Optimism — A New Layer 2 Scaling Solution for Ethereum

The era of technical development is here. Technology is evolving at high speed, and more people are taking more interest in technologies. Several institutions and organizations are exploring such technologies and are in a move to implement them.

Ethereum is getting a lot of attention in the market. This blockchain technology is also influencing several technical enthusiasts. However, currently, security and decentralization are being prioritized in Ethereum. And “Optimism” is an important term associated with any Ethereum network’s security and decentralization aspects. So, let us find out more about it.

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Optimism: A new Layer 2 scaling solution for Ethereum

What is Optimism?

Optimism is currently known as “Optimistic Ethereum.” It is a solution formulated on Ethereum Layer 2 scaling. Precisely, it is an Optimistic Rollup. Similar to any other Layer 2 protocol, Optimism’s target is to become the network that can offer the same decentralization and security level that the Ethereum Layer 1 network offers.

Besides offering users reduced transaction fees, it also contributes to faster and more efficient transactional times. Thus, the Ethereum blockchain solutions are taking over, and several organizations are working on it to boost the efforts on Optimism.

Layer 2 — An Overview:

One of the most problematic things with the Ethereum network is its scalability. Rollups is a scaling solution that targets to enhance the all-over experience for the end-users. Ethereum is currently the most decentralized and secure blockchain that makes use of smart contracts.

But Ethereum is high on demand, and thus it is very much expensive to put to use for the average user. In case the network becomes busy, the block space turns scarce, and the users need to participate in a bidding war for getting their transaction into the next block.

The layer 2 scaling solutions target to fix this problem by managing the transactions ‘off-chain’. It posts a small “proof” to the Ethereum network to prove the accuracy of the data. This saves a lot of work and also makes it very affordable and more efficient for the end-users.

Applications available:

Right from the day of the launch of the network, it has started to gain attraction. A range of applications is offered by Optimism at present for public use.

It offers more than 60 dapps at present over the network. It includes several protocols like Lyra Finance, Synthetix, and Uniswap. Ethereum dapps great migration to the Layer 2 protocols like Optimism will pick up a high speed in the coming six to twelve months.

By the end of this year, we are expecting to see most of the protocols that are native to Ethereum Layer 1 perform the move over to layer Optimism. Particularly, this process will accelerate with more users starting migrating from Layer 1 to utilize the affordability and efficiency of Optimism Network.

If you want to get more knowledge about the availability of applications, you can get in touch with the companies that offer effective Ethereum crypto solutions.

Gas Fee Reductions:

One thing that cannot be ignored is the rise in Ethereum development. It is another factor that has pushed Optimism. Let us see how it contributes to gas fee reductions.

After updates to the network after implementing gas reductions, the cheapest transactional fees are being offered by Optimism across the Optimistic Roll Ups that are available. It includes heavy hitters such as the Boba Network and Arbitrum. At the writing time’s end, Optimism at present offers token swaps to its users for as low as $0.51, which is closely followed by the Boba network at $1.31, and Arbitrum at $0.63.

If you take a look in the upcoming six to twelve months or in the future, you can clearly see that the fees will continue to decrease with time up to the point where very close to zero gas token swaps can be offered. It has a simple concept behind it.

When more people onboard to Optimism, through the protocol fees, more revenue Optimism will be received. This offers a better budget to Optimism when it comes to paying the Layer 1 gas fees. This, in turn, decreases the fees for all the end-users.

EVM Equivalence:

Optimism offers an array of advantages, but the best one is that the network, at present, is completely EVM compatible. To be more specific, it means that the Ethereum stacks that were existing will currently integrate officially with the Layer 2 system of Optimism. It does not impact the experience of the end-user.

EVM equivalent has proved to be a great win for the developers because now a decentralized application can be deployed easily onto Optimism for the simple reason is that there is no need to make use of the tools that you will normally put to use while deploying on Ethereum.

Several Ethereum application development companies are emerging that are facilitating Optimism. So, in case you want to get guidance on EVM Equivalence, you can take their guidance.

The role of NFTs:

Ethereum wallet development is nothing new. But along with it, NFTs are getting a lot of traction currently. At present, Optimism offers a wide range of DeFi applications. But apart from it, let us see how the expansion is taking place in the network, specifically on the NFT front. Alongside several other solutions like Polygon and Immutable X, Optimism is placed.

A recent project named Quixotic has deployed their NFT marketplace onto the Optimism network directly and has bypassed Leyer 1 completely during the process. Currently, Quixotic is the very first NFT marketplace to deploy to Optimism natively. It gives the users the power to purchase and sell NFTs for a lesser cost than it would cost on any other Ethereum network.

Conclusion:

Optimism is correctly placed for continuing to pioneer the effort on Ethereum scaling into the future. The users can expect to see Optimism become cheaper and more efficient in the upcoming days because this particular technology is being developed further, and ways are being searched for implementing the new features of gas reduction.

In case you are looking to expose yourself, the Optimism network might be the right option for you. However, to know more about it, you must seek professional help from an experienced Ethereum development company.

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