What is Optimism Coin? Optimism Coin, a popular layer-2 scaling solution for Ethereum, launched an airdrop of its new OP governance token today. After that, many people started looking for an answer to the question “What is Optimism Coin”. As Kriptokoin.com, we have compiled the answers to questions such as what is Optimism Coin and how to get an OP for you in this article.
What is Optimism Coin?
A low cost and extremely fast protocol, Optimism Coin has taken its place among the latest Ethereum scaling solutions. The protocol solves Ethereum’s problems with the “optimistic rollups” technique. This technology collects many transactions performed on the network in a single transaction. Then, the transactions are transferred to another Blockchain. In addition, the logs are sent as feedback to the Ethereum network.
Optimism accelerated the Ethereum network with the success of optimistic rollups and caught the attention of investors. In addition, the project uses advanced data compression techniques to reduce the costs users often encounter on Ethereum. Dune Analytics data shows that Optimism Coin has reduced Ethereum transaction fees by a staggering 129 times. According to the same data, the protocol’s on-chain value in January was just over $1 billion. In March 2022, this figure was around 740 million dollars.
Actually, Optimism Coin was launched in June 2019. The team released the testnet in October. However, the rollout of an alpha mainnet took place in January 2021. Also, it took until October 2021 for a version of this network to launch compatible with the Ethereum Virtual Machine (EVM). Thus, the mainnet of the protocol was literally launched in December of 2021. Additionally, the project received $150 million investment in the B2 funding round in March. Thus, the initial value of the project was 1 billion 650 million dollars. In addition, leading cryptocurrency exchange Binance announced 10 days ago that it has integrated Optimism into its systems.
How does Optimism work?
Basically, Optimism is a big list of processes that are constantly being added. All of its consolidated blocks are stored in an Ethereum smart contract called the Canonical Transaction Chain. When a user performs a transaction, new blocks are generated by something called a sequencer. This sequencer instantly confirms valid transactions, then creates and executes blocks in layer 2 of Optimism. These blocks, called ‘aggregations’, are Ethereum transactions aggregated into a single transaction. The sorter compresses the data to reduce the size of the transaction and lower the cost. It then sends the transaction data back to Ethereum.
Optimism’s middleware is designed to mimic Ethereum’s code as much as possible. For example, it uses the same virtual machine as Ethereum. It also charges gas fees, even at lower rates, and these fees are paid in ETH only. Because of this similarity, it is possible to send any ERC-20 asset between two networks.
What is the OP token?
Optimism recently airdropped its own governance token OP. The airdrop provided free OP tokens to the first users of the project and Ethereum users. Thus, the project sent OP tokens to 249 thousand wallets for free. The idea for the airdrop first appeared in April. Along with the OP token, Optimism has announced its plans to launch a DAO. The DAO plans to use the proceeds from Optimism transaction fees to fund grants designed for “public goods” such as open source software. In addition, the project aims to reward selected users with new airdrops in the future. According to
Defi Llama data, the total locked value of the OP token is around $275 million. Also, the token supports 38 DeFi protocols, including major players like Uniswap and Synthetix. With the current collection supply of 4.29 billion tokens, 214 million of them were in circulation. Also, the OP is currently changing hands at $1.56.
What is Optimism Coin? How to get OP?
Optimism Coin is currently traded on many major cryptocurrency exchanges. These exchanges include Binance, KuCoin, Huobi Global, Gate.io, and Bybit. Interested investors should purchase USDT by signing up for these exchanges and depositing fiat money in their wallets. After that, investors can buy OPs with USDT holdings.
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