Optimism ($OP ) is a Layer 2 solution that works on the Ethereum network. Its main purpose is to solve Ethereum's scalability problems and reduce transaction costs. Here is basic information about the Optimism project:
1. What is Optimism?
Optimism is a Rollup technology built on Ethereum. This technology processes transactions outside of Ethereum (off-chain) and sends the results to the Ethereum network. In this way, it provides both faster and cheaper transactions.
2. How does it work?
• Optimism uses a method we call Optimistic Rollup.
• In this system, transactions are considered correct by default and the verification process is started only if one of them reports an error.
• In this way, the transaction speed is very high and it benefits from Ethereum's security.
3. What is OP Token?
• OP is the governance token of the Optimism network.
• The development of the network and community decisions are determined by the votes of these token holders.
• It is also used for some incentive mechanisms (such as airdrop, liquidity incentives).
4. What Does Optimism Do?
• DApps running on Ethereum (e.g. Uniswap, Synthetix, Velodrome) can switch to the Optimism network, offering lower transaction fees and higher speeds.
• For developers, switching to Layer 2 greatly improves the user experience.
5. Who Are Its Competitors?
• Arbitrum (ARB)
• zkSync
• StarkNet
These projects also offer Layer 2 solutions and enable more efficient use of Ethereum.