This is not description of a decentralized project.
I meant to reply here, but I accidentally posted in another post so I'll paste here:
OmiseGo fails at PoS security
In PoS distribution = security.
OmiseGo was distributed in pre-sale to limited number of people that even required AML/KYC, so not permissionless sale. Obviously, AML/KYC doesn't prevent sybil attack as anyone can buy identities/people to buy tokens for them.
Effectively they used a permissioned sale with a cap (making it easy to displace other people) to distribute coins to be used for PoS where coin distribution provides security.
- 65.1% - capped permissioned ICO = decentralization fail
- 20% - premine they keep = decentralization fail
- 9.9% - premine team keeps = decentralization fail
- 5% - airdrop on eth (also premined/ICO'ed eth) = too little to make a diff
OmiseGo failed at decentralization already
Centralized company in control
- The company and its members hold 29.9% of coins
- The company has full control over $19m from capped sale
- Most of the value comes from connections in Asia Omise has
This means Omise can do any changes (e.g. taking others money or censorship) with a fork and then:
- Decide which blockchain is called OmiseGo (OMG)
- Use premine to damage value of any original chains dissenting from Omise company decisions
- Hold updates and ICO funding hostage to keep all value on their chain
- Control of codebase where they can set changes to default
- Force all the business connections of Omise to only operate with chain of their choosing
All of these were done by Ethereum in the past to subjectively & forcefully confiscate $100m+ and censor an unknown user.
Decentralization is measured by being resistant to attacks from an individual or organization. Omise, themselves or under influence of external force, can single handedly destroy the value and thus incentives for the entire network at any time or even use their stake to attack it.
There is nothing effectively decentralized about governance decisions on their network with enormous advantage given by massive premine and ICO.
OmiseGo will not be decentralized
Plasma is unsecure & not scalable
- Fraud proofs do not work because they make it profitable for everyone to cheat the system (thread)
Ethereum is the worst network possible to connect to since it's literally the only main blockchain to have ever proved complete centralization and there's pretty much nothing they can't modify. Also ethereum is way too slow to handle child chains:
Everything OmiseGo hopes to do has already been done in decentralized manner.
Not important. But why not mention they had 0 reason to create OmiseGo other than to raise money. And it's still vaporware that's for 0 reason valued higher than projects doing everything they hope to do since 2014. Well, there is 1 reason - it was marketed to the most tech-illiterate community in crypto next to onecoin - ethereum community with 0 talented developers, 0 innovation, and 0 tech since no one intelligent would ever choose to be associated with proven fraud of a project and went into other projects like altcoins a year ago. But that's exactly the type of community that happens to be stupid enough to throw most money at ICO's.
RE: Omise/OmiseGO Ecosystem Primer