What is the Omni Protocol?

The Omni protocol is an Ethereum-native interoperable protocol that allows for low-latency communication between Ethereum rollups. Ethereum rollups are layer-two scaling solutions that enhance the scalability and efficiency of the Ethereum blockchain network.

The main goal of the Omni protocol is to present Ethereum as a single, unified operating system to both users and developers.

The Ethereum blockchain has witnessed remarkable growth since its development and launch in 2015. While this growth helped strengthen its security, there was a problem: scaling transaction throughput in the Ethereum blockchain network became increasingly difficult.

To solve this problem, the Ethereum blockchain network proposed a rollup-centric roadmap, where the Ethereum blockchain focuses on using rollup technologies to scale its network.

To stay committed to its rollup-centric roadmap, the Ethereum blockchain network explored scaling via an isolated execution environment. While this method allows rollups to support various execution environments and programming languages, it degrades the Ethereum blockchain network–causing the fragmentation of the network’s liquidity, users, and developers.

Conversely, the Omni protocol offers the best solution to this fragmentation problem. It provides a secure, performant, and globally compatible architecture, upholding Ethereum’s original goal of being a unified operating system for decentralized applications.

History of the Omni Network

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Source: omni.network

The Omni protocol was founded in 2021 by Austin King and Tyler Tarsi, both Harvard University graduates. The founders’ main objective was to create a protocol that connected Ethereum rollups, unifying the Ethereum blockchain network.

Since its launch, the Omni protocol has run some testnets, all to ensure that its mainnet project comes off as successful.

Between June and July 2023, it ran its first testnet, the Omni Origins testnet. This testnet project attracted about 150,000 users, processing more than 1.5 million transactions. After that, it ran its second testnet project, the Omni Overdrive testnet, between August and October 2023.

The Omni Overdrive testnet attracted 400,000 users and processed about six million transactions. Omni is currently testing its third testnet project, the Omni Omega testnet, which began in March 2024.

The Omni protocol has completed several seed funding rounds to make the Omni project a reality. On February 8, 2022, it raised $18 million from six investors, including Pantera Capital, Spartan Group, and Two Sigma.

In March 2024, Omni Protocol achieved an incredible milestone when it signed a $600 million deal with the restaking protocol, Ether.Fi. The $600 million was staked in EigenLayer, strengthening Omni’s security.

In return, Omni whitelisted Ether.Fi’s liquid token, eETH, selecting the Ether.Fi’s node operators to be part of the actively validated services.

How Does Omni Network Work? Dual Staking Model, CometBFT Consensus and More

Dual Staking Model

The dual staking model is a security model utilized by the Omni protocol. In it, participants of the Omni network are encouraged to stake either their Ethereum (ETH) or Omni tokens.

By restaking their Ethereum token, the Omni protocol leverages the strong security of the Ethereum blockchain. In addition to ETH staking, participants of the Omni network can also stake their Omni tokens, contributing to the integrity of the Omni protocol.

The Omni protocol has three smart contracts that enable staking: the Omni staking contract, the Omni AVS contract, and the Omni portal contract.

The Omni staking contract tracks the amount of ETH or OMNI tokens staked by validators and delegators, while the Omni AVS contract integrates Omni with the Eigenlayer protocol. The Omni AVS contract runs on the Ethereum blockchain network and is responsible for validation on the Omni network. Finally, Omni portal contracts are responsible for keeping records of delegations, validator’s stake, and voting power.

The dual staking model eliminates the need for the Omni protocol to build its security system. It extends the security strength and benefits of the Ethereum blockchain while fostering commitment from network participants.

CometBFT Consensus

CometBft is a Byzantine Fault-Tolerant consensus mechanism that powers the Omni protocol. Due to its highly tolerant nature, CometBFT ensures agreement in a blockchain network, even in the presence of a malicious or faulty node or computer.

Besides helping maintain consensus in the Omni protocol, the CometBFT coordinates state changes across the blockchains and rollups, making cross-chain communication possible.

Since the CometBFT is highly resilient, it helps maintain operational stability within the Omni protocol. This makes the Omni protocol dependable even when faced with conditions that can disrupt a blockchain network.

Application Blockchain Interface (ABCI++)

ABCI++ is a tool that enhances communication between rollups. It reduces the latency in processing and verifying transaction messages within the Omni network.

The application blockchain interface (ABCI++) separates the Ethereum virtual machine (which runs smart contracts) from the CometBFT consensus mechanism within a node.

This separation helps Omni protocol identify and fix the bottlenecks that hinder its smooth performance.

Omni Integrated Consensus

Integrated consensus is a unique mechanism the Omni network utilizes to achieve swift transactions, optimum security, and cross-chain interoperability. To achieve integrated consensus, two network operations are involved;

1. The Omni EVM consensus: Validators propose new blocks while the execution client constructs them. The proposed block is wrapped as a CometBFT transaction and prepared for validation, which is the final process in this operation.
2. XBlock consensus: In XBlock consensus, the validator’s client monitors rollups for virtual machines. The validators then create XBlocks and attest to the hash of the XBlocks created. Finally, the attestations are integrated into the consensus layer block.

Features of the Omni Network: Rollup Interoperability, Omni EVM and Gas Abstraction

Rollup Interoperability

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Source: omni.network

Rollup interoperability refers to the ability of different rollup solutions, like the Optimistic rollups and ZK-rollups, to interact and exchange data.

Traditionally, blockchain networks work in isolation, making it difficult for different networks to interact and exchange data.

The Omni protocol, however, solves this problem by providing the necessary infrastructure that allows rollups to communicate and transact with one another, thereby enhancing the communication between blockchain networks.

The Omni protocol can ensure cross-rollup communication by employing advanced cryptographic techniques and smart contract technologies.

