Distributed Ledgers Technology (DLTs), especially Blockchain technology, has the power to change the way the world is today, revolutionizing finance, governance, and even lifestyles. Even though blockchain platforms promise breakthrough innovation, however, their performance is the biggest hurdle in the path to achieving true success. Nevertheless, several scaling and performance solutions are emerging.
In the context of blockchain, scalability is referred to as the ability of the blockchain platform to process a high volume of transactions both quickly and cheaply. The current poor transaction throughput is because of the intensive mechanisms for data verification and consensus mechanisms that are required to maintain decentralization and security. Blockchain networks suffer from degraded transaction speeds when the network is busy. This results in a poor user experience. Furthermore, as the network gets busier a hike in the gas prices is also seen as transaction senders aim to outbid each other. All this can make using a blockchain platform, like Ethereum, very expensive.
Layer-2 is an umbrella term for solutions that are designed to help scale the blockchain-based applications by handling transactions off the blockchain platform’s Mainnet (layer-1) but ensuring to utilize the benefits of the robust decentralized security model of the Mainnet. OMG Network is one of the initiatives to solve the degradation of the transaction speed due to scaling problems of the Ethereum blockchain network.
At the time of its launch, the OMG network was proposed as a decentralized scalability solution on Ethereum for use as a payments platform. The architecture and design of this solution became the basis for the Plasma Whitepaper, co-authored by Joseph Poon and Vitalik Buterin. Interestingly, OMG was the first project to conduct an airdrop, as a way to spread awareness and improve the utility of their app by distributing it more widely across the existing community.
What is OMG Network?
OMG Network, formerly known as the OmiseGo when launched in 2017, is a Layer-2 scaling protocol for Ethereum. The aim of the protocol is to achieve a higher transaction throughput at a lower cost while leveraging the security guarantees of its underlying layer. The main idea behind OMG Network is the concept of a child chain (Layer-2) that batches transactions before committing them to the root chain (Layer-1). The OMG Network supports Ethereum as the Layer-1 or the root chain. It is to be noted that in Layer-2 solutions, the child chain relies on its root chain as the trust and arbitration layer. This relationship is helpful in keeping the user’s funds safe in case anything goes wrong with the child chain. The primary method by which users can pay for transaction fees and interact with the network is the protocol’s native token OMG.
OMG Network is more than a side-chain and is an ambitious project targeted to develop a blockchain-based solution and software development kit that is able to simplify electronic payments in Southeast Asia. It can be used with popular wallets for real-time peer-to-peer asset trading and payments. OMG network facilitates the users to work with both crypto and fiat currencies. The network is designed to solve a fundamental problem deep-rooted in the current financial system: coordination between payers, payees, payment processors, and financial institutions.
Primary Intended Areas of Use:
- Money transfers: the network is designed to speed up and reduction in the cost of money transfers, especially where currency conversion is involved. Also, the network permits anyone to connect to the platform.
- Stablecoins: it facilitates the users in easy conversion of fiat currencies to crypto tokens and vice-versa. Additionally, this conversion doesn’t require the participation of financial institutions or any other cryptocurrencies.
- Loyalty programs: The platform allows users to tokenize loyalty points from various referral programs and store them in any wallet. These can then be consumed like any other token.
- Gift cards: As the OMG network is Ethereum-based, it can use smart contracts, making it easy to create gift cards that can be bought, sold, and transferred.
Benefits offered by OMG Network:
- Speed: ETH and ERC20 tokens can be transferred at a throughput of thousands of transactions per second.
- Environmental friendliness: As Compared to Ethereum, electricity consumption per transaction is reduced by 99%.
- Low cost: Transferring assets through OMG Network is 3 times cheaper than through the Ethereum network.
- Open-Source: OMG Network is open-source that allows anyone to use its code for creating new apps and developer tools.
- Security: Since OMG Network is based on the Plasma framework and it uses Ethereum as its root chain. This means that it relies on Ethereum for security and arbitration. Therefore, the OMG Network is as secure as Ethereum.
