Optimism Ecosystem - Everything You Need To Know About Op Token

Ethereum network users now no longer have to worry about congestion problems or high transaction fees when they can use Layer 2. Layer 2 is divided into many types, namely the Optimistic Rollup solution consisting of 2 projects. Project Abritrum Ecosystem and Optimism Ecosystem. Currently, Optimism Ecosystem is the project that has launched the OP token. Let's find out what this token will mean for the Optimism cosystem.

What is Optimism?

Optimism Ecosystem (OP) is a layer two protocol and smart contract platform that aims to enable low-cost and near-instantaneous Ethereum transactions. The OP cryptocurrency powers the Token House, which will be a division of the Optimism Collective alongside the Citizens' House.

What is Optimistic Rollup?

An optimistic rollup is an approach to scaling Ethereum that involves moving computation and state storage off-chain. Optimistic rollups execute transactions outside Ethereum but post transaction data to Mainnet as call data.

Simply put, your transaction will be considered valid and approved if it cannot be proven fraudulent.

Optimism is a Layer 2 consisting of 3 main components:

Ethereum mainnet: Optimsm's Layer 1 native security platform.
Optimistic Rollup: The core of Optimism's scalability.
Optimistic Virtual Machine (OVM): A virtual machine compatible with Ethereum, helping projects operate as if they were on Layer 1 Ethereum. This is the environment to run Ethereum's smart contacts, so OVM can be considered as an EVM with much better scalability, helping to handle a number of smart contacts at the same time.

How does Optimism Works?

Bridging assets between layers

Optimism was created with the purpose for users to be able to move smart contacts between Ethereum and Optimism. This helps move assets, including ERC-20 tokens, between the two networks. The exact mechanism by which this communication occurs depends on the direction in which messages are being sent. Optimism uses the same functionality on bridges that allow users to deposit and withdraw assets via the Ethereum and Optimism networks.

Moving from Ethereum to Optimism

To send messages from Ethereum to Optimism, users need to enable CTC(CanonicalTransaction-Chain) contact on Ethereum to be able to create a new block on Optimism block. You can see this section on the production block for additional context. The block creator may include transactions that will appear from the address that generated this block.

Moving from Optimism to Ethereum

Contracts on Optimism will not be as easy to create transactions on Ethereum as Ethereum contacts can be created on Optimism. The process of transferring data from Optimism back to Ethereum is a bit more complicated. Instead of creating authentic transactions, we must instead be able to make provable statements about the state of Optimism to contracts sitting on Ethereum.

Making provable statements about the state of Optimism call for a cryptographic commitment (opens new window)in the form of the root of the Optimism's state trie (opens new window). Optimism's state is updated after each block, so this commitment will also change after every block. Commitments are regularly published (approximately once or twice per hour) to a smart contract on Ethereum called the StateCommitmentChain

Users can commit to creating Merkle tree proofs of states on Optimism. These proofs will be confirmed by smart contracts on Ethereum. Optimism will maintain convenience for cross-chain contracts, the L1CrossDomainMessenger.

These proofs can be used to make decisions about data along with the storage of any contact on Optimism at a particular block. This basic functionality will be used to make it possible to transfer contract information from Optimism to the Ethereum network. The L2toL1MessagePasser contact can be used by contracts on Optimism to store data on top of Optimism. Users can prove contracts on Ethereum after contracts on Optimism have been executed.

Highlights of Optimism Ecosystem

The Optimism blockchain has notable features including Transaction Experience: With fast processing speed, gas fees are being reduced by more than 80 times compared to gas on Ethereum currently.

Advantages for scaling, scaling, and deploying Dapps: Fully supporting EVN, Ethereum Dapps or Dapps in other EVM-compatible ecosystems can run on layer 2.
Security: Because it is built on Ethereum, Optimism inherits a strict level of security.

In addition, Optimism is being invested by many famous names such as a16z or Paradigm. It is known that in the Series B funding round, Op raised $ 150 million and was valued at $ 1.65 billion.

Currently, information about the use cases of OP token is not much, OP token is mainly used with administrative applications such as:

Vote for protocol updates
Vote for the distribution of incentives for projects part of the Governance Fund Project funding on Optimism
Participate in project management with OP Citizens.

Overview of Optimism Ecosystem

Currently, the market is in bear season so the filling line has not returned to Defi but OP's TVL is currently at nearly $900 million. Although TVL is on the sideway, Optimism Ecosystem still has 64 Dapps running on full including Defi, NFT, Dao, Bridge, and Wallet.

Optimism Ecosystem Defi Projects

Lyra: Automated market maker(AMM) for options trading

Thales: Allows the creation of peer-to-peer parimutuel markets that anyone can join. The Foundation of novel on-chain initiatives, from AMM-based positional markets to immersive gamified experiences.

Clipper: Decentralized exchange(DEX) built to give the self-made crypto trader to the best possible prices on small trades

Kwenta: Allows you to trade real-world assets and derivatives on-chain.

Optimism Ecosystem NFT Projects

Quix: Discover, collect, and sell digital items on the first NFT marketplace built for Optimism.

OptiPunks: Punks on Optimism. All Profit will go to public goods on Optimism.

Apetimism: A community-driven PFP NFT on Optimism.

Backed: NFT Lending, View existing loán, lend against NFTs, or propose loan terms on your own NFTs.

Optimism Ecosystem Bridge Projects

Hop Exchange: Allows you to quickly bridge assets between L1 and various L2 solutions.

Synapse Protocol: Allows you to transfer and swap assets across Ethereum, Layer 2 chains, BSC, Avalance, and more.

Optimism Bridge: This allows you to transfer assets between L1 and Optimism.

Optimism Ecosystem Wallet Projects

Coin98: Non-custodial, multi-chain wallet and Web3 gateway.

Metamask: A crypto wallet & gateway to blockchain apps.

Trust Wallet: Buy, store, collect NFTs, exchange & earn crypto.

Optimism Ecosystem Dao Projects

Bakery Dao: Provides exclusive Defi research with Web3. Pastríe is dynamic NFTs, letting users contribute, level up, and get rewarded for their info.

Olympus Dao: The decentralized reserve currency of Defi.

CircusDao: A decentralized circus built and run optimistically by clowns.

Conclusion

Layer 2 benefits when there will be many new users. Optimism will not pass up this opportunity and will launch many programs and support new users and Dapps in their ecosystem. Be active on Optimism, maybe you have a chance to win OP's 2nd Airdrop.

Optimism Ecosystem FAQ

Is Optimism Ecosystem really secure?

Optimism puts a lot of Data on Layer 1, the longer withdrawal time makes it extremely expensive to attack 51% of the Optimism network.

Any chance to earn retroactive on Optimism ecosystem?

Actually there is still a chance to get retroactive on Optimism. For example, anyone can be active on the Quix NFT marketplace built for Optimism.

Should I hold the token of Optimism at this time or not?

This is an interesting question. If you are a long-term holder then Optimism is a reasonable choice. And if you are looking to trade short-term Optimism, I think everyone should stop loss in case the market bears.

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