Optimism and Coinbase Launch 🚀
The optimistic rollup is an L2 protocol that increases Ethereum's throughput.
Optimismistic on Optimism
Optimism is built on the Ethereum network as a layer 2 that utilizes optimistic rollup’s hence the name Optimism. Optimistic rollups are layer 2 (L2) protocols designed to extend the throughput of Ethereum's base layer. This allows blockchains like Optimism to scale with Ethereum’s security while also scaling transactions. Optimism has EVM-equivalent architecture with a minimalistic approach which gives Optimism an advantage against other L2’s. So instead of having to backtrack and update complex architecture, Optimism can focus on new features while providing a blockchain that is super reliable and scalable.
Optimism Explodes In User Growth
The amount of users on Optimism have drastically increased since the end of 2021. Optimism has had multiple airdrops to users who have used their platform. This has resulted in the rise of use across their ecosystem. Airdrops can be beneficial for projects like Optimism that essentially incentivize users to experiment and get familiar with their ecosystem. Other major platforms like Collabland have opted into using Optimism’s blockchain to host their own native token $COLLAB and facilitate the $COLLAB airdrop further compounding user growth on Optimism.
Coinbase Uses Optimisms “OP Stack” for Base
Coinbase announced on Feb. 23rd, 2023 their own layer 2 solution called Base. Base is built using Optimism's OP Stack. The OP Stack is a modular, open source blueprint for highly scalable blockchains built by Optimism. This gives indication that Coinbase believes in a more flexible approach to how they envision the future of blockchain while aligning with Optimism. This is a huge nod to “Optimism Collective” and adds a major core developer into their ecosystem. This validates Optimism's model around the OP Stack itself while creating somewhat of a flywheel around their ecosystem. This could attract more core developers to use the OP Stack at the same time. Base will also contribute a portion of its fees to Optimism’s Collective Treasury as a result of using the OP Stack. Coinbase aims to build a robust developer ecosystem of interoperable L2s and rollups that will help onboard the next billion users into web3.
$OP Price Surges
Following Coinbase’s announcement of “Base”, the $OP token surged from around $2.70 to $3.20 the following day. The $OP token itself has rallied since the beginning of the year from around $0.90 cents to its current price of around $2.87 as this article is being written. With the announcement of Base this could keep $OP on everyone’s radar for the foreseeable future, especially if they add more core developers into the Optimism Collective, making the case for a very positive outlook on the $OP token.
~This episode is sponsored by Kraken~ Kraken website ➜ https://bit.ly/KrakenPBN