Although Bitcoin is the world's first, largest cryptocurrency and most iconic cryptocurrency, it has several limitations. Thousands of altcoins have arisen over the last decade trying to solve Bitcoin's (and each other's) weaknesses.
WHAT DOES THE OMNI LAYER DO
Omni is a platform for creating and trading custom digital assets and currencies. - (omnilayer.org)
This layer-2 solution essentially brings more smart-contract functionality to Bitcoin. For example:
- Native tokens can be created on the Bitcoin blockchain similar to Ethereum's ERC-20 tokens
- DeFi functions like loaning, lending, crowdfunding, and more are made possible
- P2P trading
So how and when did this revolutionary L2 solution come about?
HISTORY
The Omni Layer (previously known as Mastercoin) was drafted in 2012 by J.R. Willett. It launched in July 2013 alongside its own currency, Mastercoin (now called "Omni") which was used for transaction fees. The ecosystem grew rapidly, Mastercoin was ranked 7th most valuable cryptocurrency only 7 months after launch.
In March 2015, Mastercoin rebranded as the Omni Layer.
FAST FACTS
- The Omni layer has nearly 20 million total transactions
- Over 700k total blocks
- Over $2 billion in value on the network
The Omni Layer has experienced a dramatic decline since its launch due to the advent of alternate blockchains with the same functions on their L1 core (ex: Ethereum). However, it provides utility for investors who prefer the Bitcoin blockchain.
