OMG is the answer to a fundamental coordination problem amongst payment processors, gateways and financial institutions. By enabling decentralized exchange at high volume and low cost, OMG will provide a next-generation value transfer service operating across currencies and asset types, and across national borders and corporate ledgers.
OMG has been created to achieve two goals:
Through the OMG network, anyone will be able to conduct real-time, peer-to-peer financial transactions, including but not limited to payments, remittances, payroll deposit, B2B commerce, supply-chain nance, loyalty program activity, asset management, and other on-demand services in a completely decentralized and inexpensive way, and including highly performant and fully decentralized trading.
If you are confused around the naming of the different entities gravitating around this project, see below :
OMG is both the name of the network, and the ticker of the ERC 20 token that will be used to secure the network.
OmiseGO is an incorporated entity, subsidiary of Omise Holdings, and has been created by raising funds through a public token sale in June 2017. It is pronounced oh-mee-say-go.
Omise is a leading online payment gateway service provider operating in Southeast Asia.
So OmiseGO is building the OMG Network (in an open source environment, see their Github), and Omise will move its transactions to it when the network is live.
The network will be public and open source, so neither Omise nor OmiseGO will own or control the network, the validators will, as any decentralized blockchain.
Ultimately, blockchain solves one problem : coordination.
The central paradox of human society is that we need to conduct transactions on a mass scale to accomplish our ends, but are simultaneously unwilling to trust anyone outside our immediate circle.
Throughout history, societies have tried to circumvent this problem by constructing various ever-more-elaborate mechanisms, all of which still rely on trust at some level: governments, banks, clearinghouses, arbitrators and the legal system are all institutions that we have little choice but to trust with our money, our identities, our histories and our futures. There is no guarantee that they will be competent enough to secure those things adequately; no guarantee that they will act honestly or responsibly; no guarantee that the rules of the game will not change without warning; and taken to the extreme, no guarantee that these institutions will continue to exist at all.
Applying this to the current financial system, assets such as currencies are locked up in a messy web of indirect ownership and delayed settlement. Transferring assets from one party to another often requires point-to-point interaction between multiple intermediaries, and reconciliation of duplicated ledgers held by multiple parties. Even between these parties there is a lack of trust, leading to a proliferation of convoluted systems designed to protect financial institutions from each other and themselves—and paid for by the consumer.
Blockchains allow us to create a single shared ledger, or an interoperable network of provably coordinated ledgers, on which ownership and status of an asset can be immutably recorded. OMG aims to create such a ledger on a global scale, by constructing a lightweight and highly scalable and secure blockchain which directly integrates with the Ethereum blockchain and Ethereum smart contracts.