OMG Network is a non-guardian layer-two scaling solution for Ethereum. The project is headed by the OMG Foundation, which rebranded and partnered with Enya to build Boba Network, a new Ethereum layer-2 optimistic rollup that helps developers scale DApps. The OMG Network as such does not exist anymore instead Boba Network has inherited the OMG Network community.Within 3 months of the takeover, the OMG token surged more than 140% in anticipation of a revival of the project under a different name and leadership. Boba Network, while providing compatibility with Ethereum, claims to offer lower gas fees and improved transaction throughput. One of the advantages of this compatibility is reaped by DeFi and NFT applications. As claimed by the project, Boba Network offers an affordable platform to retail customers. Boba Network also offers fast exits backed by community-driven liquidity pools and a Boba NFT Bridge, which allows NFTs to launch on Boba and bridge to Ethereum cost-effectively. That way, users benefit from the security and decentralization of Ethereum and fast execution at low transaction costs on Boba.
How Does OMG Network Work?
The OMG network is based on a novel scaling solution called MoreViable Plasma. Like other Plasma implementations, it relies on a child chain architecture that maintains communication with the root chain by passing a hash or condensed block of transactions at periodic intervals, while at the same time allowing anyone to challenge the validity of a child chain transaction, which if proving fraudulent, leads to a reward. The communication between the child chain or Plasma chain and the root chain is maintained by smart contracts running in the root chain, where deposits and withdrawals (“exits”) are made — the smart contracts then replicate these assets on the child chain. By aggregating transactions before publishing them to the root chain, the solution decongests the Ethereum chain. Security is not sacrificed as users can claim their tokens through the block roots if for whatever reason the child chain stops creating blocks or its consensus mechanism fails. The whole process remains trustless with no centralized third party.
OMG network claims that this technology has the potential to scale Ethereum to thousands of transactions per second (TPS) — instead of the current 10 to 14 tps on Ethereum 1.0. The network is powered by the OMG utility token. This token can be used as one of the payment methods for fees on the OMG Network and eventually be stakable. Staking helps to secure the network in return for rewards.
Rollups are solutions that perform transaction execution outside the main Ethereum chain (layer-1) but post transaction data on layer 1. As transaction data is on layer-1, rollups are secured by layer-1. Inheriting the security properties of layer 1 while performing execution outside of layer 1 is a defining characteristic of rollups. There are two types of rollups with different security models:
- Optimistic rollups: assumes transactions are valid by default and only runs computation, via a fraud-proof, in the event of a challenge
- Zero-knowledge rollups: runs computation off-chain and submits a validity proof to the chain
Boba Network is an optimistic rollup combining the research and development by the Enya team on the swap-based onramp, cross-chain bridging, and fast exit with the open-source work by Optimism. On-ramp refers to exchange or another type of service that has the ability to offer fiat money in exchange for cryptocurrency and vice-versa. Boba Network is a child chain of Ethereum, meaning it benefits from the safety of its parent chain. Boba Bridge facilitates the easy transfer of assets from Ethereum to Boba and between different Layer-2 blockchains. In this case, users pay a small fee to the liquidity providers backing the swaps.
The Boba Network utilizes Enya’s privacy-preserving technology and the high-throughput and low fees of OMG Plasma. Boba relies on Secure Multi-Party Computation (SMPC), which enables collaborative data analysis without revealing sensitive data and makes it possible to conduct joint computations that keep data secure by retaining control over who receives verified outcomes. This structure is designed to support dApps that are fast, low-cost, and private. The Boba team chose to build on OE because the protocol is nearly identical to the Ethereum mainchain. As a result, EVM and Solidity compatibility persists, streamlining smart contract migration from Ethereum (Layer 1) to Boba (Layer 2). To introduce DAO governance to the Boba Network, the OMG Foundation is launching a Boba governance token (BOBA). As part of this initiative, holders of existing OMG receive BOBA at a 1:1 ratio via an airdrop, distributing the token to more participants and expanding the Boba ecosystem.
