What is OMG Network (ex OmiseGo)?
OMG Network is a Layer-2 scaling solution for Ethereum.
OMG token is used for
- Lock and Validate transactions on the OMG chain.
- Lock their tokens in a smart contract and earn fees for validating transactions on the OMG network.
- Improper activity results in the tokens being burned.
- Validators also run Ethereum to validate in parallel.
More on p.5 in the Whitepaper.
How OMG Network / OmiseGo works
OMG Network is a Proof of Stake sidechain using the Plasma framework.
The OMG Network consists of
- Smart Contracts
- Child Chain
- The Watcher
Exists on the Ethereum blockchain.
- Receipts of blocks from the child chain.
- Maintains network state
- Receives transactions and submits them to the Plasma smart contract
- Monitors the child chain.
- Reports inconsistency or malicious behaviour
- Can be run by anyone
OMG network can be used for scaling
- Decentralized exchange.
- Inter blockchain communication.
OmiseGo Token issuance
Total supply: 140,245,398 OMG
Amount: USD $25 million in ETH
- Public 65.1%
- Airdrop 5%
- Reserve 20%
- Team 9.9%
Team tokens locked for 1 year (2017).
What’s the story?
- Layer-2 and scaling is in demand