What is Optimism (OP)?
Optimism is a Layer-2 blockchain designed to enhance the scalability and efficiency of Ethereum using Optimistic Rollups technology. This technology allows transactions to be processed off the main Ethereum chain (off-chain) to reduce costs and transaction times, while still leveraging the security of the Ethereum network. Transactions are batched together and sent to Ethereum for finalization, assuming transactions are valid unless proven otherwise through a fraud proof mechanism.
The OP token is an ERC-20 standard-based token used for:
Governance: OP holders can participate in the Optimism Collective, a decentralized governance system, to vote on decisions such as protocol upgrades and fund allocations.
Transaction Fees: OP is used to pay transaction fees on the Optimism network.
Network Incentives: Used to reward network participants and support ecosystem development.
