OMG Network is build to scale Ethereum – does it work?
Layer 2 solutions, such as OMG 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 storage space on the Ethereum blockchain.
What is the OMG network all about?
Ethereum’s network congestion is a major shortcoming. Transactions on Ethereum 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 rise 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 Ethereum network is under stress, there are two problems: high gas costs and long confirmation times.
The OMG 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 DeFi applications are deployed on Ethereum. Although the Ethereum 2.0 update should improve Ethereum’s scalability, Layer 2 solutions will likely be needed in the future.
This article is not sponsored in any way. Our income comes only from donations, so we don’t depend on anyone. Read more about our journalistic values and how you can support our mission.
Nothing on Cryptinus constitutes professional and/or financial advice. Always think for yourself and make sound decisions when investing. Never invest money that you can’t afford to lose.