Optimism (OP) is one of the leading Ethereum (ETH) Layer-2 scalability solutions. Layer-2 refers to a secondary protocol built on top of an existing blockchain. A Layer-2 solution created on Ethereum, such as Optimism, aims to offer faster transaction speeds and scalability while benefiting from the security of the ETH mainchain.
As it is known, as the number of users and transactions on the Ethereum network increases, scalability problems begin to emerge. Accordingly, while transaction fees on the network have increased, transaction times have also extended. This has caused significant difficulties, especially in the development of decentralized finance (DeFi) projects. Accordingly, many Ethereum scalability projects have been developed. Optimism and its native cryptocurrency OP token are among them.
OP Token Project
Optimism is a Layer-2 protocol designed to support all decentralized applications on the Ethereum blockchain. Optimism moves all the computation required to validate transactions off-chain. Thus, it increases transaction speed and reduces costs. On the other hand, it benefits from the security benefits of the mainnet by storing transactions on the Ethereum blockchain. Today there are many decentralized exchanges and other decentralized applications using the Optimism project.
The Optimism protocol is supported by the OP token created in the ERC-20 standard. OP token is the governance and utility token of the Optimism protocol. Management of the Optimism protocol occurs through a decentralized body called the Optimism Collective. Optimism Collective, in which OP token holders have the right to participate, consists of two separate layers named Token House and Citizens' House. The Citizens' House governs funding decisions; Token House, on the other hand, deals with technical decisions such as software upgrades. In other words, the OP token gives its holders a say in Optimism's financing and technical decisions. Transaction fees in the Optimism protocol are also paid with OP tokens. $OP
