What is OP Coin? How does OP coin work?

OP Coin: Optimism Layer 2 Solution

Optimism is a Layer 2 extension solution built on the Ethereum blockchain, aiming to solve the problem of the Ethereum network Scalability and transaction speed issues faced. OP coins are the native tokens of the Optimism network and are mainly used to incentivize validators to participate in network verification and pay transaction fees.

How it works

Optimism uses a technology called "optimistic aggregation" to package multiple transactions into a batch and then verify them off-chain. The validator verifies the batch and submits a certificate to the Optimism network to ensure that all transactions in the batch are valid. If an invalid proof is found, the verifier will be punished.

Once the batch passes verification, it will be submitted to the Ethereum mainnet and finally confirmed. Optimism uses a fraud proof mechanism to ensure batch validity. If anyone questions a batch, proof of fraud can be submitted to the Optimism Network. Once evidence of fraud is verified, the batch will be revoked and the verifier will face penalties.

Uses of OP coins

OP coins have the following uses in the Optimism network:

• Incentive verifiers: Verifiers obtain OP coin rewards by verifying batches .
• Pay transaction fees: Users need to use OP coins to pay for transactions on the Optimism network.
• Governance: OP coin holders can participate in the governance of the Optimism network and vote on changes to the protocol.

The value of OP coins

The value of OP coins depends on the following factors:

• The utilization rate of the Optimism network: The higher the utilization rate of the Optimism network , the greater the demand for OP coins.
• Demand for transaction fees: The more transactions there are on the Optimism network, the greater the demand for OP coins.
• Governance Rights: OP coin holders’ governance rights over the Optimism network increase its value.

Overall, OP Coin is an important token that is critical to the operation of Optimism Layer 2 solutions. Its value is closely tied to the usage and governance rights of the Optimism network.

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