OMG Network is build to scale Ethereum – does it work?

omg-network-scalabilty-ethereum

OmiseGO ( Network) is an Ethereum scaling solution that is backward compatible with ERC-20 and ETH.

Network aims to solve some of Ethereum’s scalability by promising lower gas costs and faster confirmation times.

Layer 2 solutions, such as Network, are available. A Layer 2 solution is built on top of an existing blockchain (in this case, Ethereum). The “secondary” layer processes transactions, freeing up valuable block space on the blockchain.

The network is intended to provide the same level of as Ethereum, but with lower transaction costs and faster transaction times, and it supports all ERC-20 as well as ETH.

What is the network all about?

Ethereum’s network congestion is a major shortcoming. Transactions on are usually fast and take 10-20 seconds to confirm. However, when gas prices are high, transaction times can take up to hours.

Since more expensive gas transactions are routed through the network first, when gas prices are low, it can take a long time for the transaction to be confirmed. Gas prices naturally and transaction times increase when network load is high.

In this scenario, you have two options: pay a higher price to continue your trade, or wait until gas prices drop. When the network is under stress, there are two problems: high gas costs and long confirmation times.

The network solves this problem by providing low-cost, fast transactions. It provides thousands of transactions per second for a third of the price of Ethereum.

This is not only critical for token trading. Network congestion will continue to be an issue as more applications are deployed on Ethereum. Although the 2.0 update should improve Ethereum’s scalability, Layer 2 solutions will likely be needed in the future.

The network was designed to solve Ethereum’s issues. It is a transfer layer for financial services on the that enables fast transaction times and low gas costs.

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