Optimism (OP) is a Layer 2 scaling solution for Ethereum that utilizes Optimistic Rollups to improve transaction throughput and reduce gas fees, while inheriting the security model of the Ethereum mainnet.
Launched in 2021, Optimism aims to address Ethereum's scalability challenges by executing transactions off-chain on a second layer, while periodically committing transaction data to the Ethereum mainnet. This allows for faster and cheaper transactions without compromising on security, making Ethereum more accessible and usable for a wide range of applications.
OP, the native token of the Optimism ecosystem, is used for governance, incentivizing the security and development of the Optimism network including funding grants for projects built on Optimism, and rewarding users and developers who contribute positively to the ecosystem.
Optimism's use of Optimistic Rollups relies on the assumption that all transactions are valid by default, significantly reducing the computational load on the Ethereum mainnet. Only in the case of a dispute do validators need to provide proofs to challenge invalid transactions. The network can thus achieve higher throughput and lower transaction costs compared to executing all transactions directly on the Ethereum mainnet.
Optimism’s compatibility with Ethereum's developer tooling and smart contracts means developers can easily deploy existing Ethereum applications on Optimism with minimal changes, benefiting from the scalability improvements without the need to rewrite their applications.
The Optimism Collective is a governance model aimed at aligning the interests of users, developers, and the broader ecosystem. It is structured around a "Token House" and a "Citizens' House," each responsible for different aspects of the protocol's governance and operation. The Token House, where OP token holders participate, focuses on protocol upgrades and treasury management. In contrast, the Citizens' House is intended to represent the broader community's interests, focusing on public goods funding and ecosystem development.
