Meet Optimism, The Ethereum layer 2 Solution And The Bedrock Upgrade

In March 2023, the Ethereum scaling network Optimistic which operates as a layer 2, announced its plans to enhance the network. The upgrade, named “Bedrock”,  intends to improve transfer speed, reduce costs, and improve interoperability with the Ethereum Virtual Machine (EVM). Hence, today Tokenize Xchange – Blockchain Trading Platform will help you answer questions about Optimism and its upcoming upgrade.

What is Optimism (OP), How Optimism can solve the scalability issue, and How the Bedrock upgrade is going to affect OP price? Let’s find out with Tokenize Blog!

What is Optimism? 

Optimistic is a Layer 2 scaling solution on Ethereum that is driven by Optimistic Rollups, a method that bundles massive quantities of transaction data into manageable batches helps reduce gas fees, and speed up transaction completion, thereby providing a smoother user experience while preserving the security of the original Ethereum chain. 

>>> Read more: Layer 2 Blockchain and Scaling Solution

How Optimism can solve the scalability issue for Ethereum?

To begin with, we need to go through the blockchain trilemma to understand the scalability issue of Ethereum. 

The blockchain trilemma is a theory that indicates the interaction of three objectives including security, scalability, and decentralization of a blockchain. Hence, it is impossible to maintain all three properties at a specific period of time. A blockchain commonly can perform two out of three of those. 

To confront this problem, the industry has come up with Layer-2. The Layer 2 solutions will interact with the Layer 1 blockchain to help solve some of the problems related to scalability. In other words, Layer 2 chains do not replace present blockchains. Although layer 2 chains would perform the majority of the work, layer 1 acts as the primary chain and provides security, while layer 2 provides rapid transactions, low transaction fees, and the potential to handle thousands of transactions per second. 

>>> Read more: What is Layer 1 blockchain?

So, how can Optimism solve the scalability issue of Ethereum? 

The answer is the advanced data compression technique called Rollup. 

The name “Rollup” refers to the process of splitting transactions off the main chain, then wrapping them in a single batch and creating proof, then uploading it to Layer 1. After so many transactions are combined into a single transaction, the “gas” fee is reduced to only one transaction, which is shared among all parties involved.

Moreover, to prevent invalid state transitions from occurring, Optimistic Rollup uses fraud proof. Simply put, fraud proof allows all transactions to be considered valid and approved unless it is proven to be false, in other words, innocent until proven guilty. Individual transactions do not need to be submitted with direct proof of their validity, hence, it saves time and fastens the network. Validators in the rollup have one week to query the entire rollup if they suspect false data.

Meet Optimism team

The team behind Optimism is the Optimism Foundation which is a nonprofit organization dedicated to running the ecosystem and growing the Optimism Collective. The Optimism Foundation is led by the two founders of Optimism, Jinglan Wang and Ben Jones, joined by Eva Beylin (Director of Graph Foundation), Abbey Titcomb (Head of Community of Radicle), and Brian Avello from the Maker Foundation.

According to optimism.io, the Optimism Collective is a fresh approach to properly rewarding those who create or sustain public goods. The Optimism Collective is a group of businesses, communities, and citizens who have agreed to defend the fairness ratio: Impact = Profit. The Collective is divided into two Houses: the Token House and the Citizens’ House. These houses must strike a balance between long-term goals and short-term incentives.

What is Optimism token (OP) – The native token of Optimism

Optimism’s native token $OP coin is utilized for governance, voting for protocol updates, airdrop incentives, and ecosystem finance. $OP is ranked 82 in terms of trading volume with the price at $2.82 at the time of writing. 

Optimism introduced its OP token on May 31 2022. A total of 231,000 addresses were eligible for a free airdrop of 214 million OP tokens. This represents 5% of the total 4.29 billion supply, implying that 95% of the supply has yet to reach the market. 

Optimism to upgrade to Bedrock

Optimist, an Ethereum layer 2 scaling system, will be launching a major upgrade in March 2023 with the goal of lowering transaction costs, increasing transaction speed, and improving interoperability with the Ethereum Virtual Machine (EVM).

Bedrock also acts as the foundation for Cannon, Optimism’s next-generation fault-proofing solution. Developed by Optimism and geohot, Cannon will be implemented to maintain Optimism’s ease and security. After the release of Bedrock, an Alpha version of Cannon is planned for release.

The “Bedrock” upgrade will add an important improvement to the network. 

Optimism first tweeted in early February that it was revising the requirements for the March 15 Bedrock upgrade. Nevertheless, a few weeks later, the Optimist Foundation announced that the vote on the upgrade will be moved to March 2-April 5 due to issues discovered in the code revisions.

OP Token, Optimism’s token, surged by 44% in February as a result of the Bedrock upgrade on Feb 2nd.

How to buy Optimism (OP) coin  

Want to buy crypto online but don’t know how? No worries! Tokenize Xchange is here to offer you many options, you can buy crypto with debit cards, with Grabpay, by swapping from XSGD or using direct bank transfer. You may easily purchase Optimism (OP) with the lowest fee and greatest security with Tokenize Xchange – Singapore Crypto Trading Platform.

Here’s the guide on how to buy Optimism:

Step 1: Select Trade on your dashboard. 

Step 2: Choose the market on the right of the dashboard

For example, click on SGD Markets tab, and under the tab you will see OP/SGD

Step 3: Choose the type of Buying

3.1. Limit Buy

A limit order will be filled at or better than a specified price. Any quantity that is not filled rests on the continuous order book until it is filled or canceled.

Your Balance: SGD balance left in your account.

Price per OP: Key in the price to buy for 1 OP in SGD.

Amount OP: Key in the amount of OP to buy.

Time In Force:

• Good Till Cancelled (GTC): Your order will stay on the order book until they have been completely filled or until you manually cancel them.

3.2 Market Buy

A market order is an order that will be executed immediately and in full by buying or selling from the bids and asks in the order book.

Your Balance: SGD balance left in your account.

Market: Your order will be filled immediately at the best market price at the time of your order.

Amount: Key in the amount of OP to buy.

Sell: Once the Amount is filled correctly, you may click on Buy OP to confirm your Total Bid.

>>> Read more: Market, Limit, and Stop Order: What is the difference?

Step 4: Confirm your order.

You will see a confirmation window. Check all details carefully. Please see the trading commission fee here. Click “Confirm” to proceed or “Cancel” to cancel the transaction.

For example: If you would like to buy 100 OP, you can select Market order, enter your quantity as 0.1 and confirm your order. You will then buy 100 OP from the market.

After confirming the order, you will see a green notification at the top of the page indicating that your order has been successfully placed.

Step 5: Finish the order

Your order will be matched automatically. You may view your order by selecting “Orders” and “Finished Orders”.

Under “Finished Orders”, you are able to view your completed orders.

How to cancel buy order

Click on “Pending Orders” to view all of your pending orders. 

Each order will show detailed information such as, Date, Market, Side, Order Type, Price, Total Units, Amount and Filled.

For orders that are still pending, you can click on “Cancel” to cancel your order.

And that’s all about Optimism, what is Optimism, how to buy Optimism ($OP), and its upcoming Bedrock upgrade. Will this upgrade significantly reduce transaction fees, speed up the network, and improve the Ethereum equivalence as it is supposed to? Let’s wait and see! Don’t forget Tokenize Xchange – Crypto Exchange Website Singapore is here to keep you informed with the latest updates from the Cryptocurrency market.