ptimism (OP) was first created in 2019, introducing their Testnet and later launching the Mainnet in 2021.
The vision is to scale Ethereum, and all of its values and make ETH transactions faster and a lot cheaper for users and developers on the network.
Put simply, Optimism is created as an extension of Ethereum. Optimism thrives for Ethereum to be successful, hence its mission to make Ethereum a more scalable network.
How does it all work?
The innovation that puts Optimism on the map is their idea, the Optimistic Rollup.
“Optimistic rollups” are a Layer 2 construction that provides the Ethereum network with better throughput and latency.
Why use Optimism?
Optimistic rollups process multiple transactions which are then “rolled up” into one simple transaction which is sent to another blockchain, where the transaction will be finalised at a cheaper cost.
This prevents congestion on the Ethereum Mainnet and improves scalability.
Optimism is fixing some of Ethereum’s largest problems, problems which steer users to so-called ETHKillers, such as AVAX or FTM, where gas fees are nothing compared to Ethereum.
So far, Optimism has saved over $1 Billion worth of gas fees for users and developers and currently has a TVL of a whopping $867.25M+.
According to DeFiLlama, Optimism has the 9th Largest TVL (Total Value Locked) out of all the chains. They have a higher TVL than Fantom and are very close to overtaking the Arbitrum Network.
Have you ever heard of Optimism’s new and unique innovation, the Superchain?
Well, you’re going to want to listen closely because this is going to change the game.
The Superchain is a linear scalable network of chains that work hand in hand by sharing security, a community later and more. It is designed to allow new chains to be deployed in a permissionless manner which is interoperable with the other chains.
This will destroy the current multi-chain technology that spans the whole of decentralised finance. The Superchain will create true interoperability and scalability without affecting any ecosystems along the way.
With the rise of Layer 2 technology, everyone is choosing to build on either Optimism or Arbitrum. Here are some of the leading protocols on the Optimism network that make up the majority of Optimism’s Total Value Locked (TVL):
This is one of the leading open source Liquidity protocols out of all the blockchains and is very popular on the Optimism network, which is used to borrow/lend crypto assets.
The leading DEX on the Optimism network that was actually forked from Solidly. Velodrome is the most rewarding platform on the network and is notorious for its ve(3,3).
If you’re new to Velodrome, feel free to watch this QUICK YouTube Tutorial!
It wouldn’t be right if the leading Ethereum DEX wasn’t compatible with one of the largest Ethereum Layer 2s. Uniswap is one of the most popular platforms to swap cryptocurrencies on both Ethereum and Optimism.
There are currently over 180 projects on the Optimism chain, some of which were built on their network, and some that are integrated from other networks, such as Olympus DAO, SushiSwap, ChainLink and so many more!
Never used Uniswap before? Watch this EASY Step-by-Step YouTube video!
Optimism (OP) Token
Optimism’s native token to the network is OP which was originally launched through an airdrop which overall distributed 5% of its supply. The second Optimism airdrop is going to be distributed this year (2023).
OP is used to pay transactional fees on the network, also known as gas fees. OP holders can also participate in The Optimism Collective.
The Optimism Collective uses a unique two-tier governance system which is broken down as so:
- Token House - This is the active governance protocol used to govern technical decisions such as software upgrades.
- Citizens House - OP token holders can govern the public goods sector of Optimism through this governance system.
How To Buy Optimism (OP)
The Optimism OP token is available on most of the largest centralised exchanges, making OP one of the most popular and easiest cryptocurrencies to get your hands on.
There are two main ways to buy OP, but either way, you will always go through a centralised exchange (CEX). Here are the options:
Option 1- Centralised Exchange
The OP token is one of the easiest obtainable cryptocurrencies. 99% of all centralised exchanges (CEXs) allow you to buy or trade OP.
Here are some Centralised Exchanges we recommend for you to buy or trade the OP token:
- Binance - The most popular CEX in the world
- ByBit - EARN UP TO $30K in DEPOSIT BONUSES
- BitGet - Trade on BitGet and receive 0% Deposit Cashback + $5,000 DEPOSIT BONUSES
- Coinbase - Spend $100 and Get $10 back!
Option 2 - DeFi Wallet & Decentralised Exchange
To get started you will need a DeFi wallet and make sure to secure your seed phrase with a hardware wallet (Trezor):
Once you have your wallet and have deposited ETH tokens from your centralised exchange (CEX) to your DeFi wallet, you can freely swap/trade your ETH tokens for any other cryptocurrencies on the network using a decentralised exchange (DEX), here are some recommended Optimism Decentralised Exchanges (DEXs) with tutorials below:
- Velodrome - Number 1 Native DEX on the Optimism network
- Uniswap - One of the largest DEXs on all the blockchains
- SushiSwap - Multi-Chain DEX
There are multiple decentralised exchanges on the Optimism network, all of which have different advantages so choose the best one for you!
How to use the Optimism Network?
Using the Optimism Network is very easy. Just set up a Metamask wallet, add the Optimism network, and send OP tokens from a CEX (any of the listed above) to your Optimism Wallet Address found in your Metamask wallet.
You can check out our YouTube video which guides you every step of the way!
You can be set up and ready to go in 5 minutes!
At the time of writing, Optimism is currently sitting at $4.57 with a market cap of $1.12B. OP has seen an ATH of $2.21 and a peak market cap of $1.24B. It seems that the power of Optimism has been discovered. (According to CoinMarketCap)
If you are interested in using the Optimism network, users can connect to the Mainnet with supported wallets like @Metamask. If you are a developer looking to launch an app, head to the website which will be down below!
If you would also like to check out our video on Optimism’s number 1 competitor, Arbitrum. You can follow this link.