OmiseGO (OMG) Blockchain To Be Used By Asian Uber ‘TADA’ For Recording Ride Data


On November 14, 2018, Mass Vehicle Ledger (MVL), the Singapore-based company behind the blockchain-based ride-hailing app TADA,  announced that they have signed a Memorandum of Understanding with the blockchain payment solution development company, OmiseGO (OMG).

According to the official press release, the two companies will collaborate on developing a Proof-of-Concept (PoC) solution for the TADA system, which will combine the two technologies.

TADA will test recording data of its rides on the OMG blockchain via the PoC. The use of the OMG token is unclear based on the information made available in the press release.

TADA data to be recorded on OmiseGO blockchain

The solution will be focused on recording data generated by TADA ride-hailing service directly on the OMG network, instead of the MVL’s blockchain.

Furthermore, it is widely believed that the only Ethereum-based project to ever been backed by Vitalik Buterin himself, OmiseGO will attempt to develop a cryptocurrency payment solution for TADA users.

We are pleased to sign an MOU with MVL to deliver a PoC for their ride-hailing service TADA,” said OmiseGo’s managing director, Vansa Chatikavanij, as he emphasized that this deal could serve to showcase the OmiseGO’s technological potential.

TADA quickly becoming popular

For all those unaware of the Asian market, TADA, which means “let’s ride” in Korean, resembles Uber, with the main difference in the fact that it utilizes the decentralized technology to store data on transactions, car movements, accidents, and traffic flow.

TADA launched on July 27th and since its system doesn’t charge any commissions for driver nor clients, it quickly took off as until the date, roughly 17,000 drivers began serving around 100,000 app users.

MVL already revealed that they are planning to expand their services to other countries in the south-eastern region of Asia, mainly South Korea, Vietnam, Cambodia, and Malaysia in the upcoming months.

A stress test for the OmiseGO (OMG) network

If the MoU bares fruit and all data traffic from TADA gets transferred to the Ethereum-based OMG network along with the planned crypto payment system, it could present a serious test of network’s ability to scale.

Currently, OmisoGo network is said to be capable of around 100 transactions per second (TPS), which could be seriously challenged if TADA gets a wider recognition. However, the team has scheduled Plasma upgrade for Q4 2018, which is supposed to enable scaling of OMG ecosystem to support up to 1 million TPS.

If OmiseGO successfully implements their technology on MVL’s product and manages to sustain the data traffic, it would be the best commercial beta test for further adoption.

The price remains unresponsive

We became used to the fact that announcements of partnerships are unable to impress investors, and such is the case with OmiseGo. In fact, the announcement came right in the midst of a market-wide selloff.

After the quick decline of OMG’s price from $3.19 to $2.66, caused by the overall mini-crash of the market on November 14, 2018, the cryptocurrency failed to bounce back.

OmiseGO (OMG) Blockchain To Be Used By Asian Uber 'TADA' For Recording Ride DataOMG token is currently 24th biggest in the market, trading around $2.73, with the market capitalization of $381 million, and 24-hour daily trading volume fluctuating around $25 million.

Considering the fact that at the beginning of the year OMG reached what now seems to be an astronomical price of $26.14, it looks like it will take a lot of effort to reach those heights again.

Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your own research and/or consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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