OMG!! NEXT Ethereum Scaling Solution? ⚡️

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– TIMESTAMPS –
0:00 Intro
1:56 What is the OMG Network?
4:47 Why Layer 2 is Needed
7:10 What is Plasma?
9:13 OMG’s MoreVP
11:32 OMG Token Overview
13:14 OMG Economics
15:19 Token Trading
16:48 Tether Integration
18:40 Conclusion

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⛓️ 🔗 Useful Links 🔗 ⛓️

► OMG Network: https://omg.network/
► GitHub: https://github.com/omgnetwork
► Layer 2 Scaling: https://omg.network/plasma-childchain-sidechain/
► Guide to Plasma: https://www.learnplasma.org
► Plasma Whitepaper: https://plasma.io/plasma.pdf
► OmiseGo Raise: https://plasma.io/plasma.pdf

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📝 What is the OMG Network? 📝

It is a layer 2 scaling protocol for Ethereum. It aims to achieve higher transaction throughput at a lower cost all while leveraging the security guarantees of the Ethereum network.

Basically, its a scaling protocol that has built on the Ethereum Plasma framework and made it more secure and practical.

Omise is an online payment gateway based in Thailand that was founded in 2013 by a chap called Jun Hasegawa. In 2017, they decided to do an ICO and start a crypto project. During the ICO, they were able to raise $25 million in exchange for 65% of the OMG token supply

💭 What is Plasma? 💭

It is scaling framework that was first envisioned by Vitalik Buterin and Joseph Poon back in 2017. It’s a framework which provides a number of different tools that other blockchains use in order to build their own layer two solutions.

These layer 2 solutions on Plasma are called “child chains” and they are not be confused with sidechains. Unlike the latter, Plasma chains are fully trustless, rely on Ethereum smart contracts for security and are well optimized for settlements and throughput.

The OMG network has made a few of their own changes to Minimum Viable Plasma and have called this ‘MoreViable Plasma’. It shares most of the same properties except for one user improvement.

🤔 What is MoreVP? 🤔

Its a separate childchain network that sits on top of the main Ethereum (root chain). Essentially, the child-chain receives transaction requests from users, validates them, and assembles them into blocks that it publishes back to root chain.

Its a separate childchain network that sits on top of the main Ethereum (root chain). Essentially, the child-chain receives transaction requests from users, validates them, and assembles them into blocks that it publishes back to root chain.

Plasma Chains are able to guarantee the safety of user funds even if the consensus mechanism fails. This is due to their unique exit mechanism. To exit the child chain, a user submits an exit transaction and an exit ‘bond’ to the root chain.

⚡️ OMG Token ⚡️

OMG is an ERC20 utility token within the OMG network. The primary purpose of the token will be to stake it when the network transitions to a proof of stake model.

Those who hold OMG will be able to gain the right to take an active role on the network by running validator nodes using their tokens as a security deposit. They will receive compensation for their active participation in the network. This fee paid to the validators does not have to be in OMG.

What is important to note here though is that the token supply is fixed at 140 million. There is no inflationary aspect built into the protocol. This has important implications about the long-term value of the token.

📈️ Price Impact 📈

there is a fixed supply of 140 million tokens. This will not be increased or inflated away through any new issuance through block rewards. This places a natural limit on the total tokens on the market and drives scarcity of the token.

Once staking is launched on the network, users will be locking up OMG in order to stake. Although users are able to pay for fees in any other currency, they do require OMG to stake. The more network demand, the more users are paying the nodes to secure said network and hence the more chance to earn fees.

From a fundamental perspective, you have more demand to stake and a lower supply on the market. Putting these two together and you have a potential price increase.

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📜 Disclaimer 📜

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.

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