This stack exchange seems to say that OMNI was just a way to keep track of data in OP_RETURN fields: https://bitcoin.stackexchange.com/questions/101326/does-bitcoin-have-omni-layer

That means it was "spamming" or filling up data and probably failed when transaction costs went up.



moel

Points:

- High cost 
- Necessary run Bitcoin Core
- Isn't full scalability 

Rsync25

Yes, it was pretty much like BRC-20. [Colored coins](https://en.bitcoin.it/wiki/Colored_Coins) was the broad term used back then.

037447d9ca

bitcoin_beginners

I've read somewhere that Tether originally used the OMNI-Layer on top of Bitcoin. Was it like a BRC-20 token? Or was it a side chain? Or more like a multisig wallet to create payment channels (like lightning does today)? 

I am curious how OMNI worked, and why it failed (did it not scale? or where transactions getting too expensive?)