OMG basics

Last updated 4 months ago

Please note: the OMG Network is still in development, and some details cannot yet be included. This knowledge base will be revised regularly to include updates and additional details.

OMG consists of several layers:

White-label Wallet Software Development Kit (SDK) The SDK provides standardized features to so-called digital wallet service providers. We will add more and more to this top layer as a “standard base” for others to build applications upon. While we must start somewhere, it is our ultimate goal to simplify the creation of new digital wallets to the point where they require little to no developer support.

Decentralized Exchange (DEX) The DEX is a scalable and secure Proof-of-Stake blockchain on which any form of digital asset can be traded. All transaction orders will be managed on the DEX chain and validated by OMG stakers (as part of the Proof-of-Stake, or PoS, consensus), who collectively and dynamically determine the fees that are necessary to keep the network running, similar to how Ethereum or Bitcoin miners currently determine this (but without the energy waste and other objections to Proof-of-Work mining). The exchange will also be able to provide interoperability for all Ethereum tokens and for any Bitcoin (or Bitcoin-like) blockchain for fully on-chain cross-chain exchange.

Scalability Network Mechanism Above all else, OMG is a scaling solution for Ethereum nance. OMG was designed for the Plasma architecture, which structures blockchain computation into MapReduce functions and uses a combination of proof-of-stake token bonding, fraud proofs to reduce the costs of computation, a withdrawal design to efficiently counter network attacks, and the network security provided by Ethereum as the root chain to safely enable unprecedented transaction and on-chain exchange processing speed and scale.

Decentralized Cash In/Out Layer The OmiseGO digital wallet SDK allows integration with debit and credit cards for top-up and cash-out options, via ATMs or over-the counter. Our goal with cash in and cash out touch points is to create a network of banking, hardware, and retail partners where users can deposit and withdraw their cash. The cash becomes tokenized on to their wallet application of choice, and is immediately exchangeable for other tokenized currencies and assets via the OmiseGO blockchain.