Optimism (OP Coin): In-depth analysis of the meaning and application of OP Coin

php editor Xiaoxin unveils the mystery of Optimism (OP currency) for you! OP Coin is a cryptocurrency that, unlike traditional Bitcoin and Ethereum, is built on the Optimism Layer 2 scaling scheme. Optimism is a solution for Ethereum’s scaling technology, designed to increase Ethereum’s throughput and reduce transaction fees. OP coins are the local tokens on the Optimism network. Users can use OP coins to conduct transactions, pay fees and participate in network governance. Through this article, we will take you to have an in-depth understanding of the principles and application scenarios behind OP Coin, and answer your questions about OP Coin. Let’s explore this exciting world of cryptocurrency together!

What is OP Coin?

Optimism is the Ethereum L2 network that promotes the development of Ethereum Virtual Machine (EVM) compatible with OptimisticRollup. OP is a governance token used for protocol governance.

Optimistic Rollups uses different types of proof mechanisms such as fraud proofs. As their name suggests, Optimistic Rollups are a proactive, optimistic approach because they do not provide any form of "proof" when publishing updated state to the Ethereum blockchain.

Anyone can publish a Rollup block containing a statement about the correct outcome of executing a certain transaction. When other nodes execute the same transaction, a challenge can be raised as long as they disagree with the first node's statement. An effective dispute agreement can resolve any disagreements and ensure that the right party will win the challenge.

All parties have strong incentives to only issue correct claims and do not question incorrect claims. Therefore, usually, all nodes will "simply" execute transactions without calling the proof code. The entire process is managed by the Layer1 contract.

Comprehensive introduction to the Optimism/OP coin project

1. Project Vision

The scaling solution to reduce the load on the Ethereum network is to move transaction execution to Layer 2 (L2), Rather than being done on the Ethereum blockchain.

2. Market demand

Improve TPS to solve congestion problems and low gas fees for transfers;

3.Project solution

Optimism is Ethereum Layer 2 scaling solution used on Ethereum, whose main feature is to make transactions on Ethereum applications very cheap. By moving transactions from one blockchain to another, miner fees are significantly reduced and throughput is increased. Optimism provides Ethereum developers with the opportunity to use all the tools available on Ethereum without making changes;

4. Token usage scenarios

Community governance, voting rights, project incentives Distribution;

5. Market perspective

The competition on the Layer 2 track is also becoming increasingly fierce. There is Arbitrum in the front and ZK duo (zksync and starkware) in the back. In addition, some new As projects take off one after another (such as Metis), Optimism is undoubtedly facing increasing pressure.

I hope all investors can understand what OP coins are through the above article. Open source, security, permissionless and decentralized in this project are what the blockchain needs to survive. In fact, Optimism and Arbitrum are both OptimisticRollup, so they are very similar in many aspects. Their main difference is actually their fraud Proof system. Optimism opted for a non-interactive fraud proof, which re-executes the entire transaction instruction and performs the required calculations on L1 to obtain the result. ZK Rollup chooses another mainstream 2-layer expansion solution on Ethereum, which uses validity verification. ZK Rollup has zksync and starkware.

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