The decentralized finance sector is one important sector in the crypto industry. This is because traders can carry out a wide variety of activities in this sector. Ranging from lending to borrowing and yield farming, traders are open to various options to earn rewards. The main platform of DeFi, Etherum, has seen a vast increase in protocol and users across the years.
With this, the network has been overly stretched transactions on it takes time before they are processed. Asides from that, users have to pay exorbitant fees to complete their transactions on the network. This is why some Layer 2 scaling such as Arbitrum and Optimism have taken that burden off Ethereum. In this article, we will be looking at Optimism and moving the crypto sector forward.
What is Optimism Crypto?
Optimism is a layer 2 scaling solution that is used on Ethereum. The main feature of Optimism is to make transactions on Ethereum applications very cheap. Optimism moves transactions away from the blockchain to another blockchain. With this, gas fees are drastically reduced, and throughput increases. Optimism provides Ethereum developers with the opportunity to use all available tools on Ethereum without the need for changes. According to the Optimism developing team, traders will pay a 10x reduced cost as gas fees. To tackle fraud and invalid state transition, Optimism makes use of Optimistic rollups.
How Optimism bridges to Ethereum
Optimism allows fast Layer 1 to Layer 2 transfers from Ethereum mainnet to Optimism. However, all transfers from Optimism to Ethereum take up to 7 days. This is because it uses the waiting period to verify transactions against fraud. To bridge between Optimism and Ethereum, users can use the Optimism Gateway. To bridge between both chains, a user needs to enter the gateway and connect his wallet. The next step requires you to choose your type of wallet and make your deposit.
Once the contract acknowledges the tokens that you sent in, your tokens will be bridged over. The bridging process is swift, and it takes about 5 minutes from start to finish. After the tokens are bridged on Optimism, users can make transactions just like they do on Ethereum. Also, Optimism has the same security and resistance that the Ethereum mainnet has. Optimism supports wallets such as Coinbase, Metamask, Rainbow, and Token, among others.
Is Optimism good for the future?
Optimism is a chain for the future due to the so many advantages that abound on the network. All these advantages and other features are why Optimism will help Ethereum achieve more scalability. Optimism will provide users with a faster transaction with cheap fees while providing Ethereum’s security. Also, it is noteworthy that the data-infused determines the performance of Optimism on Layer 1. This means that users can compress as much data as possible and have a large and cheap data layer. Optimism is also hoping that it can seduce more apps onto its chain due to its features. With that, more users will be on the blockchain.
All You Need To Know About Optimism Crypto