What is Optimism (OP)?

Optimism (OP) is a layer-two blockchain built on top of Ethereum, designed to enhance scalability and reduce transaction costs for users of the Ethereum ecosystem. Utilizing a technology called optimistic rollups, Optimism bundles multiple transactions together, records them on its own blockchain, and ultimately secures them on the Ethereum mainnet. This mechanism allows Optimism to benefit from Ethereum's security while simultaneously providing a faster and more cost-effective experience.

Optimism is one of the largest scaling solutions for Ethereum, currently supporting over $500 million in Total Value Locked (TVL) and home to nearly 100 protocols. Some of the most notable applications using Optimism include Synthetix (a derivatives exchange), Uniswap (a decentralized exchange), and Velodrome (an automated market maker). Optimism aims to be a public good, similar to Ethereum itself, providing scalable infrastructure to the blockchain community. Users can easily get started by adding the Optimism chain to their Metamask wallet and bridging tokens like ETH to access this layer-two network. On May 31, 2022, Optimism held a highly anticipated airdrop of its native $OP token, drawing significant attention to the ecosystem.

How Does Optimism Work?

Optimism uses optimistic rollups as its core technology to enhance the performance of Ethereum. Optimistic rollups work by bundling multiple transactions into a single batch, which is then submitted to the Ethereum mainnet for validation. Unlike traditional transactions, these rollups are "optimistic" because they assume all transactions are valid by default. This approach allows for higher throughput and reduced transaction fees.

Transactions on Optimism are recorded on its own Layer 2 blockchain and then consolidated on the Ethereum Layer 1. User transactions are batched and submitted without direct proof of validity, although they can be challenged within a seven-day period to ensure accuracy. This mechanism ensures that the Ethereum mainnet still acts as the ultimate source of truth, maintaining security while providing an enhanced user experience on Optimism. Additionally, Optimism’s approach ensures that the platform remains decentralized, scalable, and closely aligned with the Ethereum Virtual Machine (EVM), making it easier for developers to build and deploy applications.

Optimism is designed around four core tenets: simplicity, pragmatism, sustainability, and optimism. It leverages existing Ethereum infrastructure as much as possible to maintain simplicity, focusing on incremental improvements to achieve scalability without compromising security or decentralization. This means Optimism uses the same proven code as Ethereum, iterating on its technology based on real-world needs, which helps the platform grow sustainably and effectively.

Optimism's Founding Team

Optimism was founded by the Optimism Foundation, a nonprofit organization committed to building decentralized infrastructure that contributes to the public good. The Foundation aims to drive the growth of Optimism as a scalable solution for the Ethereum ecosystem, while also ensuring that the technology remains non-profit-oriented and accessible to everyone.

Key figures behind Optimism include Kevin Ho, Karl Floersch, Jinglan Wang, and Benjamin Jones. Together, they have focused on turning Optimism into a viable scaling solution that complements Ethereum’s goals. Originally formed as Plasma Group in 2019, the team began researching Ethereum scalability before rebranding as the Optimism Public Benefit Corporation (Optimism PBC) in 2020. The nonprofit nature of the project emphasizes the team’s commitment to creating infrastructure that prioritizes the needs of the community and public goods over profit.

The Optimism Foundation's governance structure includes a Board of Directors, featuring Abbey Titcomb, Ben Jones, Brian Avello, Eva Beylin, and Jing. This board helps guide the organization, ensuring that Optimism's mission remains focused on being a sustainable, decentralized solution for scaling Ethereum, driving down costs, and making blockchain technology accessible for everyone.

$OP Tokenomics

$OP operates on the Ethereum blockchain, following the ERC-20 token standard. The governance features are facilitated through the Optimism Collective, a decentralized autonomous organization (DAO) consisting of the Token House and the Citizens' House.

The total supply of Optimism  is currently capped at 4.29 billion tokens, with allocations as follows:
•    Ecosystem Fund 25%
•    Retroactive Public Goods Funding (RetroPGF) 20%
•    User airdrops 19%
•    Core Contributors 19%
•    Sugar Xaddies 17%

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