When it comes to developing a DAPP or a crypto protocol, the Ethereum network is the preferred choice of blockchain users . With Solidity, it has made the whole process of creating and deploying DAPPS like a walk in the park for developers.
However, the fame came with a cost in the form of network congestion & high gas fee. Although Ethereum is switching over to ETH 2.0 with a proof-of-stake consensus mechanism, these problems still remain in the vicinity. To address them and make Ethereum an efficient & user-friendly blockchain, we have Optimism Crypto Blockchain.
Optimism is here to take the load off the network, resulting in faster transactions & lower gas fees. A layer 2 chain, can it deliver what the industry needs? Let’s find out in this review –
Short on time? Checkout the Optimism Crypto Web Story.
What is Optimism Crypto Blockchain?
Optimism is the layer 2 blockchain built on top of the Ethereum network. The project came to life in June 2019 & launched the testnet in Oct 2019. It took 2 more years to launch the Ethereum Virtual Machine (EVM) compatible Alpha mainnet. The event was then followed by the mainnet launch in December 2022.
Just like any other layer 2 network, Optimism is a scaling solution for the Ethereum blockchain. It aims to bring down the gas fee & promote faster transactions without compromising security & decentralization.
Optimism has $354 million TVL in its smart contract, making it the second-largest rollup chain after Arbitrum.
How does Optimism work?
Optimism deploys special rollups called optimistic rollups where it rolls up multiple transactions into a single transaction and sends it back to Ethereum blockchain. If this reminds you of ZK rollups by Polygon (MATIC), congratulations! you have a better understanding of blockchain technology.
As of June 2022, Optimism secured $784 million on chain value.
The rolled-up transactions are stored in the Ethereum smart contract called Canonical Transaction Chain. When a user submits the transaction to this chain, a new block is produced by the sequencer who also validates & confirms the transaction and subsequently executes blocks on the Optimism chain.
Later the sequencer compresses the data before submitting it back to the Ethereum blockchain. Since Optimism is EVM compatible chain, users can send ERC-20 tokens between Ethereum & Optimism.
Optimism saves 67X times the gas fee charged on the Ethereum network.
How to use the Optimism network?
Using Optimism is similar to using any other blockchain network. Since its Ethereum based Layer 2 chain, the address will be the same as your Ethereum mainnet address. In order to access the network, the user needs to deposit ETH (for the gas fees) to his wallet from another chain like Ethereum, Avalanche (AVAX) etc or from the wallet supporting centralized exchanges.
For smooth operation, our team recommends connecting the MetaMask wallet to the network.
What is OP Token?
OP Token is the native governance token by the Optimism network. The token was officially launched on May 31, 2022, in an airdrop fashion. Since the core purpose of the token revolves around governance, it gives the token holders Rights to vote on key proposals that can shape the direction of the project.
Token holders can vote and influence key decisions like software updates, technical integration, funding decisions etc. As a rule of thumb, the higher the number of tokens held by the user, the greater will be his voting power.
The total supply of OP token is capped at 4.29 billion
OP Token Airdrop:
On May 31st, Optimism announced OP token airdrop for the users who have interacted with the platform in the past, under certain conditions, listed below –
A total of 231,000 wallets were eligible to claim 5% of the supply which equates to 214 million tokens. You can check your eligibility and claim the tokens here.
Needless to say, it was one of the most turbulent airdrops, since the users who received the tokens earlier took no time to dump them in the market. The team has planned other rounds of airdrops. If you wish to be eligible for upcoming OP token airdrops, I suggest you interact with Optimism bridge.
Optimism Crypto Hack:
Optimism has all the reasons to be pessimist after announcing the loss of 20 million tokens valued at around $35 million. It seems the team failed to learn its lesson from the turbulent airdrop. It was all set to launch the OP token for the Optimism Collective DAO and sending 20 million tokens to its Ethereum wallet was part of the process.
However, they failed to send the tokens to the correct address resulting in the loss of tokens. Though the tokens managed by Wintermute (launch partner) assured that the tokens will not be stolen but an anonymous thief stole all the tokens and sold 1 million already.
The Optimism address failed to sync with the Ethereum address, resulting in the loss of tokens
Optimism is one of the well-funded layer 2 blockchains. When it comes to cash reserve, it is rubbing shoulders with Arbitrum, Polygon & Immutable X chains. It has closed $150 million series B funding round in March 2022, valuing the startup at $1.65 billion.
OP Token Price:
Check the latest price of OP token –
Where to buy Optimism Crypto Tokens?
If you ask about my opinion, the project has done an incredible job raising investments. It is indeed financially stable and can thrive for a longer period of time without making big gains. However, on the execution front, the team has to do a lot of homework. It has to keep its head down and work like Harmony ONE, focusing on establishing SOPs and strong tech.
Frankly speaking, the airdrop was a failure & OP token theft has added insult to the injury. Competition is already brutal and such mistakes will not go unpunished. Until the project built a strong and supportive DAO, I will be neutral on the investment front. What about you? Are you optimistic about Optimism?
This completes my review of Optimism Crypto network. In the next post, I will talk about Indacoin & free airdrops. If you’re a fan of blockchain technology then do share this post on your social handles and educate everyone around you. Remember to subscribe to my YouTube channel for more informative content, released every week.
Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.
Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.