Optimism uses optimistic rollups to batch a lot of transactions together and process them at a fraction of the original cost. This is why layer-2 (or L2 for short) scaling solutions for Ethereum came to be and are so popular. It goes against the ideas and narratives about crypto helping all people take finance into their own hands. High demand and the fee structure that prioritizes higher tips make it costly to use for some users. Most of them utilize both regular and non-fungible tokens (NFT). At the same time, it hosts a huge ecosystem of decentralized finance (DeFi), Web3, and gaming projects. The project’s tagline is, “Optimism is Ethereum, scaled”.Įthereum’s current throughput is around 15 transactions per second. Since it’s a layer-2, it means the network is an extension to Ethereum to help transfer ETH and ERC tokens. Optimism is a layer-two solution for Ethereum that provides faster and cheaper transacting with the help of rollups. To develop the Optimism ecosystem, the Optimism Collective has complex systems of governance and funding that use the OP token. Using Optimism requires you to bridge ETH or ERC tokens first because technically it is a separate blockchain from Ethereum.It greatly increases the speed and throughput of transaction processing at the cost of a long withdrawal period The main technology called optimistic rollups batches transactions and posts them as is in a Merkle tree to Ethereum.It relies on the main chain for arbitration but handles transaction processing itself, much faster and cheaper than layer one Optimism is a layer-two scaling solution for Ethereum.How does it work? What’s in the name? Does it have a token? What for? Find all the answers below! Key Takeaways In this beginner-friendly guide, we review one of the leading layer-two solutions - Optimism. The demand is as high as ever, and the solutions are no longer scarce in number. The problem of scaling Ethereum almost seems to be evergreen.
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