Optimism: Paving the way for a future “optimism” for Ethereum

Everyone has heard of Ethereum 2.0 and how it solves Ethereum's scalability problem.What if we say that Ethereum is already evolving with or without Ethereum 2.0?Ethereum's transition from proof-of-concept (PoW) consensus models to proof-of-concept (PoS) consensus models is just the tip of the iceberg. Ultimately, the game moves from monolithic blockchains to modular blockchains, creating a new framework for blockchain scalability. It is Ethereum's answer to the blockchain trilemma with the goal of increasing accessibility while managing distribution and security.The blockchain trilemma is the idea that blockchain must balance our three principles (decentralization, speed, security) and is unlikely to improve without sacrificing others.

A monolithic blockchain is a great way to describe a blockchain where all counting and execution is done on a single chain.Most L1 (Layer 1) designs today follow this pattern and are monolithic blockchains. On the other hand, a modular blockchain divides the chain into layers, a security layer and a data layer. Each chain has a unique role and is designed by other chains to make the most of the lower blockchain. In the case of Ethereum, Ethereum L1 is the available security and data layer, and Layer 2 (L2), which is built on top, acts as a layer.

The compactness of the structural design is better than the monolithic blockchain at all levels. The goal is to allow the L2 to do everything the monolithic L1 can do and integrate with other L2s.expectationsThis is just an example of the Ethereum L2 target doing just that.

Above: Monolithic blockchain network (left) and Ethereum's modular architecture

What is Optimism?

Optimism was the first Ethereum L2 to develop the best possible solution compatible with the Ethereum Virtual Machine (EVM).Optimism is equivalent to Ethereum and can handle large businesses while securing Ethereum..

The bullish rollup gets its name from the market. By default, change is well thought of as real and innumerable. It relies on fraud prevention to ensure business integrity. The validator (anyone running the "all-node" Optimism) can predict the usability of an application process submitted by the sequencer.The rollup then identifies it by running an account on Ethereum. Commercial apps can compete during the contest with a one-week wait before final submission to the Ethereum mainnet.

If the consensus turns out to be fraudulent, the consumer may be charged and the sequencer fined. Rewards are mined from a pool of ERC-20 tokens to which the sequencer must be linked. For reliability reasons, the required token is ETH. This creates an incentive that encourages consumers to catch the bad guys and encourages competitors to just deliver legitimate products. Misconceptions will be eliminated and the facts will be recognized. The exchange itself is not reversible and only the fraudulent benefits of the exchange are eliminated.

A Brief Overview of How Fraudulent Evidence Works

Source: https://ethereum.org/ Optimistic information on stacking fraud prevention

Besides its effectiveness, what is interesting about Optimism is that the organization behind it is a non-profit organization whose purpose is to promote non-profit activities. Since the project was not yet fully integrated, the team used all the benefits of the central work to measure and manage the public resources developed by Ethereum. The team will provide $1 million for these projects in 2021.

What are the benefits of optimism?

Optimism has four main benefits:Equivalent to standard measurement function,data security,quickandthe price.

Optimism is one of the more common EVM-enabled strings and aims to go further and become more equivalent to EVM. Optimism can support any Ethereum application using Optimistic Virtual Machine (OVM), EVM-enabled virtual machine. Developers can use Ethereum-based dApps for good with little to no home modification. This allows integrity applications (dApps) developed by Ethereum to work well in a virtual environment.

Unlike sidechains like Ronin (using Axie infinity), which have their own security when running on their own, rollups like Optimism get their security from the Ethereum mainnet. Marketing was successful in Optimism, but business records were closed and stored in Ethereum. This allows Optimism to gain the security of Ethereum while maintaining its robustness.

Computing is the slow and expensive way to use Ethereum. By excluding default enterprises, Performance can achieve scalability improvements of 10 to 100 times depending on the nature of the enterprise. Optimism offers a near-established trading approach, allowing users to see trading results almost immediately. Trading expectations is cheap within the cost of trading Ethereum. Currently, the Optimism return rate is $1.66 and the Ethereum return rate is $8.77 (see Real Costs). The Optimism team estimates total fuel savings of over $335 million from the successful completion of the network.

