What is Optimism (OP)?

What is Optimism (OP)?

Let's get to know Optimism, one of Layer 2 solution that shouldn't be missed



When it comes to Layer 2, there may be a variety of networks like Polygon or Immutable X, but it's undeniable that one of the most powerful Layer 2 at the moment is Optimism which just provide an Airdrop of OP coin recently.



Wondering what Optimism (OP) is? Let's dive deep together with us!



What is Optimism (OP)?



Optimism is a network that runs on Ethereum through the work of smart contracts to solve the network expansion (Scaling Solution) or known as Layer 2 which allows the network to support a larger number of transactions beyond the main network or Layer 1 networks like Ethereum.



Optimism is a network where users can build dApps through smart contracts to provide a real use case and to transfer financial value through native currencies such as OP coins, which are the medium of exchange on the network of Optimism.



Optimism developer team



The Optimism project was created in 2019 by a developer team working under the Optimism Foundation, formerly known as the Plasma Group. The Optimism Foundation is a non-profit organization that is designed to be convenient, fast, and secure.



The Optimism Network was built and used on the Mainnet in late 2021, and in terms of value, Optimism has saved more than 1 billion US dollars in gas fees in comparison with the use on the Ethereum network.



Strengths and Interesting Technologies of Optimism



Optimistic Rollup is one of the Layer 2 technologies that will help strengthen the network scalability with different methods for each technology. For Optimistic Rollup, it will make transactions faster, costs less gas fees, and safe because the system uses the security of the Ethereum network.



Rollup is a collection of data into a single lump. The compressed data is then saved on the Ethereum network again, resulting in significantly reduced transaction costs and data size, and It also drives the use of the Ethereum network too.



The Optimistic Virtual Machine (OVM) is a software platform for developers to create and develop on Optimism networked that is interoperable with the Ethereum Virtual Machine. This means that by developing or building dApps on Optimism, developers can immediately use code running on the Ethereum network to build smart contracts on Optimism without the need for any modifications.



The Optimism Collective is a new management model that promotes a more decentralized networks. It will work with the Optimism Foundation to support developers that are building dApps on the ecosystem and those who are contributing to the development of the Optimism Community.



What can OP coins be used for?



OP Coins are used in different ways through the Optimism network as follows:



  • Financial value can be passed between users on the Optimism network through native coin such as OP coin but the gas fee for various transactions are will be paid in ETH instead.

  • Can be used as Governance Token which allows OP token holders to vote for someone to help manage and develop Optimism

    

    



Refer to Coinmarketcap, as of June 15, 2022, OP is the 2789th largest cryptocurrency with a total market capitalization of approximately $120 million, or about 4.21 billion baht. The OP coins have a total supply of 4.29 billion dollars and there are approximately 214 million coins in circulating supply representing 5% of the total supply.

Moreover, OP coins reach an all-time high at 154 baht, and at the time of writing the price is at around 19.69 Baht.



When did the 1st Optimism Airdrop happen? 



The OP Coin was airdropped to users for the first time on May 31, 2022. Airdrop recipients are those who contribute to the implementation of the Optimism network, such as implementing Optimism projects, using bridges, participating in governance, etc.



Moreover, the OP Coin Airdrop will not end here as Optimism has announced that there will still be an Airdrop in the next round! Those who are interested or want the Airdrop next time need to use the Optimism network. The rules for receiving Airdrop may be different from the first time. We have to wait to follow up with the announcement from Optimism.



Conclusion



Optimism is known as one of the coins to watch and not to be missed. Even in a bear market, it can also be an opportunity for investors because a well-funded coin tends to grow in the future and when the bull market returns, it may increase opportunities for investors as well.



However, every coin has different advantages. Investors should always research for information before investing which allows investors to analyze and manage their risks effectively.





Reference:

Optimism, Decrypt, Beincrypto, Coinmarketcap

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