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Optimism - OP

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What is Optimism (OP) and how does it work?


Optimism (OP) is a level two protocol based on the Ethereum blockchain. As it is based on the Ethereum main net, it can benefit from its security while helping scale the ecosystem with optimistic rollups, enabling transactions to be recorded on its chain before securing them ultimately on the main net.


The OP crypto token gives holders participation rights in The Optimism Collective, a two-tier governance system made up of Token House and Citizens’ House, with the latter coming later this year. This enables users to vote on technical decisions related to OP, such as software upgrades.



Optimism has quickly become one of the most prominent scaling solutions for Ethereum, with over $300M in transaction volume, hosting several significant protocols such as Synthetix (SNX), a derivatives exchange, Uniswap (UNI), a DEX, and Velodrome (VELO), an AMM. This chain can easily be added to Metamask and other wallets. In May 2022, OP scheduled an airdrop that ended up being so popular that it slowed down the blockchain for several hours.


Optimism is unique because it was designed around four core ideologies: simplicity, pragmatism, sustainability and optimism. It aimed to remain simple by using as much Ethereum code and infrastructure as possible, keeping the code simple and working with existing codebases. In addition, it focuses on being pragmatic and driven by real-world needs, building iteratively and implementing features gradually.


Optimism’s design process is focused on long-term sustainability, as well as scalability. The feature rollups take advantage of the Ethereum consensus mechanism, with blocks being constructed and executed on the L2 (Optimism) while keeping transactions batched and submitted on the L1 (Ethereum). As the L2 does not have a mempool, the transactions are immediately accepted or rejected, guaranteeing a smoother and expedited process, whilst benefiting from the overall security of the L1 chain.


Additionally, as transactions are submitted without direct proof of validity, they can be challenged and reverted for up to seven days, after which a transaction is considered final. For this reason, withdrawals from OP to Ethereum can take a week to complete.

 

Coin Analysis

Last update 17/6/2022


Optimism coin, or OP, launched on Binance in late May 2022, following its highly anticipated airdrop. Unfortunately, OP crypto couldn’t have launched at a worse time, as it hit the markets in a moment of total collapse for the crypto market, resulting in losses in the first few weeks for the coin.

OP/BUSD 4H candles chart
OP/BUSD 4H candles chart

Optimism crypto price was originally at $1.40 on its launch day and even went as high as $1.60 in the following hours before reversing its trend and starting a gradual decline. After that, the coin fell to below $1 before falling to $0.73 and finally to around $0.50, where it currently sits. It is still early to predict the outlook for this coin, as it has only been listed for a few weeks. However, it has already lost over 64% of its value since its launch.


This is not unusual for airdrop coins, where most holders will look to sell quickly to cash in the free coins, often resulting in a drop in price over the first few weeks. Therefore, it will be essential to see how Optimism crypto price manages to respond in the next few weeks and turn this trend around. However, as the project is solid and has many actual integrations and use cases, it is expected to see the coin eventually turn this trend around and start recovering.


OP is available for trading on BmyBit.com dApp.


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OP coinmarketcap

Optimism website

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