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Optimism (OP) is a Layer 2 scaling solution for Ethereum.
What is Optimism (OP)?
In blockchain, there are generally three levels (also called layers):
Optimism is a layer 2.
Backed by Ethereum, it falls into the same category as Arbitrum and Polygon.
While they all work on Ethereum, there are differences.
For example, Polygon uses sidechain technology, while Optimism and Arbitrum use rollup technology.
On another front, Arbitrum has its own virtual machine, enabling it to support EVM-compatible programming languages.
Optimism’s virtual machine (OVM), on the other hand, is similar toEVM, so its language is Solidity.
The principle of a layer 2 is to divert part of the traffic away from the mainnet (layer 1) and process it off-chain.
This enables the network to handle a greater number of transactions, which also reduces costs.
At present (March 19, 2024), Optimism’s TVL is $906 million.
This amount is very close to that of Polygon.
On the other hand, Optimism is well behind Arbitrum and its more than $3 billion.
It is one of the top 10 blockchains in terms of TVL.
The price of the OP crypto is €3.
Optimism’s capitalization is €3.1 billion, positioning the token in the world’s top 50. Optimism’s vision Combined with Ethereum, Optimism’s objective is toimprove the scalability of the ETH blockchain.
This project is part of a much broader ambition to combat the excesses of capitalism by creating a model where profit goes to people who make a positive impact on society.
Optimism’s vision is to create a “fairer Internet that benefits everyone without belonging to anyone”.
Optimism describes itself as “a collective of businesses, communities and citizens working together to reward public goods and build a sustainable future for Ethereum.”
Find out more about the Optimism story below.
The genesis of the Optimism project dates back to January 2019 when Plasma Group was created.
Plasma Group is a non-profit collective that was working on Ethereum scalability.
In June 2019, Plasma Group incorporated the work of Ethereum co-creator Vitalik Buterin into its research.
The Optimism rollup concept was born!
In January 2020, the Plasma Group entity was dissolved to make way for Optimism Public Benefit Corporation (Optimism PBC).
The people behind Optimism PBC are Benjamin Jones, Karl Floersch, Jing Wang and Kevin Ho.
The alpha version of the Optimism Virtual Machine (OVM) was launched in February 2020.
To launch its mainnet, the Optimism team implemented a “defenses-in-depth” approach.
This is an incremental approach consisting of a multi-level deployment combined with audits to validate each stage.
Each level of defense is centralized.
As the project progresses and confidence grows, these “brakes” on decentralization are removed to make way for the public mainnet.
As part of this approach, an important milestone was reached with the “soft” launch in January 2021 of its mainnet, which consisted of the following three defense levels:
After several test runs on testnets, the mainnet was finally presented to the public on December 16, 2021.
Other key dates in the project are :
There are many layers 2 on the market.
Their objective remains the same: to relieve the mainnet (layer 1) by managing transactions outside the network.
However, the technology is different for each layer 2.
On today’s market, there are 4 types of layer 2: sidechains, plasma, channels and rollups.
Optimism has chosen to use rollups.
The special feature of rollups is that they leave the security aspects to the mainnet.
In concrete terms, this means that on Optimism, security is provided directly by Ethereum via a connection made by a smart contract.
This contract contains the essential data of layer 2 (in this case Optimism), such as addresses, balances, transactions and so on.
This smart contract is a kind of “state root” for layer 2.
Rollups enable transactions to be processed outside the Ethereum blockchain (“off chain”).
Once completed, these transactions are put back “on chain”, i.e. they are sent to Ethereum by sequencers for recording.
To save space and time, only the most important information (sender, recipient and amount) is recorded on Ethereum.
Block information is therefore compressed or “rolled up” on Ethereum, hence the name “rollup”.
Once published on Ethereum, the layer 2 state root is updated.
The main use of OP tokens is related to the governance of the Optimism Collective, which takes place on two levels:
TECHNICAL DATA
| Compatible Wallets | MetaMask, Trust Wallet, WalletConnect, Ledger, SafePal |
|---|---|
| TVL | 906 million dollars |
| Existing bridges | Wormhole, Peggy, etc |
| Capitalization | 3.1 billion euros |
| Transaction volume | 460 million dollars |
| Programming languages | Solidity |
| Consensus mechanism | POS (Proof-Of-Stake) (Ethereum) |
| GST | 2 000 |
Optimism’s TVL is $906 million (as of March 19, 2024).
Optimism’s ecosystem includes nearly 250 applications in the following fields:
At present, the main protocols running on Optimism in terms of TVL are :
The Superchain ecosystem is growing fast.
More and more projects are deciding to join Superchain to build their layer 2.
Optimism currently hosts the following layer 2s: Base, Fractal, Mode, Redstone, Zora.
Optimism is a layer 2 designed to boost Ethereum performance.
With Optimism, Ethereum DeFi users can transact faster and cheaper.
The layer 2 sector is booming, with new players arriving regularly.
Optimism’s strategic positioning makes it a crypto with great potential.
Indeed, there’s no end in sight to its growth, as layers 2 are currently essential to the mass adoption of layers 1 such as Ethereum.
So, while the Layer 2 sector is buoyant, it’s also highly competitive.
Optimism is enjoying considerable success, as demonstrated by its TVL.
On the other hand, the OP project is still lagging behind some of its competitors, such as Polygon and above all Arbitrum.
What’s more, rollup technology is constantly evolving.
Zk rollups are on the rise, and are tending to overtake… Optimistic rollups.
Optimism’s future depends on its team’s ability to integrate the latest technologies and attract ever more projects.
Like any financial investment, buying OP involves risks.
As a reminder, cryptocurrency is a field where prices are highly volatile.
We recommend that you find out about these risks and act accordingly.
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