Optimism rollups address Ethereum's scalability by shifting execution to a separate layer. Transaction data is recorded on the main chain but executed in batches off-chain, boosting transaction speed and reducing gas fees. Understanding Optimism's workings is crucial for developers due to its significance as a Layer 2 solution. This article delves into why developers should opt for Optimism and how to build on it.
What is Optimism?
Optimism is a Layer-2 rollup blockchain aiming to scale Ethereum, launched in 2022. Unlike zk-rollup protocols, Optimism employs optimistic rollup technology, assuming transaction validity. This speeds up processing by not verifying each transaction individually. However, it allows a contestation period, typically a week, for potential fraud. Withdrawals may take about a week due to this system's design.
Why Developers Choose Optimism for Blockchain Development
EVM Equivalence
The Optimism rollup stack employs the Optimistic Virtual Machine (OVM) for smart contract execution, which is compatible with the Ethereum Virtual Machine (EVM). This compatibility allows developers familiar with EVM to seamlessly transition to OVM without learning new languages or frameworks. Optimism supports Solidity, Vyper, and Ethereum toolchains like Ethers and Hardhat. The OVM's full support for EVM opcodes enables smart contract execution on the Optimism rollup, ensuring interoperability between the two systems.
Scalability
Optimism addresses Ethereum's scalability issue by leveraging Layer 2 solutions. Through batching transactions, Optimism's rollup technology significantly boosts transaction throughput, potentially reaching 2,000 transactions per second (TPS) compared to Ethereum's 10-12 TPS. This scalability enhancement aims to reduce transaction delays and lower gas fees on the Ethereum network.
Lower Costs
Developing applications on Optimism offers end-users relief from Ethereum's high transaction costs. Optimism rollups split transaction fees into two parts - the L2 execution fee and the L1 security fee - effectively lowering the overall gas cost per transaction.
The L2 execution fee (or L2 Gas Fee) is the amount of gas utilized by a transaction when it is being processed on the Optimism network. This L2 execution cost can be calculated by multiplying the L2 gas price with the L2 gas used (i.e., Layer 2 Gas Fee = L2 Gas Price * L2 Gas Used).
Access to Liquidity Within the Optimism Ecosystem
Developers building apps on Optimism gain access to a vast pool of liquidity. Many major DeFi protocols, present on Ethereum's mainnet, also have versions on Optimism. This allows developers to seamlessly integrate these protocols into their apps, tapping into their liquidity to offer various financial services. With a TVL exceeding $3 billion on Optimism, developers can leverage DEXs, synthetics, lending platforms, derivatives, and other protocols with ample liquidity for their products.
Fraud Proof Mechanisms
The Optimism rollup employs Fraud Validity Proofs to verify data integrity. Transactions and activities are initially assumed true within a specified period, called the Challenge period, typically lasting seven days. This process mitigates the risk of invalid state transitions on the network, enhancing security. This innovative validation method is a key incentive for developers to consider building dapps on Optimism.
Better Smart Contract Security
Optimism simplifies smart contract auditing by leveraging existing Ethereum dapp testing systems. This ensures a high level of scrutiny, crucial for handling financial transactions. Additionally, the OVM's equivalence with the EVM guarantees comparable on-chain security measures, enhancing trust in the platform.
At Optimism, developers have a treasure trove of knowledge at their fingertips, along with a community so responsive it's practically their own personal cheer squad! Whether you're a seasoned pro or a newbie, there's always someone ready to lend a helping hand in this developer wonderland.
