OmiseGo (OMG) has been one of the biggest gainers among the coins and altcoins in the cryptocurrency market in the past few weeks. The altcoin is on track to smash its all-time high traded in January 2018. OmiseGo price is currently trading at $15.73 although it has made an intraday high of $18.00 on Wednesday 25. OMG/USD has been on track in the month of April, boldly rising from the lows of $8 to test the resistance level at $20.00 in a couple of weeks. OmiseGo is up more than 55% in the month of April, moreover, there are various events that are coming up in May that could continue to support the price as it retraces upwards.
One of the highly-awaited events in the coming month is the OmiseGo hard spoon. It is said to be one of the biggest events for the network and will entail a hard spoon between OmiseGo (OMG) and Cosmos. It is, however, essential that we understand what a hard spoon is all about before we dive in deep. The phrase, hard spoon was an invention from the CEO of Tendermint, Jae Kwon and I quote:
“Hard spoon: a new chain that takes into account state from an existing chain; not to compete, but to provide broad access”
Another explanation of the phrase was provided by the Ethereum co-founder, Vitalik Buterin, and he says:
“A hard spoon is a meta-protocol on top of a blockchain creating a token that inherits the blockchain’s underlying token’s balances. The idea of a soft spoon would be to create two competing *branches of a protocol* within *the same blockchain*”
In other words, a hard spoon takes place when an entirely new digital asset is minted by duplicating the account balances of a cryptocurrency that already exists. Therefore, OMG token balances are going to be duplicated onto a Tendermint chain which will be connected to Cosmos. These new tokens can then be redeemed as fee tokens within Cosmos.
The developers from both teams, OmiseGo (OMG) and Tendermint are collaborating to create the “Honte milestone.” However, due to the time, it would have taken to develop Honte, the teams then decided to work on Plasma which is taking shape much faster. Honte is going to be a Tendermint chain and through its staking along with the sufficient number of transactions, it would support the initial implementation of the OmiseGo Decentralized Exchange (DEX). Consequently, later developments would have the team shift from Tendermint onto Plasma. However, the teams understood what Plasma meant, besides it was developing much faster, so they had to shift their resources to develop Plasma. OmiseGo has a detailed explanation of both Plasma and Honte on the updated roadmap.
Staking is not going to be supported during the first stages of Plasma integration. This is to ensure that security is improved plus it will limit complexion. OmiseGo team explains that they have “a desire to show to the world a working and ready-to-use implementation of a Plasma-based scaling solution as quickly as possible.”
There is not going to be much competition between OmiseGo (OMG) and Cosmos because this is not a hard fork but a hard spoon. The teams are, in fact, collaborating on creating their platforms in the best way possible. Although some competition could be expected later between Tendermint and Plasma, this will most probably be a healthy competition. Cooperation is expected to continue between them even in the days after the launch.