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Ethereum L2

What the OMG token is used for

What the OMG token is used for. OMG network (OmiseGo) is a layer-2 scaling solution for Ethereum.

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.

Watchers

  • 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

Plasma Smart Contract

Exists on the Ethereum blockchain.

It cointains

  • Deposits
  • Exits
  • Receipts of blocks from the child chain.

Child Chain

  • Maintains network state
  • Receives transactions and submits them to the Plasma smart contract

Watcher

OMG network can be used for scaling

  • Decentralized exchange.
  • Payments.
  • Inter blockchain communication.

OmiseGo Token issuance


Total supply: 140,245,398 OMG

Token sale in 2017

Amount: USD $25 million in ETH

  • Public 65.1%
  • Airdrop 5%
  • Reserve 20%
  • Team 9.9%

Team tokens locked for 1 year (2017).

Docs


Docs

Support docs

Paper

More on Plasma

What’s the story?


  • Layer-2 and scaling is in demand

Competition


OmiseGo price


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