OMG Protocol

OMG Network is a Layer-2 scaling protocol for Ethereum. What this protocol aims to achieve is a higher transaction throughput at a lower cost while leveraging the security guarantees of its underlying layer.

OMG Network is predicated on the creation of a child chain that batches transactions before committing them to the root chain, which, in this case, is Ethereum. The child chain relies on the root chain as the trust and arbitration layer. With this type of relationship, if something goes wrong with the child chain, users’ funds should remain safe. The protocol's token, OMG, is the primary method by which users can pay for transaction fees and interact with the network.

The decentralised protocol is specifically designed as a plasma child chain anchored on the Ethereum blockchain. In general, by leveraging the plasma framework, the OMG network is able to facilitate a high transaction rate without trading off the benefits of the host blockchain.