Blockchain technology’s potential to solve existing issues and realize substantial efficiency is not limited to the financial field. A lot of projects have appeared in recent years, and the possibilities they offer are attracting attention. This article will introduce OmiseGO.
What is OmiseGO?
「”OmiseGO” is a settlement platform utilizing blockchain, developed by the credit settlement system “Omise” popular in Southeast Asia. Vitalik Buterin, developer of Ethereum, has joined as an advisor, so this project has a lot of potential.
If someone makes a transaction using a different financial institution, such as transferring to a different bank account, multiple settlement networks will charge a transaction fee. When this happens, the user has to deal with both a fee and a wait while the transaction processes. In order to solve these problems, OmiseGO’s project developed “OMG chain” as a unique blockchain that allows mobile payment by connecting two or more block chains.
Users remit money by holding an “e-wallet” on the OMG chain. The token used for remittance is issued with an “e-wallet settlement provider (EPP)” backed by the value of the legal currency. Users can exchange tokens based on legal currencies using the e-wallet, enabling mobile payment.
Collaboration with Ethernet Blockchains
When exchanging different cryptocurrencies or tokens on the OMG chain, using ETH as an intermediate currency enhances the liquidity of the transaction. Essentially, the token is exchanged via Smart Contract on Ethereum and the settlement is executed on the OMG chain.
Exchanging different tokens on the block chain is called “distributed exchange” – in contrast to a centralized cryptographic currency exchange. With e-wallet, you can exchange tokens on the OMG chain, as well as exchange tokens with legal currency supported by other cryptocurrencies and tokens through distributed exchanges.
Goal of OmiseGO
Approximately 2 billion people worldwide do not have a bank account. Providing a smartphone-based wallet application that allows easy mobile payment is one way to enable safe storage of money to these individuals.
In the future, if various companies and governments acknowledge e-wallet settlement providers, it is possible that OmiseGO could further spread. OmiseGO is already installed in many stores in Southeast Asia as a credit settlement tool. Users can build a new economic zone centered on their own wallet. “OmiseGO” by combines compatible block chain technology with the financial sector.
The Future of OmiseGO
OmiseGO aims to collaborate with multiple projects utilizing blockchains such as Golem, Cosmos, Tendermint, and Ethicalam. We will update on future technical announcements and detailed technological features (such as OmiseGO security, etc.) as the information becomes available. We look forward to finding out what OmiseGO is capable of.