Fuel costs paid by Ethereum vs. expectations

Source: Nansen.ai, January 17, 2022

Are there downsides to optimism?

Optimism has three major problems: long and profitable suppression, the ability to promote discrepancies between network partners, and transactions under L1 censorship.

Due to the current one-week delay for proof of fraud,The waiting time for the removal of the happiest bridge is one week. Main bridge disconnects cannot be undone when sending, so this is an important thing to keep in mind when using the network. Removing the main bridge is expensive and can cost $100 or more due to security measures applied to the bridge. This long and costly closing time can be detrimental to adoption and intermarriages. To solve this problem, other outsiders such as Hop Exchange have emerged. These bridges allow for quick removal and are generally less expensive than larger bridges. Optimism works to reduce the cost of removal, but it still takes months to make the necessary updates.

The network relies on a motivated staff to fight against fraudulent recommendations and on procedures for submitting recommendations. When there are few or no scams, validators receive little or no reward from worker nodes because they are only rewarded for performing competitive scams. This prevents validators from running nodes. Without validators, the sequencer will arbitrarily send fraudulent transactions, causing network errors. But that is unlikely to happen. In addition to the potential network benefits that can be earned, users are encouraged to follow loyal customers.Applications built on top of Optimism (e.g. the third bridge, DeFi protocol) are encouraged to be honest validators to maintain the functionality of the process.

If there is enough value in an exchange, Sequencer can bribe Ethereum staff mines so the scam can pass at very low cost upon inspection. This destroys trust in the network and makes it incompetent. Since miners are encouraged to match the Ethereum network, such attacks will not occur. When this attack occurs, it will negatively affect the value of the Ethereum network itself. Miners will reduce the long-term cost of becoming an Ethereum miner for a one-time gift. Sequencers and fair validators will bribe miners with higher payouts because the total cost involved may be more than the total cost of a transaction.

How does optimism compare to Arbitrum?

Optimism was the first solution to develop an EVM-enabled Optimistic Rollup protocol, but the mainnet lag delays the Arbitrum advantage.For example, Uniswap was to be released for the first time in the deal, but due to delays, the Uniswap community requested integration of Uniswap into Arbitrum pending the release of Optimism.

Optimism and Arbitrum are both optimistic rollups, so they are similar in many ways.Their main difference is their justification against fraud. Optimism selects non-negotiable evidence of deception, repeats all changes and does the necessary accounts in the L1 to see the facts. Arbitrum, on the other hand, opted for interactive proofs of deception which only used certain inconsistencies in L1. Conflicts are identified and broken down until the exact steps that lead to the discrepancies occur. The analysis is performed by sequencers and validators, and only a few steps to reduce the inconsistency are calculated in L1 to determine the correct state.

The advantage of proof of concept is that it is easier to design and does not require participants to engage with each other. Thus, proof of deception is instantaneous.Interactive Fraud Proofs wants two or more parties to work together to spend more time identifying and resolving issues. The downside is that counting all changes in L1 costs more than just one step. There is also a block size and operation limit (based on L1) that can be effectively identified in a non-negotiable conversation, where negotiation is not valid because it only requires identification in one stage.

Optimism is currently working on its overall vision for the transition to the interactive protection model equivalent to EVM.The difference between the equivalent EVM and the EVM over is that the former is controlled by the EVM and the latter is controlled by a virtual machine.An example is the Arbitrum Virtual Machine (AVM) that currently runs on Arbitrum. The Arbitrum group is also working on EVM equivalents. It is true that the two professions are pushing the limits of the expectation of quality, continuity and mutual learning.

As for the special address in the last 30 days, happiness is 45.2k and arbitrage is slightly higher at 66.8k. Optimism and Abitrum handle around 2-3% of the total Ethereum market, or 21,000 and 34,000 market shares. It's only been a few months since the release of the public mainnet of both chains, and over time we'll see more dApps and users joining both chains.

