Introduction to Optimism
Optimism is a layer 2 scaling solution built on the Ethereum network, designed to improve the scalability and efficiency of Ethereum. It utilizes “optimistic rollups,” a technique that allows transactions to be executed faster and more affordably than on the Ethereum layer 1 itself. The main goal of Optimism is to reduce the high transaction fees and slow transaction times that sometimes occur on Ethereum, while maintaining security and decentralization.
How does Optimism work?
Optimism utilizes optimistic rollups, a method where transactions are first conducted outside the Ethereum blockchain (off-chain) and then merged in batches and returned to the Ethereum blockchain (on-chain). The innovative aspect of this technique is that transactions are considered “optimistic,” meaning they are accepted as valid until proven otherwise. This reduces the need for costly and time-consuming verification of each transaction, leading to a significant increase in processing capacity and a decrease in transaction costs.