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- 1 Optimism has emerged as one of the most promising projects in the emerging Layer-2 landscape.
- 2 The project offers some unique solutions to make Ethereum more viable. It inducts new technological solutions to bring scalability and security.
The Layer-2 solutions made their presence felt in the crypto domain. These advanced layers of blockchain are nothing but upgraded versions of the existing layer-1 structure. Optimism is one of the notable blockchains that have gained lots of attention from the community. Built upon Ethereum, this layer-2 mechanism takes the core functionality to a higher level. As a result, it acquired a total value locked (TVL) of $500 Million.
Optimism- A Brief Explanation
Optimism deploys something called optimistic rollups. These rollups record transactions in a trustless environment using off-chain computation. It’s the key component that makes Optimism a layer-2 solution. By creating a trustless environment, Optimism makes Ethereum secure for users. The whopping TVL value makes it one of the biggest scaling solutions in the blockchain domain.
It hosts a total of 97 protocols including Uniswap, Velodrome, Synthetic, etc. Crypto users can join this network by adding the chain using their Metamask wallets. They can bridge their tokens like ETH to layer 2.
Factors That Make Optimism Unique
As a layer-2 solution, Optimism achieves better throughput while utilizing minimum resources. It achieves that feature by enhancing the infrastructure and using proven Ethereum code. Thus, Optimism works directly with existing codebases while keeping it simple. Moreover, the ecosystem is driven by real-world assets. It promotes a pragmatic approach rather than working on estimations.
The advanced structure brings in features like EVM equivalence. For the uninitiated, EVM equivalent chains are programs that comply with the original ETH standards. They implement EVM codes and make smart contracts compatible with all ETH-based solutions. By design, Optimism focuses on achieving long-term sustainability. It avoids taking shortcuts for scalability and sticks to the trial-and-error method.
The process helps to weed out all the problems and build a flawless network. Deploying rollups, Optimism streamlines the consensus mechanism and extends it gradually. It stores and submits the transactions to the L1 structure which is Ethereum. However, for construction and execution, it uses the L2 mechanism which is Optimism. Devoid of any mempool, L2 accepts or rejects the transactions instantly.
As a result, Optimism exceeds expectations when it comes to security and scalability. When executing transactions through Optimism, Ethereum doesn’t require any direct proof of validity.
Token Management & Future Prospects
Optimism launched its airdrop on 31 May 2022. Its token distribution system has three objectives to fulfill.
- Dedicating a sizable amount of L1 data fee and L2 execution fee to the token holders.
- Gaining value from retroactive public goods funding and giving it to builders and contributors.
- Supplying a dedicated sum gained from project incentives and airdrops to community members and users.
Conclusion
The project began with an initial supply of 4,294,967,296 tokens. It maintained an inflation rate of 2% for the beginning year and dedicated 30% tokens for distribution. Boosting simplicity, pragmatism, and sustainability, Optimism shows strong potential. According to some experts, it could play a pivotal role in worldwide crypto adoption. Crypto users can buy Optimism tokens from major exchanges like Coinbase, Binance, Huobik, KuCoin, Bybit, and Gate.io.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
