Cryptocurrencies are digital assets that work as a medium of exchange for many transactions across the world. It is based on cryptography and the transactions are recorded in a public ledger called the blockchain. A lot of people recognize the importance of cryptocurrencies because it is not controlled by a bank or any centralized institutions.
One of the cryptocurrencies made is the Ethereum. It is a decentralized platform where you can build new applications of money anywhere you are in the world. In today’s times, you don’t need to have a complex background in mathematics, coding, and cryptography to build Ethereum applications. Times have changed and Ethereum now provides developers the proper tools to develop decentralized applications.
Ethereum introduced the idea of smart contracts to developers using the blockchain technology. It made altcoins that use the same decentralized concept as many other cryptocurrencies like Bitcoin, but they take things further as they develop unique features of their own. One of the altcoins based on the Ethereum platform is Omisego.
Before you can trade on this investment, it is important to understand its nature and its uses. Note that the information below should not be interpreted as an endorsement to trade cryptocurrency. You can read more about Omisego on this website.
What is Omisego?
Omisego describes itself as the answer to the problems of online exchanges among financial institutions, gateways, and payment processors. The problem with trading today is that one should stick on a fiat currency before he can buy cryptocurrencies like Bitcoin. For example, someone must have a US Dollar currency, buy Bitcoins and other tokens, and vice versa. US Dollar is also the standard when you want to convert cryptocurrency to another.
Omisego is different because it aims to disrupt the ways of buying and selling cryptocurrencies from online markets. You can do this by connecting your wallet to the blockchain of Omisego. You can then exchange your existing coins to another without revealing your identity. The whole process of exchange is recorded to the ledger but you will remain anonymous. You can also trade Omisego with other cryptocurrencies available on a platform where you are registered.
If you use fiat money, the exchanges are often centralized. This means that it can be monitored by the central bank or a group of servers on the internet. When you send money using your credit card or your PayPal account, the person whom you’ve sent it to will know your name and other information that the platform chooses to show on the receiver’s end. You will also need to upload your driver’s license or your passport to verify your identity before your accounts on PayPal, Transferwise, or other financial platforms are approved.
When you trade using cryptocurrency, Omisego will use the same exchange processes but you are not required to upload information about you. The difference is that the whole transaction is decentralized and its legitimacy is recorded on the ledger. The blockchain will prevent any hackers from tampering the data because he has to convince every user of the blockchain in the process. If there are ten thousand users, those people will have to let the hacker use their accounts to disrupt the whole blockchain technology which is an impossible feat.
Agnostics of Currency
As mentioned before, most people have to exchange fiat money to cryptocurrency to gain access to Ethereum or Bitcoin.
Read more about Bitcoins in this site here: https://www.investopedia.com/terms/b/bitcoin.asp.
For example, if a person wants to convert his ETH to BTC, he would need to find an exchange platform that trades both of the said cryptocurrency. He will then have to send ETH from his wallet to the exchange. The ETH will be converted to fiat currency, (USD) and the USD will have to be converted to BTC.
The process is lengthy and there would be fees that are needed to be paid in the whole process. There are fees when buying ETH and fees when buying BTC. Omisego can circumvent this process through agnostics. The conversions are always direct. You can trade BTC to ETH and vice versa without paying too much.
The future for Omisego remains unclear and a lot more has to be seen. The exchange is still young since its development in September 2017. The community of developers is confident that Omisego has a future in the world of cryptocurrency because it solves current problems. However, everything is not guaranteed. There’s a lot to watch out for and you should research well before investing.