<p>Although Ethereum has advanced blockchain technology to a certain level, there are still limitations that cause difficulties in user experience including slow transaction speed and high fees. At the right timing, <a href="https://www.builder.news/crypto-insights/5-facts-about-layer-2" alt="5 facts about Layer 2 - An optimal solution for Ethereum" title="5 facts about Layer 2 - An optimal solution for Ethereum" target="_blank" rel="" class="">Ethereum layer 2</a> debuts as an optimal scaling solution for those challenges. One of the most noticeable projects that follow Layer 2 solutions is Optimism. <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a> will dive into <strong>Optimism review</strong> to provide users with the most necessary information they need to know.&nbsp;</p><h2><strong>Optimism overview</strong></h2><p><strong>Optimism (OP)</strong> is an <strong>Ethereum-Layer-2-scaling solution</strong> that is capable of supporting all Ethereum applications. The project targets using optimistic roll-up technology to bundle batches of transactions to lower gas fees. OP is the protocol's native governance token, which is primarily used to govern it.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed0bff9cdcee99a8e6023f659fee92.jpg" alt="Optimism review" title="Optimism review" width="600" height="333"></p><p>On April 27, 2022, Optimism announced to form a DAO called Optimism Collective. The DAO was built on the assumption that a "positive effect on the collective should be rewarded with profit to the individual" and the collective was created on the premise that public goods can be profitable.</p><p>Binance and Coinbase have recently listed $OP on their exchanges in June 2022 which joins hands to bring a bright future for the protocol and its followers. Besides, holders can find and trade $OP on OKX, Bybit, Kucoin, Huobi exchange with 1 $OP equals $1.18 at the time of writing (according to Coinmarketcap).</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed1f6ebc083004a8e6023f659fee92.jpg" alt="Optimism token price" title="Optimism token price" width="600" height="364"></p><h2>Optimism's Outstanding Features</h2><h3>Effective roll-up technology</h3><p>Scalability is currently the biggest problem with the Ethereum network. Scaling solutions like “rollup” aim to improve the overall experience for the end user.</p><p>Because of the high demand, Ethereum became too expensive to use for the average user. When the network is congested, users have to engage in a gas war trying to get their transaction into the next block, which means a higher gas fee will be acquired from users.</p><p>Layer 2 scaling solutions aim to solve this problem by processing the transaction “off-chain” and instead posting a very small “proof” to the Ethereum network to prove that the data is correct. By doing this, <strong>Optimism</strong> saves a lot of work for the Ethereum network while also making it more efficient and affordable for end users.</p><p><em><strong>&gt;&gt;&gt; Handy information:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/optimistic-rollups-zkrollups-EzsWo" alt="Optimistic Rollups versus ZK-Rollups - What is more optimal for Layer 2?" title="Optimistic Rollups versus ZK-Rollups - What is more optimal for Layer 2?" target="_blank" rel="" class=""><em><strong>Optimistic Rollups versus ZK-Rollups - What is more optimal for Layer 2?</strong></em></a></p><h3><strong>Comprehensive ecosystems with sets of applications</strong></h3><p>Although <strong>Optimism</strong> debuted in the second half of 2021 which means the protocol is rather young, Optimism has introduced to users a set of applications with many of the Dapps including leading protocols such as Uniswap, Synthetix.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ece17a79d5e7fea8e6023f659fee92.jpg" alt="optimism ecosystem" title="Optimism ecosystem" width="600" height="297"></p><p>The massive migration of Ethereum Dapps to layer 2 protocols like Optimism is expected to dramatically accelerate within a year. This process will only actually activate as more and more users start migrating from Layer 1 to utilize the efficiency and affordability of the Optimism network.</p><h3>Low gas fee</h3><p>After a series of updates to the network that implemented gas cuts, Optimism now offers the cheapest transaction fees on all existing Optimistic Rollups, including <a href="https://www.builder.news/crypto-insights/arbitrum-the-mosttvl-layer-2-project" alt="Arbitrum - Story about most-TVL layer 2 project" title="Arbitrum - Story about most-TVL layer 2 project" target="_blank" rel="" class="">Arbitrum</a> and the Boba network.</p><p>At the time of writing, Optimism currently offers users token swap fees of $0.70, followed by Boba Network at $0.77 and Arbitrum at $1.02.</p><p>The more people join Optimism, the more revenue Optimism will receive through the protocol fee. This essentially gives Optimism a higher budget when paying Layer 1 gas fees, thus further reducing fees for the end user.</p><h3>EVM-compatible</h3><p>The network is now fully compatible with EVM. While it doesn't affect the end-user experience, EVM parity is a big win for developers, as it's now much easier to deploy a Dapp on Optimism.</p><p><em><strong>&gt;&gt;&gt; Read more:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/optimism-price-surge-everything-happens-for-a-reason-vRZix" alt="Optimism price surge" title="Optimism price surge: Everything happens for a reason" target="_blank" rel="" class=""><em><strong>Optimism price surge: Everything happens for a reason</strong></em></a></p><h2>Optimism Tokenomics</h2><ul><li><p><strong>Ticker:</strong> OP</p></li><li><p><strong>Blockchain:</strong> Ethereum</p></li><li><p><strong>Contract:</strong> 0x4200000000000000000000000000000000000042</p></li><li><p><strong>Token Standard:</strong> ERC-20</p></li><li><p><strong>Token Type:</strong> Utility, Governance</p></li><li><p><strong>Total Supply:</strong> 4,294,967,296</p></li></ul><h2>Optimism token use case</h2><p>Optimism Collective is based on the idea of creating a powerful and valuable development ecosystem:</p><ul><li><p>Cumulative value for OP token holders.</p></li><li><p>Value accrues to contributors and builds directly from “retroactive public goods funding”.</p></li><li><p>Value accrues to users and community members from OP's ongoing airdrops, from project incentives made possible by OP ecosystem funding.</p></li></ul><h2>Optimism roadmap</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ece17a79d5ed0fa8e6023f659fee92.jpg" alt="optimism roadmap" title="Optimism roadmap" width="600" height="716"></p><h2>Optimism team</h2><p>The Optimism Foundation is a non-profit organization dedicated to developing the Optimism Collective.</p><h2>Optimism investors</h2><p><strong>Optimism</strong> announced on March 17, 2022, that it had raised $150 million in Series B round at a valuation of $1.65 billion. According to TechCrunch, the round was co-led by Paradigm and Andreessen Horowitz (a16z).</p><p>In February 2021, Optimism announced a $25 million Series A funding round led by Andreessen Horowitz.</p><h2>Optimism social channels</h2><ul><li><p>Website:&nbsp;<a href="https://www.optimism.io/" target="_blank" rel="nofollow" class="">https://www.optimism.io/</a></p></li><li><p>Twitter:&nbsp;<a href="https://twitter.com/optimismPBC" target="_blank" rel="nofollow" class="">https://twitter.com/optimismPBC</a></p></li><li><p>Discord:&nbsp;<a href="https://discord-gateway.optimism.io/" target="_blank" rel="nofollow" class="">https://discord-gateway.optimism.io/</a></p></li><li><p>Twitch:&nbsp;<a href="https://www.twitch.tv/optimismpbc" target="_blank" rel="nofollow" class="">https://www.twitch.tv/optimismpbc</a></p></li></ul><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

Optimism token price surged recently! Let's find out about Optimism for more answers.

Optimism (OP) - A Layer-2 scaling solution for Ethereum applications