While Ethereum is expected to achieve scalability through Ethereum 2.0, the popularity of the network means there is already a great need for scaling solutions. Layer 2 rollups such as Optimism and Arbitrum are also hoping to help the network achieve scalability. By deploying smart contracts on Layer 2, applications based on the Ethereum Virtual Machine consume low gas fees and have much higher throughput. These solutions process transactions off-chain and publish transactional data on Ethereum. As a result, they can help developers create more scalable dApps for use cases like DeFi and NFTs.
The project will compete with Optimism, Arbitrum, and other Layer 2 solutions like StarkWare. The differentiating feature for this project is fast transfers from to Ethereum mainnet to Boba. The Enya team claims that the Boba Network will reduce withdrawal times from seven days to a few minutes.
For security and decentralization, the team has confirmed that there will be no multi-sig wallet for bridge assets. The team is yet to share in-depth details on the technical architecture. The project’s governance will be overseen by a decentralized autonomous organization (DAO), which will suggest and vote on improvements to the network.
What Is Quasar Smart Contract?
Quasar Smart Contract is the solution to one of the biggest challenges faced by layer-2 blockchain projects; it takes around 14 days to move the asset to layer 1 from layer 2. OMG Network uses its Plasma layer-2 scaling solution to get past the issue of layer-2 blockchain scalability. It enhanced its Plasma solution to transform it into Quasar. Every layer-2 blockchain that uses fraud proofs faces the ‘exit period challenge.’ OMG Network also faces the problem, but its Quasar Smart Contract approach enables ‘fast exit.’
What Makes OMG Network Unique?
Boba’s key value offer is multifold. On the one hand, high gas fees on Ethereum are an incentive to build on layer-2 solutions like Boba. On the other hand, Boba promises to create an ecosystem fund to incentivize early-stage projects with exciting ideas. Boba chose Optimism since it is easier to stay in sync with the evolution of Ethereum by building on this scaling solution.
A key advantage of Boba is its Fast Exit solution, providing users with the possibility to withdraw their funds earlier than the usual seven days on Optimism by paying a convenience fee. The network chose to rely on market forces to optimize for efficiency in this case. Boba also offers a bounty program with payouts of up to 100,000 USD depending on the severity of the discovered bug.
Bridging on Boba aims to be fast and simple and can be done by connecting the user’s Metamask (or any other web wallet) to the network’s bridge and transferring the funds from Ethereum to Boba. However, Ethereum gas fees will still apply for this transaction, which is why users should make sure to have enough funds for the transaction to go through.
OMG’s Price History
When the OMG token first appeared on the crypto market in July 2017, it was worth $0.68. Shortly after that, the price experienced a sharp rise, peaking at $12.53 on 7 September, 2017. This was followed by a correction; in early November, the price reached a local low of $5.55. Following this, during the crypto market’s bull run in November-December 2017, the price soared to its all-time high of $27.77 on 8th January, 2018.
OMG Network Price Analysis
According to PricePrediction, the current price of OMG Network is $4.10. As per Messari.io, OMG is currently ranked #98 in all the Assets and #2 in the scaling category. The circulation supply of OMG Network is 140,245,398.25 with a market cap of $575,262,807.76.
Price Performance in Past 24 Hours: In the past 24 hours, the OMG token’s price has been decreased by -0.84% in its current value. If we compare the current market cap of the OMG with yesterday’s, you can see that the market cap is also down.
Price Performance in Past 7 Days: In OMG Network is facing a hard time getting on board with other crypto coins. The OMG is down to almost -12.87% in the last 7 days. The coin is still showing risking framing segments for the past few days, the coin might have strong fundamentals but, we don’t think that it would a profitable asset in short term.
Price Performance in the Past 1 Month: Within the last one month, the price of OMG has decreased by
–3.903%, eliminating a whopping average sum of $1.52 from its current value. This sudden down means that the coin is in dip right now, meaning that it can be a good buy opportunity for quick investment.
