Introduction of Optimism

Optimism is a layer 2 blockchain, meaning it runs on top of the Ethereum mainnet (layer 1). Transactions take place in Optimism, but transaction data is published on the mainnet where it is verified. It’s like driving on the side of the road without paying attention to the safety of the highway. Hope is Ethereum’s second layer 2 with a total of $313 million locked in its smart contracts,

As of today, according to Defi Llama. Arbitrum took the top spot with $1.32 billion. Synthetix, a series of water production contracts, is the most optimistic model, with a locked-in value (TVL) of $125 million. Uniswap, an exchange (DEX), is the second most popular protocol on the chain. As of this writing, there are 35 protocols on Optimism with at least $1,000 locked in their smart contracts.

Working Principle of Optimism

Optimism is a great list of supplemental businesses only. All its blocks are stored in the Ethereum smart contract called the Canonical Transaction Chain. Optimism is a great list of supplemental businesses only. All its blocks are stored in the Ethereum smart contract called the Canonical Transaction Chain.

Unless a user submits his transaction directly to the canonical transaction chain, a sequencer creates a new block. This immediately follows validating transactions, and creates and destroys blocks in layer 2 of Optimism, the blockchain that sits on top of the L1 blockchain, in this case Ethereum. These blocks are “rollups”, batches of Ethereum transactions.

The system operator aggregates this data to reduce the transaction size (and thus save money), and transfers the transaction data to Ethereum. Optimism’s Layer 2 software is designed to mimic the Ethereum code as closely as possible. It uses, for example, the same virtual machine as Ethereum and transfers gas in the same way (albeit in a smaller way, thanks to its reciprocity).

Because Ethereum and Optimism are similar under the hood, you can send any ERC-20 asset – a cryptocurrency that corresponds to the Ethereum Generic Token Standard – between the two networks.

How to use Optimism?

For users, Optimism is like the core of the Ethereum network. Your virtual address is the same Ethereum mainnet address, which starts with 0x. Optimism’s blockchain explorer is similar to Etherscan, an Ethereum mainnet blockchain explorer. Hope supports several DeFi (DeFi) wallets, including MetaMask, the most popular option.

While you can manually configure your wallet for Optimism, there is an easier way: just go to a DeFi app like SushiSwap (SUSHI) and list Optimism as your network (top right corner in the case of Sushi). Your website selection will force your MetaMask to add a network and switch to it.
And, of course, like the Ethereum mainnet, Optimism needs ether (ETH) to cover the gas bill. So, to start using Optimism, you will need to send your ETH to MetaMask from another chain, like Ethereum mainnet or another Layer 2s like Avalanche.

To send money through another channel, you can use any bridge that supports Optimism. You can also use a centralized cryptocurrency exchange designed to support your Bitcoin address in ETH. But before you try to send money to Layer 2 through your central exchange, make sure that it can support the termination of the channel. If you send money to an address that is not approved by your exchange, your money may be irretrievably lost. As of this writing, Binance, Bybit, and Huobi are offering to withdraw from optimism.