What is Omni Protocol? Can the BHD main chain add the Omni protocol?

The stablecoin with the highest market value is USDT. At present, the USDT market value has reached 45.024 billion, ranking fourth in the global market value. USDT was initially based on the token issued by Omni. In the process of issuing USDT, OmniCore is required for technical docking. We will come today Learn about what the Omni protocol is, and explore whether it is possible to implement the Omni protocol on the BHD main chain?

What is Omni Protocol? History of Omni

The Omni protocol is a communication protocol, which is based on the Bitcoin network and builds an Omni Layer consensus network on the Bitcoin network, relying on this Omni layer outside the Bitcoin network to realize functions such as smart contracts, user currency, and decentralized peer-to-peer exchanges. We can realize the issuance of tokens based on the Bitcoin network through the omni protocol. These tokens do not need to rely on external relationships that have nothing to do with the Bitcoin network, and can be traded directly through the Bitcoin network. Tokens are similar.

Omni was first proposed by JR Willett in January 2012. He proposed in the Omni white paper that the existing Bitcoin protocol can be used as a protocol layer to create a new currency layer without changing the Bitcoin protocol. "

Gemini co-founder: Young people don't know what a world without the Internet or Bitcoin is like: Gemini co-founder Cameron Winklevoss tweeted this morning that a generation growing up today doesn't know what a world without the Internet or Bitcoin is like. what it looks like. Instead of accepting the centralized world they are inheriting, the crypto generation or "Generation C" will commit to building a new, decentralized world. [2020/7/18]

In July 2013, Omni was officially launched and eventually became an "open-source, fully decentralized asset platform based on Bitcoin." Anyone can buy Omni protocol by sending Bitcoin to a special "Exodus address" for Digital tokens for transactions. Omni does not have its own independent data package, and data such as blocks and transactions are stored in the block information of Bitcoin.

On July 10, 2014, USDT based on the Omni chain was officially released. The relationship between USDT and Omni is equivalent to ERC-20 Token and Ethereum. After that, the development of stable coins began.

Sound | OKEx CEO: The U.S. judicial system is very complicated. The USDT case will not have any results in the short term: OKEx CEO Jay Hao posted on Weibo that the USDT case will not have any results in the short term. The U.S. judicial system is very complicated and pursues procedural justice. For a new thing like USDT, it will not be simply judged legal or illegal, and USDT lawyers also have various means to delay the progress of the case. Just how to characterize USDT will require a long court debate. The advantage of a legal society is that everything can be handled in accordance with the law. For cases with vague laws, open and transparent hearings and trials are required. ​​​​[2019/7/30]

The implementation of the Omni protocol makes it very convenient to create and trade digital assets based on Bitcoin. Through the Omni browser, you can view all the currencies issued based on Omni, with a total of more than 800 kinds, but only USDT has been widely used.

Voice | Bitcoin security expert: Facebook Coin is no different from PayPal and digital legal currency: According to AMBcrypto report. Bitcoin security expert Andreas Antonopoulos recently said in a question-and-answer session on YouTube that he is not worried about the issuance of cryptocurrencies by large companies like Facebook, because he has always believed that such corporate tokens will be produced sooner or later, and even global The central bank will launch its own cryptocurrency, but these cryptocurrencies will have the characteristics of legal tender, the only difference is how to achieve it - from the previous Microsoft SQL database to the blockchain database. Antonopoulos went on to point out that, in reality, Facebook Coin cannot be used for cross-border transactions without complying with banking regulations. Facebook would not offer its cryptocurrency without a strict KYC/AML policy, no different than PayPal, or digital fiat currencies offered by banks. However, a company like Facebook has the added benefit of providing a better user experience, service, transaction speed, and brand recognition for its cryptocurrency than Visa, JPMorgan, or PayPal. [2019/3/31]

Op-Retrun information

News | New Zealand's top search-ethexc in 2018 is "What is Bitcoin?": According to New Zealand's "Establishment", six themes of New Zealand's hot search-ethexc in 2018 were released, namely: new beginning, participation in competitions, and local heroes , stormy weather, colorful and outlandish questions, the ketogenic diet. Among the colorful and outlandish questions, the top search-ethexc question was "What is Bitcoin?", followed by queries on how to find an IP address and screenshots. [2018/12/19]

The omni protocol provides an efficient and simple function of creating tokens, and its function is realized based on the Op-Retrun function of the Bitcoin network.

The Op-Retrun function of the Bitcoin network was first launched in 2013. In the BTC lock script, as long as it starts with OP_Return, it is a "remark information". We can compare it to the remark when we transfer money through the bank.

The original application scenario of Op-Retrun was only for the convenience of users to record information on the blockchain. For example, the Internet brokerage TD Ameritrade used ASCII codes to use the Op-Retrun function to spell out on the Bitcoin blockchain by sending 68 bitcoin transactions. A digital banner bearing the company's logo-ethexc was created.

Based on the immutable nature of the blockchain, this flag will always be stored on the Bitcoin network.

How to issue coins and trade

So how does the omni protocol realize the issuance of tokens and token transactions?

We can initiate a transaction with custom OP_Return data, this transaction will be completed through the Bitcoin network, and a transaction tx will be generated at the same time. Of course, the nodes in the Bitcoin network will not recognize the OP_Return data in this transaction, but we can analyze the OP_Return data in this transaction through the omni protocol outside the Bitcoin network.

Assuming that the OP_Return data parsed by the omni protocol for this transaction is "acquire 100 XXX tokens", then this address will be recorded and added with 100 XXX based on the omni protocol.

When there is no certain token in the entire network, the transaction corresponding to the first record added to an address through the omni protocol is the creation transaction, and this address also becomes the creation account. Subsequent transactions through the Genesis account, as long as the OP_Return data that can be parsed by the omni protocol is attached, the parsing of the omni protocol is equivalent to recording the amount of tokens for each transfer.

For example, for the transaction mentioned above, through the analysis of the omni protocol, address A is recorded as having 100 tokens XXX, and address A did not exist XXX before, so it is the creation account of token XXX. And when we need to transfer 10 XXX from address A to address B, we only need to construct a transaction, and at the same time, the OP_Return of this transaction contains data that can be used by the omni protocol - "address A-10XXX, address B+10XXX". Then as long as all the transaction records are saved, by calculating all the parsed transaction records, the balance of XXX tokens for each address can be obtained.

Now that the Omni protocol can realize the creation and transaction of tokens based on the Bitcoin main chain, can BHD, which has been upgraded on the Bitcoin main chain, realize the development of the Omni protocol? The answer is yes

OmniCore is a branch of the Bitcoin architecture. It implements a new Omni protocol layer on top of the Bitcoin protocol. The Omni protocol layer can implement applications such as token issuance and crowdsale, similar to USDT. Correspondingly, if we are in BHD Adding the Omni protocol to the main chain, combined with the advantages of BHD's low energy consumption and fast confirmation, and using BHD as a transaction fee, the issuance of tokens will become more convenient and convenient.

Reference article:

1. The basic principle of issuing tokens on Bitcoin - popular explanation of omni protocol issuing tokens: https://zhuanlan.zhihu.com/p/40062558

2. Common problems of OmniCore protocol docking:

https://www.bitedaka.com/article/6

3. Understand the omni protocol - USDT, what must be said behind the wormhole protocol...:

https://bitkan.com/zh/ksite/articles/23664

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