Optimism is one of the biggest Ethereum scaling solutions. It is a Layer 2 blockchain addressing the issues of scalability and high transaction fees on Ethereum by using Optimistic Rollups to offer efficient yet secure transactions. Optimism’s native token, OP, is used for governance and paying transaction fees. Buy OP instantly with Guardarian or keep reading to know more.
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To achieve scalability, Optimism uses Optimistic Rollups - a way of processing transactions off-chain in what is known as the Optimistic Virtual Machine (OVM). Transactions are then bundled and verified on the Ethereum mainnet using its security features. This approach ensures fast, secure transactions with significantly lowered transaction costs.
Developers can seamlessly deploy dApps and smart contracts on the Optimism network, which explains its popularity within the Ethereum ecosystem. Users can interact with Optimism dApps using their Ethereum addresses and easily transfer their assets between the two blockchains.
In 2022, Optimism airdropped OP, its native token. It is used for governance and paying transaction fees on the Optimism network.
Optimism is currently one of the biggest Layer 2 blockchains on the market, alongside Polygon and Arbitrum. As of May 2023, it is the 6th biggest blockchain in terms of its Total Value Locked (TVL), which shows the popularity of the project and the high activity levels on the network. Though it is hard to predict the future performance of OP, many investors believe in long-term growth for the token due to Optimism’s practical and sustainable design and the predicted growth of the DeFi sector.
Optimism has a solid roadmap that includes the introduction of sharded rollups among other technical solutions that would make it even more scalable and efficient. There is also a Superchain project - a plan to create a network of interconnected blockchains to achieve horizontal scalability and avoid isolated ecosystems.
Though it is hard to predict the future performance of OP, many investors believe in long-term growth for the token due to Optimism’s practical and sustainable design and the predicted growth of the DeFi sector.
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