OMG Finally Launches Ethereum Scaling Solution, Integrates Tether – Trustnodes

OMG Finally Launches Ethereum Scaling Solution, Integrates Tether

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After years of development the OMG Network has finally launched the More Viable Plasma (MoreVP) scaling solution for ethereum.

“MoreVP trustlessly scales Ether and ERC20 transactions by grouping them together and sending them through a set of Ethereum smart contracts,” Kasima Tharnpipitchai, the OMG Network CTO, says before adding:

“These grouped transactions are then verified and validated by a decentralized network of watchers. Processing batched transactions enables a high throughput of thousands of tps and results in 1/3rd the transaction cost for the end-user — all with Ethereum-level security.”

This is now live and running on the ethereum blockchain with a wallet out as well for end users.

OMG Network on launch day, June 2020
OMG Network on launch day, June 2020

The way this works conceptually is now somewhat familiar in that you deposit funds to the contract which then keeps track of ownership changes within the contract to eventually settle accounts on-chain.

Effectively thus compressing transactions with accounts here kept not by zk-tech but OMG stakers, watchers, who verify what’s going on within the contract/network.

For that the OMG stakers take some of the fees, with the price of the OMG token doubling recently after Coinbase listed it late last month.

This solution for end users can work, but it’s a bit of a hassle in that you kind of have to mentally create a ‘savings’ eth account and a ‘current account’ that is on the OMG Network.

In addition bootstrapping isn’t too easy as OMG is more useful the more people use the network and thus less useful the less use it, creating a chicken and egg problem.

A problem solved by dapps or ERC-20 tokens that can very easily and quite conveniently incorporate something like plasma because to interact with them you first have to make a transaction in any event, so why not have this transaction with a plasma contract or zk contract that incorporates or is incorporated by the dapp or token?

That’s what Paolo Ardoino, the CTO of Bitfinex, probably asked himself and his answer is quite simple:

“At Bitfinex we are committed to improving our service to better support our customers. By migrating USDt value transfers to the OMG Network, we save costs, drive performance improvements, and relieve pressure on the root chain. This is good for Bitfinex, our users, and the entire Ethereum ecosystem.”

Not good for bitcoin. Unlike for BTC where you can’t easily address the bootstrapping problem for second layers, ethereum’s contracts usage means to get scales dapps can just ‘sync’ with a plasma or zk contract and like a switch basically you have potentially as much as 1,000x current capacity at no obvious expense to the user experience or the convenience of using the dapp.

That’s because each contract is kind of its own world with its own rules on top of ethereum’s protocol level rules. So there’s no reason why when buying a cryptokittie for example the contract shouldn’t just keep accounts within itself and then settle on-chain instead of constantly interacting with the 10,000 ethereum nodes run by technically volunteers for now.

So the market eventually may well ask to see the Plasma Ready sign or ZK Ready because it probably is a world difference experience when using a scalable contract that once inside is kind of instant and almost free, instead of an unscalable one that constantly requires a hug from MetaMask.

Meaning ethereum is starting to become scalable at least as far as dapps are concerned with all that’s needed now being the integration and implementation of zk plasma or perhaps some other in-contract accounts solution.

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