Optimism
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About Optimism

Optimism is a layer 2 scaling solution designed to address the scalability issues of Ethereum, the largest smart-contracts blockchain.

 As more users join Ethereum, the network becomes slower and more expensive to use. To combat this, Optimism operates on top of the Ethereum mainnet, bundling large amounts of transaction data into manageable batches. This process significantly reduces costs and increases speed.

How Does Optimism Work?

Optimism uses a technology called rollups, specifically Optimistic rollups. These rollups bundle hundreds of transactions into one single transaction on the Ethereum mainnet, reducing the blockchain transaction or "gas" fee required to pay. Transactions are assumed to be valid until proven false in this system - hence the term 'Optimistic' rollups.

For users, using Optimism feels similar to using the Ethereum mainnet. It supports several decentralized finance wallets, including MetaMask. As of writing, it is the second-largest Ethereum layer 2, with $313 million locked into its smart contracts.

The Role of OP Token in Optimism

The platform has its own token called OP, which was launched in May 2022; 5% of the total supply was distributed via an airdrop to early users. The OP token gives holders participation rights in The Optimism Collective, a two-tier governance system composed of Token House and Citizens’ House.

Future OP token airdrops will be based on certain criteria, such as the use of an OP bridge before specific dates or active participation in decentralized governance; however, exact criteria aren't announced in advance to avoid gaming the system.

In conclusion, Optimism presents an innovative solution to Ethereum's scalability problem by offering faster and cheaper transactions through its layer 2 scaling solution.

Source

• https://www.coindesk.com/learn/what-is-optimism/