What is Omni?
Have you been looking at cryptocurrencies and wondered how complicated it is to release your token? Omni makes the process easy and direct.
Omni is a blockchain based platform for designing and trading custom digital assets. It is a decentralized digital layer built on top of the Bitcoin blockchain. Omni transactions are Bitcoin transactions designed to help enable the next generation features on Bitcoin system and indeed, the entire blockchain market. The Omni Core provides users with all the features found on the Bitcoin Blockchain plus additional Omni Layer based features such as a decentralized exchange.
The link between Mastercoin and Omni
The Omni network also has its native coin referred to as OMNI that you can trade in the cryptocurrency markets. The platform was first proposed by Willett J. in 2012 when he suggested that another layer can be added on top of the Bitcoin protocol to enjoy the benefits of Bitcoin and introduce new features.
The native coins started trading in the markets as Mastercoin at around $133.5 and shot to $181.3 in the last days of December 2013. This figure turned out to be the highest mark in the Omni long journey to 2018. In 2014, Omni (operating as Mastercoin) was ranked seventh of all cryptocurrencies. Mastercoin name was changed to Omni in 2015.
The price of OMNI shot down with over 4000% by September 2014 and remained below $5 until April 2017. It shot up to $104.3 in January 2018 before taking a steady drop to around $7.5 in August 2018. The community has indicated that despite the sharp drop, the $7.5 mark is still 200% higher than the 2014 price. The price is expected to grow to higher levels in the coming years.
What is the problem that Omni Solves?
When cryptocurrencies debuted, many people did not know about them. However, they have come to appreciate the huge potential of decentralized networks over time and want to adopt them. But it is not easy. Here are some of the top problems facing the blockchain niche that Omni targets to address.
Centralized trading
When Bitcoin entered the market, it demonstrated that running transactions on a peer2peer basis without involving a centralized operator is possible. The benefits of centralized operations included reduced inventory, near instant transactions, and lower costs. Even with these benefits, sending value from one network to another has become highly centralized. To send Bitcoins to another network such as Loopring or EOS, a third party exchange has to be involved.
Third-party exchanges have become crucial targets for hackers because traders’ assets are pooled together in the same vault. In 2011, MT. Gox was attacked, and millions worth of Bitcoin lost. In December 2017, YouBit was hacked and forced to file bankruptcy.
In addition to being a serious security risk, centralized exchanges have become a crucial point for accessing traders’ private data. They are negating the core goal that blockchain projects were created to achieve.
Creating digital tokens is very complex
Every time that a new token is announced, interested investors flock the exchanges to invest. For those who want to issue tokens, the process looks complicated and near impossible. Thoughts of the lengthy coding process, a long list of developers, legal connotations, and the required funds make people step back. Omni developers want to make this process easy and reliable.
Technical crowdfunding
People with projects, business ideas, or want to grow their businesses are always looking for new methods of raising funds. One of the best methods of raising funds is crowdfunding. Some of the successful crowdfunding events include EOS that raised $4 billion in June 2018, Filecoin that raised $257 million in September 2017, and Flow Hive that raised $13.2 million in April 2015. But many people will always wonder where one should start to crowdfund. This is the problem that Omni is coming to address.
How does Omni Solve the problem?
The design of Omni was primarily driven by the desire to address the emerging deficiencies of Bitcoin. Willet believed that though Bitcoin was delivering the decentralized services Satoshi had anticipated, the road ahead was rough, and improvements were needed. But introducing his suggestions to Bitcoin was difficult because the consensus model made it extra difficult for nodes to agree. Therefore, he proposed the use of an additional layer on top of the Bitcoin blockchain.
A ready platform for custom currency creation
The growing demand for Bitcoin made the Omni founder and development team arrive at an early conclusion; the demand for new custom currencies would grow exponentially. Their assertion was right because more than 1600 digital assets had entered the crypto markets by 2018.
To quench this insatiable demand, Omni provides users with a platform to easily create tokens and launch them on the Bitcoin blockchain. The simplicity provided by Omni has made it the top Bitcoin-based token protocol. Some of the 390 tokens created using Omni include Craig, MaidSafecoin, Zend1, ProzCoin, and Gemcoins.
Omni layer serves as a platform for crowdfunding
If you have been thinking of crowdfunding, Omni makes the entire process easy and direct. The layer was developed to help users create the preferred tokens faster and reach the clients directly. The platform allows users to send Bitcoins to the issuer address and the Omni Layer automatically sends the tokens to the client without requiring a third party. Some of the crowdsales held at Omni include SymChain and ProzCoin.
The distributed exchange
While the core goal of blockchain networks has been to foster distributed operations, centralized exchanges such as Bittrex and Binance among others make it almost impossible. The Omni distributed exchange provides users with an opportunity to send their coins on a peer2peer basis. All that you need is having coins that are based on the Bitcoin blockchain and an Omni supported wallet to exchange the tokens without involving a third party.
What makes Omni better than its competitors?
