A much anticipated L2 scalability solution for Ethereum, also known as Optimism, guarantees quick and less expensive ETH transactions by offloading the network’s mainnet with the help of its unique rollup technology. Let’s talk about how users can benefit from implementing Optimism crypto into their projects.
What is Optimism (OP)?
First and foremost, the protocol is intended to increase the speed of ETH transactions and reduce associated costs while tackling the blockchain trilemma intertwined with such concepts as scalability, decentralization, and security.
Launched by the Public Benefit Corporation, Optimism is integrated into Ethereum’s main and testnets, therefore it supports all Ethereum-based dApps deployed on Optimism. The solution can swiftly process off-chain transactions. While the cost is significantly reduced, decentralization and security are still there.
Currently, Optimism is known as one of the most advanced and safest scaling solutions for Ethereum due to its ‘fault-proof’ design. According to the platform’s development team, Optimism crypto is built on four key principles, namely simplicity (reduced complex engineering), pragmatism (real-world utility-oriented), sustainability (aimed at long-term progress), and optimism (optimistic future for Ethereum).
Optimism explained for beginners
So far, the network is used to build various types of EVM-compatible dApps, smart contracts and other Web3 technology-based products.
N.B. Check out GetBlock’s guide on how to build a dApp
Why is Optimism good for Ethereum?
Whereas Ethereum is a successful and arguably the most popular network for decentralized application development, it has a limited capacity, meaning that ETH nodes can only process a certain number of transactions at the same time. Besides, its slow speed and extremely high transaction fees make it inaccessible for a good chunk of global users.
While the second-largest cryptocurrency platform is actively preparing for the big Merge set for September, optimistic rollup strives to offer top-notch efficiency, decentralization, and security to ETH users.
Optimistic rollup explained
The L2 scaling solution utilizes a unique optimistic rollup technology, which enables the capability to roll up (or aggregate) transactions in batches. These bundles are later processed via another chain - offloading the processing from the Ethereum network.
The word ‘optimistic’ refers to the assumption stating the validation of all on-chain transactions, unlike zk (zero-knowledge) rollups - another popular kind of L2 scaling solution, where transactions depend on the ‘validity proof’.
How to use Optimism
Optimistic ETH is a rollup technology-based chain compatible with the Ethereum Virtual Machine and intended to show faster speed and require less fees.
In order to use Optimism, you need to connect your wallet to the Optimism network (you can use the MetaMask browser extension). After the connection is secured, please use the Optimistic Ethereum Gateway and decide on the amount of ETH you wish to deposit. Click ‘confirm’ to verify the bridge. Now your tokens are visible on Optimism. You can either withdraw or trade your assets via a trading crypto platform, such as UniSwap.
Optimism: benefits and risks
Pros
Optimism is a L2 scaling solution with the main purpose of executing off-chain transactions compressed into rollups, or batches, onto the Ethereum mainnet. The network’s second layer is built on top of Ethereum’s L1 and designed to imitate its code. This also makes it possible to send any EVM-compatible assets between the two platforms. Optimism reduces transaction fees and creates the perfect environment for Web3 developers to access and work with Ethereum in a much more efficient way.
Cons
The risks associated with utilizing the scaling solution include a 7-day lock-up period for withdrawing back onto the ETH mainnet. This can be solved with a liquidity provider, however, a user would have to pay a fee. What’s more, users can only utilize dApps created on Optimism with little to no access to other platforms. However, the issue can be solved with the help of Connext Network.
FAQ
How to add Optimism to MetaMask?
- Download MetaMask;
- Open the browser extension; select Ethereum Mainnet;
- Change to Custom RPC;
- Type in the Optimistic Ethereum details and click ‘Save’;
- Now your funds are ready to bridge!
How to bridge to Optimism?
Send the amount of ETH you want to bridge via the Optimistic Ethereum Gateway;
Click ‘Deposit’ to confirm the bridging process;
The confirmation processing time can take up to 10 mins;
Once complete, the funds are available on the Optimism network.
How to buy Optimism?
Optimism (OP) can be purchased via multiple crypto trading platforms, such as Binance, Coinbase, Gate.io, KuCoin, Huobi.
First, compare the conditions offered by crypto exchange platforms, such as additional fees, customer support, account requirements, etc.
Create an account and make a verified deposit.
Now you can exchange your assets for OP in the way that you want - bank transfer, P2P, credit/debit card, and so on.
Final thoughts
The ability to scale Ethereum helps attract a larger number of users on a global scale, therefore making the dApp development more accessible and creating new opportunities for Web3 technology improvement in the future.
Optimism is a great example of a L2 scaling solution for ETH with high security, fast speed and low transaction costs. Not only that, but the network’s thorough and easy-to-access design is what makes it a popular choice among Web3 developers.
To integrate Ethereum and Optimism nodes’ endpoints today please log in to your GetBlock account and choose our shared or dedicated nodes solution.
If you need custom settings, please, reach out to our customer care team.
