OMG Network introduces main-net blockchain platform
This month OMG Network, the blockchain arm of SYNQA, launched its main-net platform to transfer digital assets by providing digital financial services and scale up transfers on the ethereum network.
Ms Vansa says OMG Network has reduced transfer costs by 66% and can process thousands of transactions per second.
SYNQA is one of Thailand's most well-funded startups. Most of its revenue comes from Omise, a payment gateway for e-commerce websites popular in Thailand and Japan. Omise launched in 2015 with high-profile clients like McDonald's, King Power and True Corporation.
Charoen Pokphand Group, through True Corporation, is one of SYNQA's biggest investors.
Omise saw a considerable uptick in transactions during the lockdowns, driving consumers towards e-commerce and online food deliveries.
The moneymaking side of the business has been used for the past few years to fund the more innovative side, OMG Network, a blockchain lab researching solutions for common pain points in the ethereum blockchain network, most notably scalability and transaction costs.
Ethereum is considered the second most popular cryptocurrency after bitcoin and is popular among developers for its use of smart contracts.
While ethereum is a secure way to transfer funds, it can only process a limited amount of transactions at high costs.
The OMG Network has reduced transfer costs by 66% and can process thousands of transactions per second. While it is not used for e-commerce or banking yet, use cases include cross-border payments and transferring digital assets like in-game items.
"The internet is available to more than 60% of the world's population, but our current financial system is fraught with friction," said Vansa Chatikavanij, chief executive of OMG Network. "To empower true global commerce, we need to enable permissionless transactions that can accommodate multiple parties and forms of money. Blockchain already allows for this, but until now it has been unable to scale to meet global demands.
"OMG Network accomplishes all of this with the security of ethereum and at a fraction of the cost. It is a major milestone in what will continue to be a long and exciting journey."
Ms Vansa said the next step for the network will be to expand to financial services, possibly in providing leasing options for car manufacturing, and developing a loyalty points programme in Japan for credit cards.
The cryptocurrency coin attached to the platform, OMG, also has seen success, growing over 50% in value over the past 30 days after being listed on Coinbase, one of the largest cryptocurrency trading platforms in the US.
Part of the international hype around the OMG Network comes from its use of More Viable Plasma (MoreVP) to increase the transaction volume of ethereum.
"MoreVP's trustless feature scales Ether and ERC20 transactions by grouping them together and sending them through a set of ethereum smart contracts," said Kasima Tharnpipitchai, OMG Network's chief technology officer. "These grouped transactions are then verified and validated by a decentralised network of watchers. Processing batched transactions enables a high throughput of thousands of transactions per second and results in one-third the transaction cost for the end-user -- all with ethereum-level security."
The OMG Network has also integrated Tether, a platform tied to the US dollar that enables real-time peer-to-peer transactions at low transaction costs.
Tether provides stability from the volatility of the crypto market for financial transactions by being tied to hard currency, while the price of ethereum dropped from $240 to $107 during March.