Omni Coin is a decentralized digital currency that is built on the bitcoin blockchain technology. It is a cryptocurrency similar to Bitcoin but is commonly known as altcoin. Omni Coin is a continuation of Mastercoin, which was first launched in 2013. This was after J. R. Willet first published a draft proposing that the current bitcoin protocol could be used as a protocol layer and a new currency layer could be built with new rules without disrupting its foundation. During that time, anyone was capable of buying Mastercoins, that is the digital tokens used in financial transactions. The Mastercoin network served as a decentralized exchange where anyone could place an order via the blockchain to trade the currency for another. Anyone who matched the order would then automatically complete the trade without the person who post the order getting involved.
The idea of Mastercoin was that the tokens would appreciate in value so that investors could sell them at a profit. Mastercoin Foundation, which was a non-profit organization, was started to handle the bitcoins that were sent to a special address called the Exodus Address. About 5000 bitcoins worth $500,000 at that time were sent to that address. Some Exchanges still trade Mastercoin, however, current desktop wallet provide support for Omni and Bitcoin only. Unlike Mastercoin, Omni Coin seeks to make the most of Bitcoin’s blockchain so as to build support for services such as smart contracts, digital assets trading and decentralized currency exchange.
So why should you use Omni Coin?
Omni Coin has no frozen funds or charge backs, plus it is cost effective and you can fully control your funds. Being a peer to peer cryptocurrency, there is no single individual who can control it. Anyone with a wallet in their desktop, can have a say in the cryptocurrency. However, for this to happen there is the need of having a verification system put in place to ensure that no one spends double the amount of their coins, or spend coins they don’t have. Hence, we have miners in the Omni Coin network.
For a payment to be successfully completed, it has to go through different confirmations. In this case, 10 confirmations. Confirmations refers to transactions that have been processed and cannot be reversed. Miners are placed in blocks where they wait to confirm transactions.
Omni Coin Exchanges
Omni Coin exchanges are used to trade cryptocurrencies for another like fiat or currencies. The main exchange that is currently used is the Bittrex. Bittrex offers a fast and secure exchange platform for users. It utilizes a two factor authentication for withdrawals and API usage. To ensure fast transactions, Bittrex has an automated monitoring platform. Users can therefore know where their funds are at any given time since the trade and balance updates in addition to wallet information are up to date. Its API feature allows users to quickly withdraw, exchange and trade funds.
Omni Coin Wallet
Omni Coin tokens can be traded using the OMC Wallet and Omnicha.in Online Wallet which can be downloaded online. Once you download the Omni Coin wallet it will connect to the Omni Coin network. After your Omni Coin has synced, you can start sending and receiving Omnicoins with the address. An address is basically a string of letters and numbers, that has OMC balance. OMC refers to a unit of Omnicoin currency.
It is recommended you create a new address after completing every transaction so as to stay anonymous. In case of loss of an address, the OMC in your address will be lost. Each address comes with a private key which you have to keep secret to avoid losing money in your wallet. Basically an Omnicoin wallet will show you the balance of Omnicoins it controls, and lets you pay some amount to a specific individual.
The Verdict
Omni Coin was created to enhance complex financial functions within the cryptocurrency world. Gone are the days when paper currency was the only acceptable currency in trading with goods and services. Today, people are using digital currencies such as Omnicoin to buy medicines and food. The good thing is that Omnicoin is completely decentralized and there is no bank to control it. This makes it secure to trade with Omnicoin without worrying about government regulations.
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