Optimism (OP) Complete Guide - Everything About Ethereum Layer 2 Solutions
Hello! Are you curious about Optimism (OP), which is getting a lot of attention these days?
Today, I'm going to tell you everything about Optimism (OP) from A to Z.
I'll explain it step by step so that even those who are not familiar with blockchain and virtual currency can easily understand it!
A Complete Introduction to Optimism (OP)
Optimism is an innovative Layer 2 scaling solution in the Ethereum ecosystem, and is a cutting-edge technology developed to solve the scalability problem of blockchain. Simply put, you can think of it as the 'highway' of the Ethereum network!
The existing Ethereum network was slow in transactions and had high fees, as if there were too many cars on a narrow road. Optimism has introduced an innovative method to solve this problem by quickly processing transactions off-chain and recording only the final results on the main Ethereum network.
The biggest feature of Optimism is that it uses the 'Optimistic Rollup' technology. This technology 'optimistically' assumes that transactions are basically valid and processes them, but verifies them only when problems occur. This results in tremendous speed improvements and cost savings.
• Transaction processing speed: Approximately 2,000 transactions per second (100x faster than Ethereum)
• Fee savings: 90-95% savings compared to existing Ethereum
• Confirmation time: Transactions completed within 1-2 seconds
• Security: Same security level as Ethereum mainnet
Optimism (OP) Birth Background and Development History
Optimism's history began in 2019 when Ethereum's scaling problem became serious. At the time, Ethereum's network was extremely congested due to the DeFi boom, and transaction fees often reached tens of dollars. In this situation, many developers began to pay attention to Layer 2 solutions.
The Optimism team began full-scale development in early 2020 and launched a testnet at the end of the same year. In 2021, we started a limited service through the mainnet soft launch, and we received a lot of attention as major DeFi protocols such as Uniswap were deployed to Optimism.
2022 was a special year for Optimism. OP tokens were launched, and the governance system was introduced, evolving into a truly decentralized project. We also conducted an airdrop during this period to distribute OP tokens for free to early users.
Currently, Optimism is operated through a governance system called Optimism Collective, and has grown into a truly community-driven project with developers and users from all over the world participating.
Optimism (OP)'s core technology and operating principles
The core of Optimism is the 'Optimistic Rollup' technology. To understand this technology, let's take a simple analogy. Think about when a bank processes a check. The bank doesn't verify every check individually, but assumes it's valid and processes it, and then investigates if there's a problem. Optimism works in a similar way.
Here's how it works in detail. First, when a user requests a transaction on the Optimism network, the transaction is processed immediately and a confirmation message is sent to the user. Second, multiple transactions are bundled into a single batch and submitted to the Ethereum mainnet. Third, during the 7-day challenge period, anyone can challenge the validity of the transaction.
If no issues are raised during the challenge period, the transaction is finalized. On the other hand, if an issue is raised, it is verified through the Fraud Proof system, and the incorrect transaction is rolled back. This system allows for fast processing speeds and high security at the same time.
| Items | Ethereum | Optimism |
|---|---|---|
| Transaction Speed | 15-20 TPS | 2,000+ TPS |
| Average Fee | $10-50 | $0.1-1 |
| Confirmed Time | 1-2 minutes | 1-2 seconds |
| Final settlement | Immediately | 7 days |
Practical use cases and ecosystem of Optimism (OP)
Optimism is not just a technology, it is building a huge ecosystem. Currently, more than 200 projects are operating on Optimism, providing innovative services in various fields.
DeFi (Decentralized Finance) Ecosystem: Major DeFi protocols such as Uniswap, Synthetix, and Velodrome are actively operating on Optimism. In particular, Uniswap V3 is recording a huge transaction volume on Optimism, providing token exchange services to users with low fees.
NFT and Game Ecosystem: NFT marketplaces such as Quix and OpSea are operating on Optimism, and many blockchain games are also providing better game experiences by utilizing low transaction fees.
Social and Community Platforms: Web3 social platforms such as Farcaster are creating new social experiences by utilizing Optimism's fast speed and low fees.
Infrastructure and Development Tools: Core infrastructure projects such as Chainlink and The Graph also support Optimism, providing an environment where developers can build dApps more easily. There is.
The role and value of the Optimism (OP) token
The OP token is not just an investment vehicle, but a core governance token of the Optimism ecosystem. Users holding OP tokens can participate in important decisions that determine the future direction of Optimism.
If we look at the main roles of the OP token, first, it has the right to participate in governance. You can vote on important agenda items such as protocol upgrades, fee policy changes, and ecosystem funding decisions. Second, you can participate in sponsorship decisions for public good projects through the RetroPGF (Retroactive Public Goods Funding) program.
What is particularly noteworthy is Optimism's 'Impact = Profit' philosophy. This is an innovative approach that allows projects that have a positive impact on the ecosystem to receive more rewards. Already, millions of dollars have been distributed to public good projects through several RetroPGF rounds.
