Southeast Asian blockchain company OMG have announced the launch of public mainnet based on Plasma, a Layer-2 scaling solution for Ethereum that promises faster and cheaper processing of transactions.
You’ve been waiting for it, we’ve been waiting for it, and well, soon™️ is here! We present to you the OMG Network V1 Public Mainnet Beta 🚀 It is a fully trustless, low cost, high throughput way to transfer value at the same level of security as Ethereum. https://t.co/M8Qbk8s16N
— OMG Network (@omgnetworkhq) June 1, 2020
Three years after raising $25 million in a successful initial coin offering (ICO) under the name of OmiseGO, the rebrand to OMG Network follows the parent company’s official change from Omise to SYNQA.
The team at OMG are now confident their new network “…scales Ethereum to thousands of transaction per second while simultaneously reducing transaction fee to 1/3rd…”
Unbank the Banked
With a payment service provider as a parent company, OMG were originally marketed as a means to combine currency exchange and payments in real time, providing a groundbreaking freedom of choice in currency to both buyer and seller which promised to shatter the constraints of traditional banking. The original whitepaper even carried the byline of “Unbank the Banked with Ethereum.”
Improving the scalability of Ethereum has always been the intention of OMG and it was one of the few projects that Ethereum founder Vitalik Buterin agreed to become an advisor for.
Unlike Loopring, who utilise zkRollups in Layer-2 to scale transactions, OMG chose a different design to tackle the problem and have implemented the More Viable Plasma (MoreVP) specification.
As Kasima Tharnpipitchai, OMG Network CTO, explains “MoreVP trustlessly scales Ether and ERC20 transactions by grouping them together and sending them through a set of Ethereum smart contracts. These grouped transactions are then verified and validated by a decentralised network of watchers. Processing batched transactions enables a high throughput of thousands of tps and results in 1/3rd the transaction cost for the end user – all with Ethereum-level security.”
With a new public mainnet, wallet, website and block explorer, OMG have attracted considerable interest from other notable entities within the blockchain sector.
This month’s listing on the Coinbase exchange saw a correlating rise in OMG token price while Bitfinex’s announced that they will utilise plasma for Tether transactions as they seek to benefit from the cost savings and improvement in performance.
— Bitfinex (@bitfinex) June 1, 2020
Naturally, the progress of Layer-2 implementation has not gone unnoticed by Vitalik Buterin.
While everyone wasn’t looking, the initial deployment of ethereum’s layer 2 scaling strategy has *basically* succeeded. What’s left is refinement and deployment. A thread: https://t.co/30Dfr9XmFs
— vitalik.eth (@VitalikButerin) June 1, 2020