Bullish Daily Business:

Source: Nansen.ai, January 17, 2022

Arbitrum Daily Market:

Source: Nansen.ai, January 17, 2022

How to manage hope?

Large Ethereum-based dApps such as Uniswap and Synthetix have already been deployed and run on the blockchain.The growth chain has always existed in which DeFi projects such as Rubicon Finance and the NFT Quixotic industry started and are ongoing. Several NFT products appeared in Optimism, and the top three were OptiPunk (spinoff of CryptoPunks), Optimistic Bunnies, and OldEnglish. The most popular dApp is DeFi dApp, with 4 of the top 10 apps being DeFi apps. The number of logs that display is the number of times the organization's smart contract has completed.

dApps log status for Optimism.

Source: Nansen.ai, January 17, 2022

As with Ethereum, you need an Ethereum wallet like MetaMask to connect multiple platforms and dApps.To use the ERC-20 tools, you must first link them to the Optimism channel. You can do this by optimizing your own decks or other decks.A third deck is sufficient for most purchases and is the preferred choice. When using the personal Optimism deck, it is usually less expensive and has the advantage of being able to withdraw immediately compared to a week of waiting.

What is the future of hope?

Optimism does not have a token and does not intend to announce the time anytime soon, but it deserves attention.The mid-term exchange has direct access to Good, similar to exchanges such as Binance and Huobi made for Arbitrum. This allows users to skip the connection process and streamline their resources directly towards quality, thereby reducing the costs associated with a connection.

The team will gradually decentralize the network, and this will begin to happen as major network adjustments and improvements begin. Currently, the team is intercepting evidence of fraud as it develops new models and improves anti-fraud interactions.

The ecosystem is growing day by day with management agreements that will trickle down the chain for large DeFi apps like Aave. Ethereum-based dApps can be easily used through Optimism, removing dApps access restrictions natively. We are seeing a wave of dApps being sent to the chain and it was only a matter of time before the energy ecosystem was created. Given the low cost of optimism, we may see more DeFi, NFT, and GameFi performance on the blockchain over time.

Smart money and optimism:

Source: Nansen.ai, January 17, 2022

Smart money doesn't seem to have explored the whole chain, with smart NFT miners mostly overlapping with Ethereum at 8.6%. This shows that hope is still in its infancy and that the ecosystem still has plenty of potential and room to grow and thrive.

Currently, L2 solutions are discrete and available in silos. Collaboration is an important thing that needs to be said to make Ethereum truly scalable. Optimism will work to accomplish this once a major overhaul and the channel will be more decentralized.

The release of Ethereum 2.0 will improve the capabilities of Optimism.Having Ethereum L1, which is faster and more efficient, means everything built on it works better. Ethereum 2.0 alone will not be enough to meet the growing demand for blockchain, and L2 must be able to meet this demand.

Therefore

L2 solutions will continue to exist and most changes will occur on Ethereum.L2 has been criticized for creating additional difficulties for users, as users have to take additional steps to acquire both on-chain and off-chain assets.These bugs are recognized by the current situation, but will be resolved in a timely manner in third-party applications or the L2 group itself, which simplifies the process. ETH 2.0 does not pass them, it only makes them bigger and more functional.

Optimism is L2 which will play a key role in the development of Ethereum in the future. They have set high standards in striving for EVM equivalency and continue to deliver even the slowest boot version.Ease of deployment to Optimism will be key for most existing dApps to provide a platform for Optimism, and as the ecosystem is designed, lower fuel costs will boost consumer productivity across the chain. In addition to software development, we provide funding to support and grow high-impact projects in the Ethereum ecosystem.

We are at the start of a blockchain-based world, and the Ethereum model could be the key to unlocking a whole new world of potential. We generally agree with the idea of ​​the multi-string future, but perhaps the clearest explanation is more layered.