In the early days of the Bitcoin blockchain, enthusiasts of the decentralized world and cypherpunks (advocates of a liberal movement that seeks to protect privacy and improve security through the use of cryptography) widely embraced the emerging currency. But over the years, Bitcoin enthusiasts realized the weaknesses of this blockchain. Therefore, the developers offered different solutions and tools to compensate for these defects. One of these solutions that has helped to increase the efficiency of the Bitcoin network is to create a separate layer from the main network but connected to it. The Omni network also acts as a layer on top of the Bitcoin blockchain. In this article, we examine the omni layer and explain the applications of this network.
What is Omni Network?
Omni platform network Decentralized, peer to peer And Distributed It is built on the Bitcoin blockchain.
This network, which was launched in September 2012 with the publication of a white paper by JR Willett, initially Mastercoin It was called and in continuation of Mastercoin activity in 2015 to omni Changed the name.
The OMNI protocol is one of the first sidechain protocols built on the Bitcoin blockchain. The purpose of this network is to provide additional financial functions on top of the Bitcoin network.
The security layer was particularly popular in the early days of blockchain technology development, as there were few alternatives to it. The main core of the network is Omni Core, is an enhanced Bitcoin core that includes all the features and functionality of Bitcoin. This platform allows users to easily transact their tokens on the Bitcoin blockchain using this network.
The Omni protocol was also the first network to launch the Tether stablecoin on the blockchain. In the following years, Tether minted its tokens on multiple blockchains as other blockchains were launched. But it’s worth noting that this layer is still the third largest network that Tether uses to multiply USDT. Of course, the Binance exchange published news about the removal of Tether Omni a few months ago.
How does the Omni network work?
The OMNI protocol allows tokenization and other smart contract features to be implemented on the Bitcoin network, so there is no need to build a dedicated blockchain to do these things.
The function of the Bitcoin blockchain is to perform basic logical operations, so the Omni network is used to perform customized operations. Due to the fact that this network is located on top of the Bitcoin blockchain, the possibility of continuous communication with the Bitcoin platform has been provided.
In March 2014, a feature was added to this layer called OP_RETURN which allows the execution of smart contracts without changing the main layer (Bitcoin). In fact, Tether dollar stablecoin is also built using the same smart contracts in this layer.
The OMNI protocol takes advantage of the hash power and security of the Bitcoin blockchain’s proof-of-work consensus mechanism by using this continuous communication and the support of the Bitcoin network.
Omni network applications and products
The security layer is an ideal tool for creating and exchanging customized currencies. It also enables blockchain-based crowdfunding by collecting digital currencies in a secure, decentralized, peer-to-peer, and intermediary-free manner. In the following, we discuss the applications of this platform.
Decentralized digital currency exchange
The OmniDEX platform allows any user to submit an order to buy or sell without an intermediary. Once an order is filled, the transaction is executed. For example, a seller can propose a transaction to the network and specify a desired currency and amount. Then any user who wants to make a purchase can immediately make the transaction directly on the network. The whole process is done peer-to-peer without any intermediary.
Custom Assets
The Omni Network acts as a bridge between altcoins, smart contracts and the Bitcoin blockchain. It makes it easier to create and exchange customized digital currencies. According to Omni Explorer, there are currently 881 assets available for trading in this layer.
Blockchain-based crowdfunding
The Omni Network acts as a crowdsourcing platform like Kickstarter, albeit in a decentralized way. This network supports blockchain ideas and innovations by providing the necessary capital without third party intervention. Participants can send Bitcoin or other tokens directly to an issuing address or create their own ICO on this layer.
Popular tokens in the omni layer
One of the most popular market cap tokens built on the Omni network is the MAID cryptocurrency. This token was created to support the development of the MaidSafeCoin network. This project has another cryptocurrency called EMAID, which allows pre-purchase of the main currency of the network.
Tether (USDT) is by far the most popular token on the Omni network and has a long relationship with the protocol, dating back to the inception of the Mastercoin Foundation.
Brock Pierce, one of the founders of Tether, was one of the main members of this foundation; While Craig Sellers, another founder of Tether, has been the Chief Technology Officer of the Mastercoin Foundation.
The OMNI protocol has been the technological foundation for the creation of the Tether token since its launch in 2014 on the Bitcoin network. Of course, Tether tokens have already been updated to work with Ethereum, EOS, Tron, Elgorand and other blockchains. This popular digital currency is currently the third largest cryptocurrency in the market with a market value of more than 66 billion dollars.
OmniWallet wallet
Omniwallet tool is a type of web wallet that aims to provide security and support different currencies. Of course, according to the Omnivolt website, this wallet is being updated and we will have a more complete version in the future.
This wallet can support bitcoin, OMNI coin and test tokens of this network. Of course, there are many dedicated bitcoin wallets that support different blockchains, such as Coinomi, which is much more professional than this wallet in terms of security and usability.
OMNI coin and its application in Omni layer
Omni Coin is the native cryptocurrency of the OMNI protocol, which currently has a price of $0.57. The market cap of this currency is currently only 320,000 dollars and it is ranked 1785 in CoinMarketCap.
This digital currency only in the exchange Phoenix bit It can be purchased and its daily trading volume is $1.34.
The highest price of this coin was reached in January 2018, which was $129, and it is currently 99.6% away from its price ceiling.
According to the information available on one of the sites of this platform, OMNI coin is necessary to use some features of the secure layer, such as the execution of dedicated smart contracts. The total number of coins available is 619,478.6 and no more OMNI will ever be created. Additionally, OMNI Coin cannot be mined. This number of coins was created as a result of a Kickstarter.com-style crowdfunding.
It should be noted that the price of this coin has nothing to do with the price of Bitcoin and they are two separate assets.
Bitcoin network developments and the future of the omni layer
The Omni protocol was created according to the existing needs in the Bitcoin network, and it had fulfilled these needs for years. Even the big stablecoin Tether was initially launched on this network. But with the ever-increasing progress of the blockchain and crypto industry, this project remains one of these innovations; Until recently, Bitcoin network experts have announced the implementation of DLC smart contracts on the main Bitcoin blockchain. DLC smart contracts are special and smart contracts of the Bitcoin network that have high speed and adaptability. Therefore, it can be concluded that the implementation of these contracts and the creation of tokens in the main network will be safer and more secure than its implementation in the secondary layer of the Omni network.
In your opinion, is it possible to return this network to its former prosperity? What update can revive Omni?
What is Omni Network written? The connection of omni layer with bitcoin first time on the Wallex blog. appeared.
