What​ is ​OmiseGO?

What​ ​is​ ​OmiseGO?

The aim of OmiseGO is to build a decentralized exchange. This means that traders will be able to exchange their cryptocurrency without a third party. Furthermore, along with a decentralized exchange OmiseGO aims to build a liquidity provider, clearinghouse messaging network, and asset-backed blockchain gateway. One important aspect to note is that OmiseGO is not owned by one single entity. Due to its nature of being a distributed network, all of the validators on the OmiseGO network enforce the behavior of all participants to ensure that there are no attacks on the network.

OmiseGO is different from other blockchain platforms because OmiseGO is able to integrate decentralized exchanges from other blockchains and can trade between multiple blockchains directly without requiring an intermediary between the two decentralized exchanges. The benefits of this is that markets could significantly reduce spread and improve trust in the market by maknig all of the market activity completely transparent.

The​ ​Cryptocurrency

The developers of OmiseGO aim to build a blockchain that connects to other blockchains in order to facilitate trading between tokens and cryptocurrencies backed by Ether. Activity on other blockchains can link with the OmiseGO chain via interchain functions similar to BTC Relay on the OmiseGO chain. The OmiseGO chain, in effect, validates the all participants’ activities, as well as their activity on other chains. The role of the OmiseGO token is to bring enforcement of the network and security. The token acts as a bond for its activity on the OmiseGO blockchain; improper activity by users causes the token to be burned on the OmiseGO chain. The developers of OmiseGO were able to, in essence, construct a system where consensus rules are highly optimized by creating a custom blockchain with a high degree of enforcement.

Owning OmiseGO tokens gives users the right to validate the OmiseGO blockchain. Transaction fees on the network such as payment, interchange trading, and clearinghouse use, are given to validators on the network that enforce the states of the smart-contracts. The value of the OmiseGO token comes from the fees on the OmiseGO network.

Timeline

  • June 23, 2017: ICO for OmiseGO starts
  • August 30, 2017: OmiseGO announces partnership with McDonalds Thailand
  • August 30, 2017: OmiseGO surpasses $1 billion in marketcap for the first time
  • September 11, 2017: OmiseGO added to Poloniex