OMG – Solution to Ethereum Scalability – Catching News
A problem with most of the blockchains are its scaling. The transactions are expensive and require a lot of fee to process them. OMG network is a layer 2 scaling solution for Ethereum which allows the users to transfer their Eth and ERC tokens much faster and at a very cheap rate when the transactions are on the same blockchain.
MoreViable Plasma is a solution that allows many different transaction to be considered as a batch and then carry out the whole batch transactions. According to the OMG project this technology has the potential to greatly increase the number of transactions on the Ethereum Network as compared to 10-14 transactions that Ethereum is currently capable of.
At the time OMG network consists of about 50 members. The project thinks that the high congestion and high transaction fees needs to be overcome before the retailers want to transfer their businesses in the blockchain. The project aims to solve this problem by using MoreViable Plasma technology. This technology can reduce the use of electricity and the fee by around 99% and by 2/3rd respectively.
During the ICO (initial coin offering) OMG raised about $25M which are used to support the operation of the project.
Around 65.1% tokens were distributed to investors, 29.9% are held by the team and the remaining 5% were airdropped to the users. The maximum supply is 140M coins. The current circulating supply is maximum.
At the time of writing OMG is being traded at the price of $15.16 with an increase of about 7.81% in the past 24 hours. The trading volume has increased by almost 165.82%. It is listed on coinmarketcap and holds the 62nd spot according to market dominance and total market capital.
Long Term Investment
OMG coin is considered a sound investment. According to wallet investor, in a year the price is expected to go to around $19.325. In a five-year plan, the price is expected to reach a level of $40.749.
In the future If Ethereum becomes mainstream, we are going to see a lot of traffic on the network. As such we can expect the price of OMG to show reasonable growth because at that time OMG will surely help in keeping the traffic low by allowing cheaper and faster transactions. OMG has its All-Time High around the price of $18.212 which it created this month on 4th October 2021.