Optimism is a Layer-2 scaling solution for Ethereum designed to enhance Ethereum's performance by processing transactions off-chain using Optimistic Rollups. This approach aims to increase transaction throughput and reduce costs while maintaining security by submitting all transactions to the Ethereum mainnet for validation.
Optimism uses Optimistic Rollups, a technology that processes transactions off the main Ethereum chain and assumes they are valid, only verifying them if a dispute arises. It relies on the Proof-of-Stake (PoS) consensus mechanism, inherited from Ethereum, and is compatible with the Ethereum Virtual Machine (EVM) through the Optimism Virtual Machine (OVM). This compatibility allows developers to migrate and operate Ethereum dApps seamlessly.
Optimism's potential use cases include participating in its governance system, paying transaction fees, and contributing to public goods funding. It supports real-world applications like custom location services and Layer-2 networks for recurring public goods funding. Optimism is also used in sectors such as institutional decentralised applications (dApps) and blockchain interoperability to enhance connectivity and data accessibility.
Founded by Jinglan Wang, Karl Floersch, and Ben Jones in 2019, Optimism was developed to address Ethereum's scalability concerns. Key milestones include the launch of its first public testnet in October 2020, its mainnet launch in March 2021, and the transition to the Optimism Foundation later in November 2021. The platform continues to evolve, with major updates like the scheduled Granite hard fork.