Optimism Explained
Ethereum Layer 2 scaling solution using optimistic rollups for faster, cheaper transactions.
What is Optimism?
Optimism is a Layer 2 scaling solution for Ethereum that uses optimistic rollup technology. It processes transactions off the main Ethereum chain (Layer 1) and batches them together before submitting them to Ethereum, significantly reducing transaction costs and increasing throughput while inheriting Ethereum's security.
The "optimistic" approach assumes transactions are valid by default and only runs fraud proofs if someone challenges a transaction during a dispute period. This design choice allows for high performance while maintaining the security guarantees of Ethereum itself.
Key Fact: OP is Optimism's governance token. Transactions on Optimism are paid in ETH, typically at 5-10x lower costs than Ethereum mainnet.
What Optimism Does
Inherits Ethereum Security
All transactions are eventually settled on Ethereum mainnet. Optimism inherits Ethereum's validator set and security guarantees, unlike independent chains.
Reduces Transaction Costs
By batching transactions and processing them off-chain, Optimism reduces gas fees significantly compared to Ethereum mainnet operations.
EVM Equivalence
Fully compatible with Ethereum's EVM. Developers can deploy existing Ethereum smart contracts without modification.
Fast Transactions
Near-instant transaction confirmation on the Optimism network, with final settlement to Ethereum occurring periodically.
How It Works
- 1.Transactions are submitted to Optimism's sequencer (centralized for now, decentralization planned)
- 2.Sequencer processes transactions and provides immediate confirmation
- 3.Transaction batches are posted to Ethereum mainnet
- 4.7-day challenge period where anyone can submit fraud proofs
- 5.After challenge period, transactions achieve Ethereum-level finality
What Optimism Doesn't Do
Instant Finality to Ethereum
While transactions confirm quickly on Optimism, withdrawing assets to Ethereum mainnet requires waiting through the 7-day challenge period. This is a security feature, not a bug.
Fully Decentralized Sequencing (Yet)
The sequencer is currently centralized, though decentralization is on the roadmap. This means transaction ordering is controlled by a single entity, though users can still force transactions through Ethereum if needed.
Operate as an Independent Chain
Optimism is fundamentally tied to Ethereum. It cannot function without Ethereum mainnet and relies entirely on Ethereum's security and data availability.
Eliminate All Costs
While significantly cheaper than Ethereum mainnet, Optimism still has costs for sequencer operations and data posting to Ethereum. Gas fees are reduced, not eliminated.
Trade-offs: Optimism makes specific design choices.
- • 7-day withdrawal delay for maximum security
- • Centralized sequencer for better performance (for now)
- • Fully dependent on Ethereum (this is by design)
Trading on Optimism with Blanket
Blanket supports Optimism through 0x Protocol integration. Trade popular tokens on Optimism with significantly lower fees than Ethereum mainnet while maintaining security through Ethereum's validator network.
Lower Fees
Swap tokens on Optimism at a fraction of Ethereum mainnet costs.
Ethereum Security
Benefit from Ethereum's security while enjoying L2 speed and cost advantages.
Fast Execution
Near-instant transaction confirmation for seamless trading experience.
Start trading on Optimism?
Connect your wallet and enjoy lower fees with Ethereum security.