
Any OmiseGo user can make payments, remittances, payroll deposits, B2B commerce, supply chain finance, loyalty programs, asset management and transactions, and more in a fully distributed and low-cost way Financial transactions on demand. OmiseGO removes the intermediary layer and the tedious operations it brings, so that valuable assets (such as currency, loyalty points, game points, etc.) can be circulated in different ways. This opens up more possibilities for new types of financial and value exchange services.
Project risk
1. Intense competition in the payment field
The competition in the payment field in Southeast Asia is already very strong. Omise's competitors include local payment startup 2C2P, as well as global Payment giant Stripe, China's Alipay and Tencent have also deployed in the Southeast Asian payment market, as well as numerous small payment companies.
2. Policy risk
The payment field is very important and will be regulated by the state (currently, the third-party payment market is being rectified in China), especially when it comes to cross-border payment, there are relatively large legal and Regulatory risk.
3. Project Progress Risk
OmiseGO is a complex system. The team needs to do a lot of work, such as PoS consensus algorithm, DEX implementation, Plasma, SDK e-wallet and compliance functions. This means that there are many risk factors that can cause a project to be delayed. In addition, the success of the product also needs to be promoted and recognized by the market.
