These days, the power and efficiency of the Ethereum network is not hidden from anyone. Indeed, this platform can introduce the concept of smart contracts and decentralized projects for the first time in the world, which is a huge revolution in itself. But one of the most well-known problems with this network is its low scalability. Optimism network and digital currency is a solution that has emerged to solve this problem. This platform can solve the problems of Ethereum in the best way and increase the speed of transaction confirmation while maintaining its security. On the other hand, this project can also minimize network usage. All these things together make the Optimistic Network and digital currency a very viable option for people. For more information on Optimism, stay tuned to the Digital Currency Signal editorial team.
Introduction to Digital Currency Optimism
The Optimism network is known as the best and certainly one of the most popular solutions for scaling Ethereum. In fact, the platform uses a special technology called roll-up. Based on this technology, transactions within Ethereum are compressed and transferred outside of it. It is then processed in this dedicated space and the result is briefly transferred to the Ethereum network. The Ethereum network also accepts the data obtained from this process and thus records it in its blocks. This mechanism significantly speeds up the transaction processing and data validation process in the Optimism network. In this way, according to reviews, it can increase this speed up to 120 times. In addition to these cases, the fees have also been significantly reduced.
For example, in a test conducted, fees for transactions made by the Optimism network were on average 50-100 times lower than the main fees of the Ethereum network. This alone is enough to attract a large number of Ethereum developers and enthusiasts to this second-layer solution. However, the development team is not satisfied with just that; Instead, it tried to add more features and benefits to its platform and thereby attract more users to it. However, a significant part of the users do not have detailed information on these topics and, therefore, do not understand the various aspects.
How does the coin of optimism work?
Optimism Funds uses an advanced data compression method called Optimistic Rollups. These are new ways to scale the Ethereum blockchain developed by the great team behind the Optimism Foundation. Meetings can be divided into two categories: Optimistic Money Groups, created by Optimistic Money Foundation and ZK, are often referred to as zero-knowledge groups. Rollups greatly speed up processing by moving large amounts of transaction data off-chain. Unlike other sidechains, Optimism clusters release a small amount of data to the decentralized Tier 1 network for verification and added security. Optimism Collections does not publish proof of the validity of batches of transactions sent on-chain; Because off-chain transactions are considered valid. This separates optimistic pools from zero-knowledge pools that provide cryptographic proof of validity for off-chain transactions.
Optimistic summaries rely on the use of evidence of fraud to prevent invalid transfers.
For this, Optimism Ethereum transaction should be implemented. Simply put, OVM or Optimism Virtual Machine is an environment that guarantees the execution of a specific smart contract between Layer 1 and Layer 2. OVM and EVM are similar in that they both perform calculations. However, OVM only acts as an interface to EVM.
What is a rollup?
In general, the components of Optimism include: a package, an array, and a mediator (fraud-proof contracts) and a virtual machine. Aggregations are Ethereum smart contracts that act as a transition between the main chain and layer 2 (where calculations are made). In other words, a transaction receives data, then sends it to layer 2 and returns the results of the calculations. Transactions sent to aggregator contracts at Layer 2 are received by the sequencer. They strive to do the right thing. The series receives rewards for this, but some assets must be locked up as collateral. In case of fraud, an alert is sent to the arbitrator’s smart contract. They verify the results of the sequence and the virtual machine. If the fraud is confirmed, the money deducted from the organizer will be handed over to the arbitrator.
What are the benefits of Optimism Currency?
- This provides great flexibility in general calculations (Turing-complete / EVM-compliant)
- It provides a significant increase in scalability without the need for a hard fork in Ethereum.
- All data is on the chain
- The currency of optimism is resistant to realignment and the attacks it causes.
For example, an Ethereum reorganization must be more than 50 blocks long to affect the network and must be reorganized. This ensures that the Optimism network will always maintain the same level of security as Ethereum.
Although its main disadvantages include the following:
- Low performance compared to other Layer2 solutions (Plasma, ZK Rollups).
- Some security issues
- It is very easy to implement some kind of censorship in an optimistic network; Although, it must be admitted, this is still the opposite of implementation.
Transferring assets from the Optimism network to Ethereum
To send messages from Ethereum to Optimism, users only need to activate the CTC contract on Ethereum to create a new block on the Optimism network. User-created blocks come from the address of the wallet that created the block.
Asset transfer from the Ethereum network to the Optimist network
The process of sending data from the Optimism network to the Ethereum network is more complicated than before, because smart contracts based on the Optimism network cannot easily make transactions on the Ethereum network otherwise. In this process, instead of automatically creating valid transactions, it is necessary to create a proven state of the Optimism network for contracts in Ethereum. A cryptographic compromise is needed to make meaningful statements about the state of the network. Optimism’s state is updated after each block is created, so the way its state is determined changes after each block. Commitments and network status to an Ethereum smart contract called StateCommitmentChain are published regularly (about once or twice an hour). Users can use these terms to generate Merkel tree proofs of optimal conditions
Optimism Network is a second-layer solution that was launched to solve the scalability problem of the Ethereum network. Optimism (OP) means optimism, which is also inspired by the same meaning in attitude. This network uses Optimum Aggregation to increase scalability. In this solution, the Optimism network collects and executes transactions on its network and sends them to the Ethereum network as a single transaction.