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
Perhaps the bigger news of this release is the integration of Tether (USDT) in partner with the issuing entity Bitfinex. For those who don’t know, USDT is the largest stablecoin on the market, currently boasting an $8.7B market cap with more than 60% of that supply being represented as an ERC20 token.
— Bitfinex (@bitfinex) June 1, 2020
With OMG Network, Tether is able to take advantage of OMG Network’s More Viable Plasma (MoreVP) scaling solution, increasing throughput from Ethereum’s current limit of ~12 transactions per second to what OMG is claiming “A high throughput of thousands of tps with 1/3rd the transaction cost”.
What’s To Know?
For those who have been keeping up with Layer 2 scaling, you’ve probably noticed a recurring theme of batched transactions. Best exemplified by Optimistic Rollups as seen in test environments like Synthetix’s Layer 2 Exchange, OMG Network groups transactions together on a Plasma “childchain”, all of which are then batched and routed to the Ethereum parent chain.
To participate and decentralize this process, OMG Network will introduce the role of “watchers” or validators who post a stake in the form of OMG tokens to batch and route transactions on behalf of childchains.
The news of the V1 Mainnet Beta comes just a few short weeks after OMG was listed on Coinbase – prompting a 100%+ surge in price in a matter of days.
OmiseGO (OMG) is launching at https://t.co/bCG11KMQ6s and in the iOS and Android apps within the next 15 minutes. You may need to update your app to properly buy, sell, convert, send, receive, or store OMG. We will update when OMG is fully live. https://t.co/StFZX4AzYf
— Coinbase (@coinbase) May 21, 2020
Later tonight, OMG Network will be debuting the “Proof of Life” launch during the Messari Virtual Summit which can be viewed using the following link.
Ethereum Congestions Scaling
As we continue to embark on the journey to ETH 2.0, the launch of OMG Network comes at a much needed time as Ethereum desperately begs for increased throughput.
For those who have yet to suffer from the extremely high gas prices, the recent surge in demand for ETH has clogged up the network, with gas demand currently reaching an all-time high.
#2: More than 60 billion gas is now being used on a daily basis — a sign that Ethereum blockspace demand has never been higher. pic.twitter.com/WHdJqY5idN
— Spencer Noon (@spencernoon) May 26, 2020
According to ETHGasStation, Tether has long since held the lead for most gas used, spending nearly $2M on transactions at any average price of 38.5 Gwei. This goes to say that with the introduction of OMG Network and the partnership with Bitfinex, we should see this spike drop – thus freeing up the network for more use among other DeFi protocols.
If one thing is for sure, the long-awaited launch of OMG Network comes as a positive sign for the Ethereum ecosystem. However, as a last word of caution – OMG Network is still in beta and remains experimental.
In the meantime, be sure to stay up with OMG Network on Twitter.
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.