What is OP Optimism (OP) Token? An Innovative Layer-2 Solution on Ethereum
Optimism (OP), one of the Layer-2 scalability solutions in the Ethereum (ETH) ecosystem, aims to deliver faster transactions and scalability while maintaining the security of the ETH main chain. In this article, you will find out what Optimism is, how the OP token works, and important details about the project.
Ethereum and Scalability Issues The increasing number of users and transactions on the Ethereum network has brought scalability issues. Rising transaction fees and longer transaction times have posed a major challenge, especially for decentralized finance (DeFi) projects. Many Ethereum scalability projects have emerged to address these issues.
Optimism & OP Token
Optimism is a Layer-2 protocol developed on the Ethereum blockchain. This protocol increases transaction speed and reduces costs by moving the computation required to verify transactions off-chain. At the same time, it takes advantage of the security benefits of the main network by storing transactions on the Ethereum blockchain. The project has been adopted by many decentralized exchanges and applications using these solutions.
OP Token and Governance
Supporting the Optimism protocol, the OP token is a governance and utility token. OP token holders obtain governance through a decentralized body called the Optimism Collective. The Optimism Collective consists of two tiers, the Citizens' House, which manages financial decisions, and the Token House, which deals with technical decisions. OP token holders have a say over Optimism's finances and technical decisions.
OP Token Statistics
The total supply of OP tokens is set at 4,294,967,296 tokens. Initially, 214 million OP tokens were distributed via airdrop.
Basic Principles of Optimism
Optimism is built on four core concepts: simplicity, pragmatism, sustainability and optimism. The project aims to maximize the use of Ethereum code when building a Layer-2 solution for Ethereum. The principle of pragmatism emphasizes focusing on user needs and real-world constraints of the ecosystem.
Sustainability and Optimistic Rollup
Sustainability and Optimistic RollupaOptimism's blockchain design is built around the idea of long-term sustainability. Using Optimistic Rollup technology and Ethereum's consensus mechanism, a balance of security and scalability is achieved. Transactions are created and executed on Layer-2 and sent to Layer-1 (Ethereum) in batches.
Founders of the Optimism (OP) Project
Founders of the Optimism (OP) ProjectaOptimism project was founded in 2019 by Jinglan Wang, Karl Floersch and Kevin Ho. Jinglan Wang is currently the CEO of the project, and Karl Floersch and Kevin Ho have extensive experience in blockchain technologies.
Expectation
Optimism (OP) is a project that stands out with its Layer-2 solution and OP token that it brings to the Ethereum ecosystem. Based on the principles of simplicity, pragmatism, sustainability and optimism, Optimism aims to provide an effective solution for Ethereum-based applications.
