How does OMG provide security, scalability and adoption?

Please note: the OMG Network is still in development, and some details cannot yet be included. This knowledge base will be revised regularly to include updates and additional details.


Centralized databases are highly susceptible to attack. Over and over again we have seen massive stores of sensitive data hacked, stolen, leaked and tampered with. It only takes one careless person to compromise the whole system. The owners of those databases get a slap on the wrist; the users whose data was leaked spend the rest of their lives in fear of having their money or identity stolen.

By employing asymmetric encryption via public and private keys, blockchains make it possible to conduct secure transactions without having to collect and store personal data in centralized databases. This is good for both the service provider and the user: private keys are more difficult to steal than physical cards, cannot be forged like an ID or written signature, and cannot be stolen en masse like account numbers or passwords since they are not stored in any database. So users don’t get their identities stolen due to lax security systems, and service providers don’t find themselves liable for fraudulent transactions.


OMG solves the security vs. performance (on-chain vs. o-chain) dilemma by performing all orderbook and execution functions on-chain, on a specialized chain. The Plasma architecture allows for transactions to occur in real time, while state proofs are committed to and enforced by the root chain, so the OMG network can scale infinitely while still being secured by the Ethereum root chain.

Currently Ethereum is processing about 15 transactions per second, but we are building the OMG network to be able to handle all the world’s transactions simultaneously.

Mainstream adoption?

Today, decentralized nance and cryptocurrencies are still quite foreign to the mainstream. Taking advantage of the many opportunities Ethereum can offer still requires a fair amount of technical knowledge, well beyond the scope of the average consumer. OMG’s white-label SDK is designed to be simple and friendly, allowing business users to create customer-facing wallet apps that utilize the OMG network without requiring a deep understanding of the underlying technology

By creating the SDK, we are doing the legwork that will allow business users to plug into the network easily and build wallets that take advantage of Ethereum’s vast potential without compelling any behavioral change on the part of the end customer. Providers can customize wallets, building in whatever functions they need and incorporating their own branding.

Users will be able to experience the freedom to transfer money in and out of whatever currencies they wish, including decentralized currencies such as ETH and BTC. The OMG network is intrinsically agnostic between at and decentralized money: as far as adoption and use go, the system is constructed so that the best currencies will win.

End-customers will not necessarily know that their service is powered by OMG, they will simply know that it works and that they get benefits passed down in terms of reduced costs, real-time transactions, and increased access and flexibility.