OMG Network (formerly OmiseGo) is a non-custodial, layer-2 scaling solution for Ethereum. It enables faster and more cost-effective transactions for ETH and ERC20 tokens. It addresses the scalability issues of Ethereum by allowing faster and more cost-effective transactions for both ETH and ERC20 tokens compared to direct transactions on the Ethereum network.
OMG Network implements a groundbreaking scaling solution called MoreViable Plasma, utilizing a sidechain architecture. This innovative approach allows multiple transactions to be grouped off-chain into a batch, subsequently verified as a single transaction on the Ethereum root chain.
By leveraging this technology, OMG Network aims to significantly enhance Ethereum's transaction processing capacity, potentially scaling it to thousands of transactions per second (TPS). This is a notable improvement over Ethereum 1.0, limited to 10 to 14 TPS.
The utility token within the OMG Network ecosystem is $OMG. It is a payment method for network fees and can be staked to participate in the network's Proof-of-Stake (PoS) consensus mechanism.
