Optimism, The Latest Ethereum L2
A scalability solution for Ethereum Bedrock is an upgrade from Optimism that increases speeds and lowers prices for customers who trade over the L2 network.
Optimism is a rollup: A Layer 2 scaling solution that aggregates transactions from many block chains and feeds them back to Ethereum as a single transaction. Rollups benefit from the security while lowering transaction fees.
What is Optimism?
One of the Layer 2 Scaling solutions is optimism. Optimistic rollups, a technology that bundles massive volumes of transaction data into manageable portions, lies at the heart of it. Optimism is far less expensive to use than Ethereum, and it’s growing in popularity alongside other layer 2s like Arbitrum.
Transactions take place on Optimism, but transaction data is posted to the mainnet, where it is verified. It’s like driving down a less congested side street while still having access to the safety of a motorway.
Optimism VS Arbitrum
Arbitrum has recently experienced tremendous growth. From a zero round to the most effective achievement on Ethereum, the rally began on August 31, 2021. However, Arbitrum’s Total Value (TVL) is currently only $ 1.8 billion. In October, though, its growth begins to halt, and Optimism threatens to overtake it.
Arbitrum witnessed a decrease in both participation and network utility. The trade volume on Arbitrum has plummeted to a little under 15,000 from a high of 270,000 in August. This figure is lower than Optimism.
Optimism has announced the launch of a new token called OP, as well as an airdrop for it. They also unveiled a new governance structure designed to promote ecosystem development and Web3 development.
Early adopters, such as Optimism users, return users, DAO voters, multisig signers, Gitcoin donors, and people priced out of Ethereum, will benefit from the airdrop. Future airdrops have been allocated 14% of the total initial token supply.
Now that we have a slew of L2 solutions, with more on the coming, is Ethereum on the right track, or are they merely complicating things? Layer 2 solutions will benefit Ethereum, but they will also increase the risk of security!
This article was written by Quratulain Zaheer.