The competition in the cryptocurrency niche has become very stiff. As more cryptocurrencies enter the market, it is becoming a serious race to win a bigger share. But Omni appears to have won a lot of trust from the community as evidenced by the large numbers flocking to make new tokens and crowdfund. Here are some of the key things that make Omni better than competitors.
- Omni has been in the market for longer and its stability approved. As more cryptocurrencies enter the market, the focus has shifted to trust. Having been in operation since 2013, the structure and features of Omni have been tested and proven stable. Even though the price of OMNI has not skyrocketed like that of Ethereum or Bitcoin cash, its structures are considered stable than newer blockchains.
- The Omni platform has greatly simplified the process of joining and making optimal use of the blockchain technology. Whether you want to crowdfund or issue tokens for your project, the Omni layer makes it very simple. This implies that you can now easily raise funds for your project or business and take it to the next level.
- Omni is directly associated with Bitcoin protocol. While a lot of cryptocurrencies have been entering the market, none has managed to reach the charm of Bitcoin. Even the Ethereum that introduced smart contract is still trading at far less the price of Bitcoin in the markets. With Omni being seen as an improvement of Bitcoin with an additional layer, people have developed a lot of trust in it. This is why it is commonly referred to as the main candidate that can easily fit in the shoes of Bitcoin.
- The association of Omni to Bitcoin has greatly extended its use in the markets. In most of the places where the Bitcoin is accepted for payment, Omni is also likely to be accepted. However, people enjoy using Omni because they can even exchange it for Bitcoin or other exchanges for direct purchases.
How can Omni be categorized?
Omni protocol is the next generation cryptocurrency designed to help redefine the crypto industry and move the blockchain technology to the next level. The platform, though launched early in the Bitcoin cycle, appears to have conceptualized the solutions to the issues rocking the blockchain niche rocking the industry today. From decentralized exchange to support for faster token generation, Omni is a solution and a reliable pioneer.
What’s Omni’s vision on Security?
The Omni vision for security is to guarantee its platform users optimal security for their personal information, tokens, and funds when using the operational layer. The security of Omni was a primary consideration when Willett proposed that a new layer could operate on top of the Bitcoin blockchain. He was especially cognizant that though attacks such as Mt. Gox took place in the exchanges and not at Bitcoin platform, extra caution was needed. Therefore, the Omni development team adopted the following strategies to keep the platform more secure.
- The development team works on progressive development that identifies gaps and closes them with regular updates. In August 2018, three main updates including Omni Core Version 0.3.1 were released to improve the network security.
- The platform operates as an additional layer on the Bitcoin platform. This implies that those targeting to break into the network have to overcome the Bitcoin and Omni layer which is very difficult.
- The transactions and user details on the Omni layer are highly encrypted to make it impossible for third parties to access user information. Even the miners on the Bitcoin blockchain who help to confirm transactions only follow back to check the balances on the public address. However, they cannot access personal information.
- As an extension of Bitcoin, it implies that the wallets that support BTC will also support Omni by default without requiring additional configuration. With these wallets being some of the oldest in the market, Omni users are sure of enjoying all associated security features for extra safety.
Examples of Omni’s use cases / applications
Having been in the market for a longer period and riding on the Bitcoin platform, Omni use cases are indeed many. Note that they include the application of the protocol layer and its native cryptocurrency.
- Use Omni to generate new tokens: The Omni protocol is used to easily generate new tokens and releasing them on the Bitcoin platform. If you want to make a mark in the blockchain network, simply use Omni to generate tokens.
- Crowdfunding for projects: Funding projects through IPO (initial public offering) or borrowing from banks is lengthy, complicated and at times impossible. Indeed, core determinants of such processes are third parties who are not in any way related or interested in the applications. However, Omni crowdfunding allows users to take full control of the financing process.
- Direct purchases in the online marketplaces: Like other cryptocurrencies, you can use the native Omni token for direct purchases. Most of the stores that accept Bitcoin are also likely to accept Omni. Even if a different coin is listed, you can easily convert OMNI token to make a purchase.
- Paying taxes in countries that accept cryptocurrencies. Unlike in the past when most jurisdictions advised their citizens to stay away from cryptocurrencies, things have changed so much today. More governments are realizing that blockchain platforms can help them to address issues such as Big Data and advance artificial intelligence. The governments have even started opening the doors and allowing citizens to pay taxes with cryptocurrencies. Good examples are the State of Arizona in the US and Singapore.
- Paying transaction fee in the markets: If you decide to trade OMNI in the markets, the required transaction fee can be paid in OMNI. Note that such trading only requires users to start by selecting the right exchanges and picking the preferred currency pairs.
- Use Omni to save funds privately: Though Omni is a protocol, its native token allows users to invest and make savings privately. Because all details are encrypted, you are assured that no third party can easily access the details. However, it is important to appreciate that the expected price growth is only a prediction. The price can shift either way depending on the prevailing market factors.
https://coincheckup.com/coins/Omni
http://www.omnilayer.org/
https://github.com/OmniLayer/spec