OMG Network

What is OMG Network (OMG)?

OMG Network is a layer-2 scaling solution for the Ethereum blockchain that uses a novel technology called MoreViable Plasma. It was once referred to as “OmiseGo” and is rebranding as “Boba Network.”

Ethereum is one of, if not the, most popular blockchains in the world, with a massive and ever-growing ecosystem of decentralized applications built upon it. However, periods of high traffic have shown that Ethereum may lack the scalability to effectively host these platforms in the long term.

This problem has given rise to a large number of projects looking to help Ethereum scale to meet the demands placed upon it. These various scaling systems deploy several different methods and solutions toward the same end goal, with one of the most common being “Rollups.”

However, scaling is a question of niche. While Optimistic Rollups focus on smart contracts, OMG Network’s Plasma solution attempts to scale token transactions. For this reason, it began to lag behind competitors and was eventually forced into adopting an Optimistic Rollup technique instead under the name Boba Network.

Who are the Founders of OMG Network?

OMG Network was founded by a Thailand-based fintech firm called SYNQA, which was formerly known as Omise Holdings. For this reason, the project started in 2017 under the name OmiseGo. Now, OMG Network is called OMG Foundation.

Meanwhile, the Boba Network was founded by Alan Chiu, a member of the Alumni Board of the Stanford Graduate School of Business. Chiu is the CEO of Enya, which is building the Boba Network as a core contributor to the OMG Foundation.

How Does OMG Network Work?

OMG Network uses Plasma as a scaling solution, but Plasma itself doesn’t just have one form. Rather, OMG uses a specific variant of Plasma called MoreViable Plasma (MoreVP), which is an extension of the Minimum Viable Plasma (MVP) design.

The basic MVP specification, as authored by Ethereum founder Vitalik Buterin, enables high-throughput payment transactions. However, it does not support more complicated constructions like scripts or smart contracts.

MPV relies on confirmation signatures, where users need to sign before making a transaction, wait to see if it is included in a valid block, then sign again. Both signatures are included within a Plasma block.

MoreVP removes the need for these confirmation signatures, making more of the Plasma block available for transactions.

These blocks are what make Plasma scalable. OMG Network is a layer-2 blockchain, and transactions are processed on these layer-2 Plasma blocks. A good number of these transactions are then batched into a single submission on the Ethereum blockchain.

With its latest evolution, OMG Network is being rebranded to Boba Network, and Plasma is being set aside in favor of Optimistic Rollups.

What Makes OMG Network Unique?

One of the main reasons Ethereum is considered so dominant in the blockchain industry is that it introduced and successfully implemented smart contracts. This has allowed developers to construct entire networks of decentralized applications atop Ethereum.

The main objective of the OMG Network was to reduce Ethereum congestion, which it is heavily optimized to do in the area of payment settlements and transactions. However, it soon found itself left behind—such is the importance of smart contracts to scaling Ethereum.

For that reason, BOBA focuses on Optimistic Rollups, which do support smart contracts. One of the main advantages that Boba Network brings to the table is a solution called Fast Exit.

Fast Exit allows users to withdraw funds earlier than the 7 days they need to wait on Optimism, the main Optimistic Rollup solution for Ethereum. This is accomplished by letting users pay a convenience fee into community-driven liquidity pools.

Boba Network also features Hybrid Compute technology, which allows smart contracts to call any off-chain API. This gives developers the best of both the Web3 and Web3 worlds to build compelling dApps.

How is the OMG Network Network Secured?

OMG Network can be viewed as a “child chain” to Ethereum rather than a sidechain. This is an extremely important distinction in terms of security because sidechains are independent and responsible for their own security. So you don’t have to compromise Ethereum in order to take down a sidechain. However, child chains like OMG Network work a little differently. The OMG Network is a non-p2p, proof-of-authority network controlled by a block producer node called the Operator. Security on the OMG Network is based on Ethereum smart contracts and a decentralized Watcher network.

OMG Network is also referred to as a non-custodial layer-2 scaling solution because users are always in control of their own private keys and funds. They can withdraw funds from the OMG Network to Ethereum at any time, even if the Operator goes offline. OMG Network is often described as “trustless” because of this feature, and users don’t need to trust the Operator with their funds.

Boba Network simplifies things on the consensus side because it takes the form of a series of smart contracts. Therefore, it can still be considered a child chain, but it relies purely on the security of Ethereum itself.

What is the Use of OMG?

OMG token holders were airdropped BOBA tokens in November 2021, reflecting the project’s change in direction and desire to retain the OMG community. 28% of the BOBA supply went to OMG holders in this airdrop.

The BOBA token is what powers the BOBA DAO, putting platform governance in the hands of the community while the company behind the project acts as a core contributor.

How Much OMG is In Circulation?

OMG has a circulating supply of just over 140 million tokens, and its entire supply is in circulation.

A very large proportion of the token supply was distributed to investors. They claimed over 65% of the supply, while the founding team was allocated 9.9% of the token supply. All of these tokens were locked for one-year post-launch.

20% of the OMG supply was locked in the project’s reserve smart contract, and the final 5% of the token supply was distributed in an airdrop.

How Do You Buy OMG?

You can buy OMG tokens on several cryptocurrency exchange platforms. Some top exchanges participated in the BOBA airdrop, but a handful did not. This remains one of the many risks of holding tokens on a custodial platform.

If you prefer non-custodial solutions, you can also buy OMG on decentralized exchange platforms like Uniswap and Sushiswap.

How Do You Store OMG?

You can store OMG tokens on the OMG Network web wallet, but given the project’s transition to the BOBA Network, a third-party wallet may be a good idea. Luckily, OMG tokens are deployed on Ethereum, so you have your pick of wallet options, including Ledger devices and the Metamask wallet.

Is OMG a Good Investment?

Currently, there doesn’t appear to be a very good reason to buy OMG tokens aside from the linkage between OMG and BOBA. However, this makes choosing a storage solution very important since some custodians are loath to let their customers receive airdrops and other benefits.

BOBA, meanwhile, is a project with some promise. It appears to be a direct competitor to Optimism, but with several notable differences, including a compelling Fast Exit feature.