A little more Optimism always makes life more bearable. Well, Optimism brings more of that to the Ethereum blockchain. BC.GAME has listed Optimism Token (OP) as one of the tokens gamers can use to wager on the platform.
Ethereum’s launch was a watershed moment for blockchain innovation. It proved that the blockchain was much more than a simple transaction ledger and could serve as the backbone of a trustless digital enterprise. A few years later, the blockchain began showing scalability limitations. The Ethereum core development team has tried to mitigate the issues, but there is still room for improvement, especially given that the Ethereum blockchain is the favorite launchpad for new tokens.
Some of these tokenized platforms require fast settlement to make business sense. This is where solutions like Optimism come in. Let’s find out what Optimism is all about:
What is Optimism (OP)?
The Optimism blockchain launched as a scaling solution for the Ethereum blockchain to lower transaction fees and improve throughput. Optimism launched in June 2019 as Ethereum’s scalability challenges became more apparent, and a few other Layer 2 (L2) solutions were launched to improve the situation.
The name Layer 2 is because the Ethereum blockchain is Layer 1. Accordingly, an L2 solution provides an extra layer to process some transactions off the Ethereum blockchain. The cumulative effect is the reduction of load on Layer 1, meaning faster processing at lower costs.
Ethereum and Bitcoin’s scalability problems have provided an opening for Layer 2 solutions. The Ethereum community has migrated from proof of work consensus to proof of stake to try and mitigate some of these issues. However, there is still a need for scalability solutions, given Ethereum’s role as a foundational enterprise blockchain. Therefore, Optimism will continue to be relevant for the foreseeable future.
To achieve its scalability enhancement, Optimism utilizes Optimistic Rollups technology. This technique significantly speeds up transaction speeds while also reducing fees. Rollups achieve this effect by keeping code simple and user-friendly for developers.
The rollup involves moving computation off-chain. This way, the solution executes transactions off the chain, but the post-transaction data is still on the Ethereum mainnet. The term roll ups comes up because the L2 operators bundle several off-chain transactions in batches before submitting them to Ethereum. Besides, the compression of transaction data posted on the mainnet ensures that its load-reducing effect is actualized.
The optimistic part of its name arises because this solution provides an opportunity for anyone to challenge the results of a rollup transaction. This approach contrasts the zero-knowledge proof mechanism that, by default, provides proof of validity for transactions.
Advantages of Optimism
- Improvement of transaction speeds -Ultimately, a Layer 2 solution is only as useful as its ability to improve transaction speeds and lower gas fees. Optimism is able to achieve 90 times faster transactions than Ethereum.
- Scalability for Dapps- Decentralized applications using the Ethereum standard can easily migrate to Optimism and benefit from its scalability.
- Layer 1 integrity – All records of the transactions will still be posted on the Ethereum blockchain. The essence of blockchain technology is to ensure that every network participant can view the record of transactions, and Optimism retains this even though it does off-chain computation.
- Easier programmability – Transactions on Optimism are assumed to be valid unless proof of fraud is shown. Therefore, they have easier programmability than Zero-knowledge proof solutions.
Governance and the Optimism Foundation
Optimism launched in 2019, and its mainnet went live in 2021. Its creators were part of Ethereum development and intended to improve the main network. The native token, OP, allows the funding of third-party development proposals on Optimism. Notably, the Optimism Collection Decentralized Autonomous Organisation is responsible for the governance of this platform.
The DAO ensures that Optimism retains decentralized ideals in governance. Besides, improvement proposals get voted on before implementation. The DAO and Optimism Foundation will look to propel this solution and prove its efficiency over other L2 solutions.
The Optimism Foundation provides general stewardship for the collective. This Foundation will eventually step back as the collective takes more control in a mature blockchain ecosystem. From the inception of the blockchain, a fundamental concept of such projects was community governance. The Foundation will ultimately let the collective take complete control to achieve these ends.
Co-founders Jinglan Wang and Ben Jones lead the Foundation with the assistance of a team of tech and management exports to go along. The project has several crowdfunding rounds, with more funds raised each year between 2020 and 2022. At press time, OP traded for approximately $2.24, with the project having a market capitalization of about $700 million.
Wager on BC.GAME using OP
Layer-2 (L2) solutions vary significantly in style and scope of operation. Some, like Polygon, started as L2 solutions but have now transitioned into prominent standalone projects with interoperability with Ethereum. Optimism operates primarily as an L2 solution, but the future may unfold more ambition and range from the Optimism Foundation.
OP tokens are readily tradable on multiple platforms with decent liquidity. Depositing this token on BC.GAME is simple, and with it, you get to explore a whole array of online casino games—these range from online slot games, live dealer games, sports betting, and much more. Wagering using crypto is easy, and OP is another listed token option for users.
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