Optimism uses optimistic rollup technology, which enables large volumes of transaction data to be “rolled up” into one batch of data on Ethereum, so that there is only one transaction fee to be charged. Optimism is one such Layer 2 (L2) chain, which means that it operates on top of the Ethereum blockchain (a Layer 1 chain), to help ease congestion and in turn reduce transaction costs and processing times. Instead of directly competing with it as a different Layer 1 blockchain, as the above-named Ethereum killers are doing, Layer 2 solutions seek to complement the Ethereum ecosystem, by providing a “flyover” of sorts, taking the load off the main Ethereum net and thus alleviating congestion. In response to this, other blockchains termed “ Ethereum killers” such as Avalanche, Solanaand Fantomhave risen to the challenge.Īt the same time, some developers are taking a different approach to Ethereum’s limitations. Optimism is currently the second largest Layer 2 chain in terms of total value locked, behind Arbitrum.Īnyone who has spent any time in crypto will be familiar with Ethereum’s scalability problem–a lack of capability to process a high volume of transactions fast enough, resulting in high gas fees and slow processing times.

The Optimism project is governed by a non-profit, the Optimism Foundation, which has pledged to work toward the development of infrastructure that “promotes the growth and sustainability of public goods.”.

Optimism is a Layer 2 scaling chain that operates on top of the Ethereum blockchain to reduce congestion, transaction fees and processing time.

What Is Optimism Crypto: A Layer 2 Chain Working Toward the Common Good

Crypto optimism