• Direct purchase from exchanges
• Airdrop through use of Optimism ecosystem dApps
• Governance participation rewards
• Liquidity provision rewards
• Participation in RetroPGF program
Complete summary of Optimism-supported exchanges and platforms
As the Optimism ecosystem grows, the number of exchanges and platforms supporting it has also increased significantly. Optimism-related services are available on both centralized exchanges (CEX) and decentralized exchanges (DEX).
Major centralized exchanges: You can trade OP tokens directly on Binance, Coinbase, Kraken, Upbit, Bithumb, etc. In particular, these exchanges have started supporting direct deposits and withdrawals to the Optimism Network, allowing you to move assets at even lower fees.
Decentralized exchanges: Within the Optimism Network, you can use DEXs such as Uniswap, Velodrome, and ZipSwap. In particular, Velodrome is an Optimism native DEX that offers high yields and various token pairs.
Bridge Service: In addition to the official Optimism bridge, you can transfer assets through various cross-chain bridges such as Hop Protocol, Synapse, and Multichain. Each bridge has different fees and speeds, so it is important to choose the right bridge for your situation.
Active Optimism Community and How to Participate
One of Optimism's greatest assets is its active and healthy community. This community, operated under the name of 'Optimism Collective', is an open space where developers, users, and investors from all over the world can participate.
Official Community Channel: The Optimism Discord is a space where active discussions take place 24 hours a day. Here, you can communicate on various topics from technical questions to governance discussions. There are also active community activities on Telegram, Twitter, and Reddit.
Korean Community: In Korea, information related to Optimism is shared in KakaoTalk open chat rooms, Discord Korean channels, Naver Cafe, etc. In particular, communities such as DeFi Korea and Blockchain Hub Korea regularly hold Optimism-related seminars and meetings.
Participation in Governance: If you hold OP tokens, you can write proposals or participate in voting in the Governance Forum. You can also participate in the Optimism Citizens House and serve as a judge for the RetroPGF program.
• The fastest access to the latest information and updates
• Priority access to airdrops and incentive programs
• Discover new opportunities through networking
• Technical problem solving and learning opportunities
• Opportunity to directly contribute to the development of the ecosystem
Optimism Wallet Setup and Usage
To use Optimism, you must first set up a wallet. Fortunately, you can use your existing Ethereum wallet as is, so there's no need for any complicated setup.
MetaMask Settings: Adding the Optimism network to the most popular MetaMask wallet is simple. Open MetaMask, click 'Add Network' in the network list, and enter the network information provided by the official Optimism website. An easier way is to add it with one click on chainlist.org.
Other Wallet Options: In addition to MetaMask, Optimism is supported by various wallets such as Rainbow Wallet, Argent, and Trust Wallet. Each wallet has its own unique features, so choose the wallet that best suits your usage pattern.
How to transfer assets: To transfer assets from the Ethereum mainnet to Optimism, you need to use a bridge. The official Optimism bridge is highly secure, but there is a 7-day waiting period for withdrawals. If you need to transfer assets urgently, you can use a third-party bridge, but you should consider that there are additional risks.
• Network Name: Optimism
• RPC URL: https://mainnet.optimism.io
• Chain ID: 10
• Currency Symbol: ETH
• Block Explorer: https://optimistic.etherscan.io
Optimism Investment Strategy and Risk Management
Here are some things you should know before investing in Optimism. As with any investment, sufficient study and careful judgment are the keys to success.
Fundamental Analysis: When evaluating the investment value of Optimism, you should comprehensively consider its technical excellence, ecosystem growth potential, team capabilities, and community activity. In particular, it is important to consistently monitor indicators such as TVL (Total Value Locked), number of daily active users, and trading volume.
Technical Analysis: When analyzing the price chart of OP tokens, you should also consider the movements of Bitcoin and Ethereum. Also, trends in the entire Layer 2 sector and trends in competing projects are important analysis factors.
Risk factors: There are major risk factors to consider when investing in Optimism. These include technical risk (smart contract bugs, bridge hacking, etc.), competitive risk (intensifying competition with other Layer 2 solutions), regulatory risk (changes in cryptocurrency regulations in each country), and market risk (volatility of the overall cryptocurrency market).
Diversified investment strategy: Rather than going all-in on Optimism alone, it is advisable to build a portfolio with other Layer 2 solutions. Consider other scaling solutions such as Arbitrum, Polygon, and Starknet.
• Never invest for living expenses or emergency funds
• Invest within 5-10% of total assets
• Set and maintain stop loss criteria in advance
• Rebalance your portfolio regularly
• Avoid emotional investment decisions
• Gather information from various sources
Optimism's Roadmap and Future Prospects
Optimism's future looks very bright. Looking at the roadmap released by the development team, more innovative features will be added in the future.
Superchain Vision: Optimism is not a single chain