ICsues like transaction fees and scalability have always been a dilemma on Ethereum. But now you don’t have to be tired of these problems anymore as more and more Layer 2 projects appear. Optimism is arguably one of the best options out there and this ecosystem gets a lot of it. the attention of the Ethereum community recently. So through the following article, let’s find out what exactly is Optimism Crypto?
So, What is Optimism Crypto in Details?
Optimism or Optimistic Ethereum (OE) is a Layer 2 scaling solution that allows users to send transactions on the Ethereum network at much faster speeds and much lower gas fees than usual. The API of the Optimism network largely uses the same JSON-RPC specification as Ethereum, allowing users to build a fully functional application.
To speed up transactions, Optimistic roll ups will not calculate transactions, but will use a fraud proof mechanism to ensure transactions are legit and avoid fraud. If someone notices a fraudulent transaction, rollups will perform anti-fraud and run the transaction’s computation, using available state data. This means that users can have a longer transaction confirmation time than ZK-rollup because transactions can be challenged.
Basically, users can send transactions on Optimism similar to Ethereum, but will get the following core benefits:
- Transaction processing speed: Users can almost immediately know if their transaction is taking place or not.
- Transaction fees are much lower than the Layer 1 solution: only 1% to 10% of the cost on Layer 1.
- Scalability and dApp building: Full support for EVM. Ethereum-based dApps or EVM-compatible dApps can simply run on Optimism.
- Decentralization: All transactions are posted to Layer 1 Ethereum, while inheriting the strong security guarantees of Ethereum.
Structure of the Optimism platform
This is the main foundation aka Layer 1 of Optimism.
This is the core to the extension of Optimism. Simply put, the Optimistic Rollup will aggregate a group of individual transactions on the Ethereum network into a single transaction. These transactions are then taken off the main blockchain for processing on a Layer 2 sidechain and sent back to Ethereum.
This mechanism will help reduce the transaction volume that Ethereum has to process, thereby reducing gas fees significantly.
Optimism Virtual Machine (OVM)
This is a virtual machine compatible with Ethereum, allowing projects to operate similarly to Layer 1. OVM is an environment to run Ethereum’s Smart Contracts, which can increase scalability compared to EVM to support processing. a large number of SmartContracts in a certain time.
Overview of the Optimism Ecosystem
– Chainlink: Oracle is now on Optimism, providing data for Dapps on the Optimism ecosystem.
– Etherscan: Blockchain Explorer by Optimism
– OG Gnosis Multisig: An infrastructure piece that allows creating multisig on the Optimism system.
– Infura: Provides API and Development tools with fast connectivity to Ethereum and IPFS networks to develop next-generation software.
– Alchemy: Removes the hassle of hosting nodes, and at the same time provides world-class developer tools.
– Quicknode: Provides API gateway and user-friendly control interface for easy access to Optimism
– Tenderly: Eliminates transaction errors, optimizes costs and checks for resolved variables
– Get Block: Developer Tools
– The Graph: Index protocol on Optimism.
– Dune Analytics: Allows activity to be discovered on the Optimism network and also creates aggregators.
– Rarai Capital: Provides a decentralized and trusted method to send messages
– Optimism Gateway: This is a Native bridge that allows you to transfer ETH from Ethereum to Optimism. Note, bringing funds from Ethereum to Optimism is extremely fast, but withdrawing takes a long time, sometimes up to 1 week.
– Hop Exchange: You can transfer ETH, USDT, USDC, DAI from Ethereum, Arbitrum, xDAI, Polygon to Optimism as well as withdraw.
– Teleport: Move ETH to Optimism for only a fraction of the cost
– Celer Bridge: Multi-bridge có thể kết nối với Ethereum, BSC, Polygon, xDai, Avalanche, Fantom,…
–Lyra: A native AMM for options built on Optimism.
– Synthetix: Synthetix was one of the first applications to work on Optimism. The operation of Synthetix on the Optimism ecosystem brings the operation of a major stablecoin in the market on Optimism – sUSD.
– Kwenta: An application that allows trading of real world assets and on-chain derivatives, built on Synthetix.
– Uniswap: One of the first apps to be uploaded to Optimism
– Rubicon: Is a DEX with an Order book mechanism.
– 1inch: Aggregator protocol of 1inch works on Optimism.
You can refer to the following wallets to use and connect with Dapps in the Optimism Ecosystem: Metamask, Coinbase, Rainbow, TokenPocket, DeBank, Zapper, Zerion, Trust Wallet, imToken, Rabby, Encrypted Ink.
- Total number of separate wallet addresses: 311,000
- Number of projects running on Optimism: 97 projects
- Swap fee on Uniswap: $1.25
- Peak Uniswap swap fee: $30
- Token transfer fee on the network: 0.9
- Peak network token transfer fee: $20
- Deploy Dapps without permission: Yes
Basic information about OP token
- Token Name: Optimism
- Ticker: OP
- Blockchain: Optimism
- Token Standard: ERC-20
- Contract: 0x4200000000000000000000000000000000000042
- Token Type: Governance
- Total Supply: 4.294.967.296 OP
- Circulating Supply: 214.748.364 OP
- 25% Ecosystem Fund: The Ecosystem Fund is a proactive program that stimulates growth in the Collective Ecosystem by providing funding to projects and communities.
- RetroPGF 20%: RetroPGF is the main mechanism of Optimism Collective.
- Users airdrop 19%: A series of airdrops will reward users, starting with Airdrop #1.
- Contributors 19%: People who have contributed to Optimism development.
- Sugar Xaddies 17%: Investors
Token Release Schedule
- June 2019: Introducing Optimistic Rollup.
- October 2019: Launched Optimistic Rollup PoC.
- September 2020: Launching EVM Compatible Testnet.
- January 2021: Launch of Alpha Mainnet.
- August 2021: Launch of EVM Equivalent Mainnet.
- December 2021: Official launch of Mainet.
- 2022: Launch of the next generation of Fault Proof algorithms.
- 2023: Split Rollup, launch Incentivized Verification and Decentralized Sequencer mechanisms.
- 2024: Fault Proofs adjusted on Layer 1.
- Co-Founder: Kevin Ho. Graduated from the University of Pennsylvania majoring in computer science. Before joining Optimism, he was a Hacker at Crypto Economics.study.
- Co-Founder CEO: Jinglan Wang. Before joining Optimism, she was Researcher at Ethereum Foundation, blockchain engineer at Consensys.
- Co-Founder: Karl Floersch: Previously, Karl worked for Goldfinch, a leading crypto lending platform..
In the past, Optimism has raised a total of 178.5 million USD from 3 funding rounds: Seed Round, Series A, Series B.
Paradigm, a16z, IDEO CoLab Ventures are 3 prominent investment funds that have poured money into Optimism in funding rounds.
Optimism has gradually completed the ecological puzzle pieces. Overall, Optimism is an outstanding project that has received investment from many of the world’s leading investment funds as well as the solution of the project is highly applicable when helping the Ethereum network to solve the problems that Ethereum is facing. such as high transaction fees, slow processing speed as well as unoptimized scalability. However, the project also needs more time to complete to gain trust with users.