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 called OMG coins. The OmiseGO token is based on the Ethereum blockchain, and it hopes to help users "get rid of 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 transactions, liquidity provision mechanism, clearing information network and asset support. OmiseGO is not affiliated with any party. Instead, it is an open, distributed network of validators that constrain the actions 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 classes as well as native cryptocurrencies). This is a new structure that guarantees liquidation activities using Ethereum and guarantees historical transaction data through the use of Ethereum smart contracts.

OmiseGO is a blockchain network that handles fundamental coordination issues between payment processors, gateways and financial institutions. By enabling a large number of OmiseGO to provide a new generation of asset transfer services across different currencies and asset types, across different, low-cost decentralized transactions, across national 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 various on-demand financial services at low cost. In addition, millions of mainstream users in the Asia-Pacific region, the largest developing economy in the world, will have the opportunity to switch from using fiat currencies to using decentralized currencies such as ETH, BTC, etc.

Application scenario

In the current financial system, assets such as currencies are always locked in a chaotic web of indirect ownership and delayed settlement. Transferring assets from one party to another typically 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 of a large number of small and medium-sized payment processors around the world. Larger payment processors have exclusivity due to larger network effects, while smaller payment processors are more open to internet payments (to expand their smaller networks). Smaller payment processors are unable to 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 their networks for OmiseGO to integrate.

The project targets the 73% of the population in Southeast Asian countries who do not use or have no access to formal financial services (the so-called "unbanked") and the 27% of the population currently using formal financial services ("banked By"). According to the project team, OmiseGo "is their best bet so far".

OMG Digital Wallet

A digital wallet is a store of value account where a user can store money for any future online transaction such as making a payment, or sending money according to a fixed business arrangement. OmiseGo digital wallet is the best combination of mainstream digital wallet and cryptocurrency wallet, because it can realize secure real-time, peer-to-peer value exchange and payment services in different jurisdictions and institutional barriers, and its payment scope covers fiat currency and Decentralized currency.

Any OmiseGo user can conduct payments, remittances, payroll deposits, B2B commerce, supply chain finance, loyalty programs, asset management and transactions, and other on-demand services in a fully distributed and low-cost manner financial transaction. OmiseGO removes the intermediary layer and its cumbersome operations in order to allow valuable assets (such as currency, loyalty points, game points, etc.) to circulate in different ways. This opens up more possibilities for new types of financial and value exchange services.

Project risk

1. Fierce competition in the payment field
The competition in the payment field in Southeast Asia is already very large. Omise’s competitors include the local payment start-up 2C2P, the global payment giant Stripe, and China’s Alipay and Tencent. Has laid out the payment market in Southeast Asia, as well as many small payment companies.

2. Policy risk
The payment field is very important, and the country will supervise it (currently the country is also rectifying the third-party payment market), especially when it comes to cross-border payments, there are relatively large laws and regulations 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 wallet and compliance functions. This means that there are many risk factors that could delay the release of a project. In addition, the success of the product also needs to be promoted to gain market recognition.