Price Performance in Past 90 Days: The 90 days price change is around -59.14% and the price circulated from a minimum average price of $11.53 to maximum average price of $12.20 in the past 90 days.
Price Performance in Past 4 Months: In OMG Network is down by -66.27% with the maximum average price of the coin was around $14.70 and the minimum average price of was around $13.70 in past 4 months.
OMG Network (OMG) Price Prediction for 2022-2031
Below we present the price prediction of the OMG Network (OMG) Token for 2022-2030. This analysis is taken from PricePrediction.
OMG Network Price Prediction 2022: According to PricePrediction, in 2022 the price of OMG Network is predicted to reach at a minimum level of $6.62. The OMG price can reach a maximum level of $7.88 with the average trading price of $6.87.
OMG Network Price Prediction 2023: The price of OMG Network is predicted to reach at a minimum level of $10.03 in 2023. The OMG Network price can reach a maximum level of $11.88 with the average price of $10.37 throughout 2023.
OMG Price Forecast for 2024: According to PricePrediction, in 2024 the price of OMG Network is predicted to reach at a minimum level of $14.26. The OMG price can reach a maximum level of $17.19 with an average trading price of $14.78.
OMG Price Forecast for 2025: The price of 1 OMG Network is expected to reach a minimum level of $20.88 in 2025. The OMG price can reach a maximum level of $24.39 with an average price of $21.47 throughout 2025.
OMG Network Price Prediction 2026: OMG Network price is forecast to reach the lowest possible level of $30.33 in 2026. As per our findings, the OMG price could reach a maximum possible level of $36.98 with the average forecast price of $31.19.
OMG Network Price Prediction 2027: According to PricePrediction, in 2027 the price of OMG Network is forecasted to be at around a minimum value of $44.52. The OMG Network price value can reach a maximum of $52.46 with an average trading value of $45.77 in USD.
OMG Network (OMG) Price Prediction 2028: The price of OMG Network is predicted to reach at a minimum value of $61.67 in 2028. The OMG Network price could reach a maximum value of $76.79 with the average trading price of $63.96 throughout 2028.
OMG Network Price Prediction/Forecast 2029: According to PricePrediction, in 2029 the price of OMG Network is expected to reach at a minimum price value of $88.84. The OMG price can reach a maximum price value of $109.06 with the average value of $92.03.
OMG Network (OMG) Price Prediction 2030: The price of OMG Network is predicted to reach at a minimum value of $132.67 in 2030. The OMG Network price could reach a maximum value of $158.83 with the average trading price of $136.35 throughout 2030.
OMG Network Price Prediction 2031: OMG Network price is forecast to reach the lowest possible level of $185.59 in 2031. As per our findings, the OMG price could reach a maximum possible level of $227.70 with the average forecast price of $192.41.
Without implementing successful scaling mechanisms, major blockchain platforms like Bitcoin and Ethereum would technically be unable to achieve the high-volume utility of global transaction layers like that achieved by Visa. In fact, both Bitcoin and Ethereum have already encountered congestion issues, backlogs, and periods of increased fees on multiple occasions. Scaling has been a subject of intense scrutiny and development in the blockchain industry.
There are several projects building scaling solutions for Ethereum that champion two primary methodologies. State channels like Raiden and Celer Network create Ethereum-adjacent blockchains that transport Ethereum data off-chain for transactions and return back generalized-state data reports. Sidechains like OMG Foundation use the Plasma method of layering a centralized, but transactionally efficient mirror chain on top of the Ethereum network, where bulk transactions are executed before being sent back to Ethereum for final validation.
OMG Network’s value is expected to continue to expand, as shortage tends to encourage price rise. In terms of price, OMG Network has an outstanding potential to reach new heights. It is forecast that OMG will increase in value. It is estimated that OMG Network can hit the highest price of $227.70 till 2030. Please note, there is some risk to any investment. Just invest in what you can accomplish before coming to any conclusions and conduct the maximum research possible.