The Omni Protocol (formerly Mastercoin) is a protocol layer on top of which new projects can be built, with new rules and specifications. It serves as a platform for users to build their own currency, using simple tools, without having to develop new software. This was originally added on top of Bitcoin in order to fix issues relating to stability and security. It also serves to add value to the Bitcoin ecosystem, and consolidates the original message it was trying to achieve. It has now been used in top cryptocurrency projects such as Tether (USDT) and MaidSafeCoin (MAID). In order for the Omni layer to be implemented, the code of the original protocol does not need to undergo any major changes.
HyperCash (HC) has newly implemented and tested the Omni Protocol on top of the HC blockchain, of which the performance capabilities, in terms of confirmation time and transaction fees exceeds that of Bitcoin, and in terms of TPS (transactions per second) greatly exceeds that of both Bitcoin, and Ethereum’s ERC-20. This is exemplified in Table 1. Additionally, the HyperCash Omni Layer provides a post-quantum algorithm, ensuring the robustness and security of tokens, even when quantum computers inevitably become practical.
Its benefits as compared to the popular ERC-20 standard extend to the act of issuing tokens itself. Whilst with the original ERC-20 standard, token issuers need to have the ability to edit and write code, the HyperCash Omni Layer allows token issuance in just a few clicks.
A prototypical example of a token issued via the Omni Layer Protocol is Tether, built using the Bitcoin blockchain.
On top of the Bitcoin blockchain is the Omni layer, which allows the creation and destruction, storage, and tracking of tokens — in this case, Tether. On top of that is Tether’s own layer, enabling key features which Tether has developed to maintain the various aspects of functionality of their token. Their detailed explanation can be found here, on page 6.
Similarly, the implementation by HyperCash works in layers, however, the base layer is the HyperCash blockchain. This gives this implementation its benefits, allowing 4x faster confirmation times, more than 42x more tranactions per second, at a fraction of the cost in transaction fees. New tokens can be issued on top of the HyperCash Omni layer with ease, which inherit its benefits, as well as providing a decentralised exchange, browser-based wallet encryption, accountability, multi-party security, and reporting functions. More information can be found here.