What is Optimism (OP)?
- Author
- CRYPTO PORT Editorial
- Published
- Updated
- Reading time
- 6 min
In short
Optimism is an Ethereum layer 2 using the same optimistic rollup approach as Arbitrum. What sets it apart is that its implementation is published as the OP Stack, so other projects can launch chains with the same design. OP is its governance token, within a governance structure that includes funding public goods.
Key points
- Its implementation is published as the OP Stack and used by other projects to launch chains
- Aims to interconnect the chains built from that shared standard
- Governance is bicameral, split between token holders and recognised contributors
- Runs a retroactive funding programme for development and public goods
Definition
An optimistic rollup layer 2 for Ethereum whose implementation is published as a shared standard, with the goal of interconnecting many chains.
Optimism starts from the same place as Arbitrum: ease Ethereum's fee and throughput limits by moving execution off-chain. It shares the same basic structure — batch execution, data posted to Ethereum, errors corrected through challenges. Ethereum's introduction of blobs cut the cost of posting that data, lowering fees across this whole category.
What is distinctive is that its implementation is published as the OP Stack, a set of components anyone can use to launch an identically structured chain. Several companies and projects now run their own layer 2s this way, and the stated ambition is to connect them under a shared standard so they behave as one economic zone, with consistent asset movement and account handling.
Governance is unusual too. It has two chambers — one voting by OP holders, one made up of participants selected for their contributions — with different matters assigned to each. It also runs retroactive funding, allocating money after results are visible, to support open-source development, education and other public goods.
The chain hosts the usual range of Ethereum applications: exchanges, lending, NFTs and social apps. Gas is paid in ETH, while OP is used for governance and funding votes.
Watch out for
- · Like other rollups, its sequencer is run by a limited set of operators and an outage affects users
- · Chains built on the OP Stack have different operators, so security levels are not uniform
- · Standard withdrawals wait out the challenge period
Frequently asked questions
What are chains built on the OP Stack?
They are separate layer 2 networks launched with the same software components. Sharing a standard does not mean sharing operators or tokens, so each must be assessed on its own.