The Omni Layer is a protocol that is built on top of the Bitcoin blockchain. It’s an open-source platform that allows for the creation and trading of custom digital assets and currencies. It is the foundation for creating tokens, like Tether (USDT), which is a stablecoin pegged to the value of the US dollar.
The Omni Layer enhances the Bitcoin blockchain by adding additional features and functionalities, including:
- The creation of custom tokens or assets: You can create your own digital assets with their own properties and rules.
- Peer-to-peer trading: The protocol includes a decentralized exchange where you can trade digital assets directly with others.
- Smart contract features: Omni Layer supports simple smart contract functionality, although not to the same extent as platforms like Ethereum.
The Omni Layer was originally named Mastercoin when it was first proposed in 2013. It’s one of the earliest efforts to build additional functionality on top of the Bitcoin network. While it hasn’t gained as much widespread use as some other platforms like Ethereum, it’s notable for being the platform that Tether was originally issued on.