Apart from allowing communication between rollups, Omni also has some features, like transmitting messages in the XMsg format and portal contracts, which help to secure the transactions and data exchanged by rollups.

Omni EVM

The Ethereum virtual machine is a special environment in the Ethereum blockchain that allows users and developers to run and execute smart contracts and decentralized applications (dApps).

Just as the Ethereum virtual machine (EVM) allows Ethereum users to run and execute smart contracts, the Omni protocol also has its own upgraded version of the EVM that allows users to write smart contracts and create dApps.

Utilizing Solidity or Vyper, the Omni EVM provides a consistent environment that allows Omni developers and users to write and deploy smart contracts.

Thus, Omni users do not have to create dApps for different blockchain architectures. Users can use the Omni EVM to develop or program dApps that work uniformly across blockchain architectures.

Gas Abstraction

The gas abstraction feature lets Omni users pay transaction fees with a single token, not minding the rollup or chain on which the transaction occurs.

Executing transactions on different rollups or blockchains can sometimes be complicated and stressful. This is because each rollup and blockchain has its native token. Users often need the native token for each blockchain before transactions can be processed on such blockchain networks.

Through the gas abstraction feature, Omni users do not have to worry about getting the native token for each blockchain network or rollup. They can pay the transaction fee with just a single token.

So, whether users hold their funds on Ethereum, an Optimistic rollup, a ZK rollup, or any other connected network, they can carry out transactions seamlessly without worrying about specific gas tokens for each network.

What is the OMNI Token?

The OMNI token is the native token of the Omni blockchain network. The token was launched on the Ethereum layer one blockchain and facilitates transactions on Ethereum rollups. There are about 100 million OMNI tokens in total supply.

To appreciate the efforts of those who contributed to the network’s development and encourage commitment from all network participants, the Omni Protocol has distributed the tokens in a way that will benefit all participants of the Omni network.

Source: omni.network

According to Omni’s token supply and distribution, 9,270,000 OMNI tokens (9.3% of the total supply) have been allocated for the public launch.

This allocation will make 3 million OMNI tokens (3% of the total supply) available for the Omni Genesis airdrop. The remaining tokens will be used for public launch pools and liquidity.

The Omni genesis airdrop campaign aims to reward the Omni community and its partners across the Ethereum community, fostering and drawing more attention to the Omni project. The Genesis airdrop went live on April 17, 2024, and will be live for 45 days. The deadline for claiming the airdrop tokens is June 1st, 2024.

Source: omni.network

The Omni Foundation has reserved 29,500,000 OMNI tokens (29.5% of the total supply) for developers, thus fostering the development of the Omni community.

According to the token distribution data released by the Omni protocol, the network has made available tokens that will benefit other members of the Omni network, core contributors, investors, advisors, and other members contributing to the growth of the Omni community.

Uses of the OMNI Token

• By restaking their OMNI tokens, holders of the Omni tokens can contribute to the security of the Omni ecosystem. This is outlined in the dual-staking security model of the network.
• The OMNI token is used as a governance token. As such, it confers voting rights to its holders, allowing them to have a say in the network’s decision-making process.
• The OMNI token is used to incentivize and reward validators, developers, and users who contribute to the development of the Omni network.
• The OMNI token is used to pay transaction fees within the Omni network.

Is the OMNI Token a Good Investment?

Since its launch in 2021, the number of Omni users has continued to grow. This is because the Omni protocol unites the different Ethereum rollups, preventing the fragmentation of Ethereum developers and ensuring user liquidity.

This problem, which it solves, has attracted many users to its network. Compared to the 150,000 users it had from its first testnet project, the Omni network has grown to have more than 400,000 users.

As the number of Omni network users continues to grow, the demand for the OMNI token will likely increase. However, as with crypto, predicting a token’s future price is impossible. That is why it is also essential for you to carry out thorough research on the OMNI token. Before investing in the OMNI token, understand and resonate with the Omni project’s ideas and goals.

Risk Analysis

Advantages

One major advantage of the Omni protocol is the efficient roll-up communication it facilitates. By unifying all Ethereum rollups, the Omni protocol allows users to interact across different chains and rollups without fragmentation or loss of liquidity.

In addition, features like the gas abstraction fee and its dual-staking security model allow users to interact seamlessly with other chains and rollups, encouraging and incentivizing users who stake their Ethereum and Omni tokens for the network’s security.

The Omni token distribution data shows that the Omni network offers many incentive opportunities, which users can benefit from by participating in the project’s development. This, in turn, fosters community and team building.

Disadvantages

While the Omni protocol is designed to allow cross-communication between rollups, developers might find integrating these cross-rollups and interoperability features challenging.

Since the Omni protocol is meant to operate within the Ethereum ecosystem, some issues with the Ethereum network, like congestion and gas fees, could indirectly affect the applications built on the Omni blockchain network.

The success of the Omni protocol depends on how much interest and adoption it receives from the crypto community.

Competitive Product Analysis

Fireblocks, Brickken, and Kaleido are some of Omni’s competitors that allow users to build decentralized applications. However, the Omni protocol’s competitive edge is that it revolutionizes rollup interactions.

Omni protocol enhances the smooth communication of Ethereum rollups, allowing users to interact with different rollups and chains easily without ever having to worry about complicated gas fee payments.

How Can You Own OMNI?

To own the Omni token and become a part of the growing Omni network ecosystem, you can follow the simple step-by-step process:

Set Up a Wallet

To own an Omni token, you need to purchase it from a cryptocurrency exchange. To do this, you must create a Gate.io account, complete the KYC process, and add funds to the account to purchase the token.

Use the Omni Token

Once you have your token, you can explore the Omni network’s features and functionalities.

Take action on Omni Network

Users can sign up and purchase or trade Omni tokens here.