$BTC $SOL $BNB #btc70k Understanding Optimism
Before diving into the OP token, it’s important to understand the concept of Layer-2 scaling and how Optimism fits into the Ethereum ecosystem. Layer-2 scaling solutions are designed to alleviate the congestion on the Ethereum network by processing transactions off-chain and periodically posting them on the main Ethereum blockchain (Layer-1).
Optimism utilises a specific type of Layer-2 solution, called optimistic rollups, which bundle multiple transactions together into a single batch, reducing the number of transactions to be processed on the Ethereum network. Furthermore, optimistic rollups assume that transactions are valid (hence ‘optimism’), which speeds up processing by omitting unnecessary work (although, users can dispute the validity of a transaction batch by submitting a fraud proof). By compressing transaction data and submitting it to the Ethereum mainnet periodically, Optimism significantly reduces transaction fees and increases transaction throughput.
