In a way, Optimism takes away the burden of financial transactions from Ethereum. Layer 1 handles security, decentralization and data availability, while Optimism’s Layer 2 handles scaling.ĭuring the process, no changes are made to Layer 1. During a transaction, Optimism continues to communicate with Ethereum’s Layer 1 ensuring that it still offers similar security and decentralization guarantees. Optimism handles transactions off the Ethereum blockchain, while taking advantage of Ethereum's infrastructure. Optimism offers a scalable solution to the Ethereum network, which helps increase the speed of transactions on Ethereum without sacrificing decentralization and security. Besides paying a high gas fee, users on the Ethereum network must also endure long wait times for their transactions to clear. As a result, the gas price rises, making it significantly less affordable for an average user to benefit from a transaction. Once the blockspace becomes scarce, users on the Ethereum network enter a bidding war in an attempt to get their transactions on the next block. When this occurs, the Ethereum network cannot scale anymore and will become congested as a result. As of this writing, Ethereum has reached its capacity to handle more than one million transactions per day. To keep the network functional, the governing body behind Ethereum decided to sacrifice scalability for the sake of security and decentralization. However, because of the limitations due to the blockchain trilemma, Ethereum can only deploy two out of these three properties effectively. To keep everything running smoothly, the network is built around three properties: Decentralization, security and scalability. It's understood that Ethereum is one of the most secure and decentralized blockchains in existence. How Optimism Solves Scalability Issues on the Ethereum Network Scalability refers to the rate of transactions per second (TPS) on a blockchain network. It helps reduce the transaction fee and transaction time on the Ethereum blockchain.īroadly speaking, Optimism helps solve Ethereum’s scalability dilemma. Optimism is a Layer 2 scaling solution for Ethereum. This article explains why Optimism crypto stands out in a saturated market, the technology behind it, and what the future holds for investors of OP tokens. In other words, the system lets users conduct transactions when certain conditions are met, enhancing the efficiency of the blockchain.If you're looking for an intuitive crypto technology to invest in, consider Optimism. Last week, OP Labs also introduced its Drippie transaction system, “an Ethereum-native, trust-minimized conditional transaction mechanism” that aims to address the automation issues associated with on-chain activities.Īccording to OP Labs, “Drippie is basically an Ethereum-native version of If This Then That (IFTTT), a programmable Web2 service that can combine various triggers ('Kelvin sent a tweet') with actions ('email me the tweet')." Other improvements in the pipeline include optimized code that will allow nodes to sync 50 times faster, a 20% cut in the cost of data submission to layer 1 by roughly 20%, as well as support for several alternative proof systems, including the rival architecture called ZK-rollups. It promises a four-fold reduction in the time of deposits from layer 1 to layer 2-quite a significant achievement, if realized, given it can take up to seven days for the current Optimistic design to settle the dispute period within the validity of a transaction can be challenged. The Bedrock upgrade was first announced in May this year, and is described as “the cheapest, fastest, and most advanced rollup architecture” that ever existed. It will lay the protocol's foundation for years to come and serve as THE model for rollup architecture. Optimism Bedrock is coming soon™️, and when it does it will change the rollup game forever.
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