The optimistic rollup ethereum layer2 scaling solution finally made it to Ethereum to execute faster and cheaper transactions as we are about to read more in the latest Ethereum news.
The Ethereum optimistic rollup solution released a limited testnet version of the Layer2 solution and apart from the ZK rollups, this one is the new leading solution for smart contract scalability on ETH. Synthetix Network was the first Defi project to join the testnet and others such as Chainlink and Uniswap followed closely behind.
Optimism PBC launched the first phase of the layer2 scaling solution for Ethereum and other DeFi platforms such s Chainlink, Uniswap and Synthetix are already lining up to get used of the cheaper and faster network speeds. As many DeFi relies on composability with one another, constant smart contract calls were the main reason for ETH’s congestion lately. This led to an increase in the transaction fee and the long waiting times for a lot of the popular applications and even caused some to shut down. The rollup offers one solution to this problem.
The rollup executes smart contracts outside of ETH and uses the layer1 network to store the results. The solution offers a 100x improvement in the transactions per second on the ETH network. Optimism even announced the first phase of the Optimistic rollup testnet by collaborating with the decentralized derivatives exchange platform Synthetix. The latter will incentivize participants with more than 200,000 SNX to use the testnet. Optimistic will be introduced in four phases as the Optimistic Virtual Machine gets linked to the ETH mainnet. It will only cater to minting and burning the stablecoin sUSD and will claim the SNX rewards.
At long last – light at the end of the tunnel. Welcome to the first phase of the Optimistic Ethereum Testnet . https://t.co/cjfhB0WU98
— Optimism (@optimismPBC) September 25, 2020
ZK-rollups and Optimistic rollups are the main leading solutions for scaling ETH smart contracts and dapps. ZK-rollups promises to scale ETH to 500 tx/sec and leverages the non-interactive zero-knowledge proofs. While Tether chooses ZK-rollups for scaling the transactions made on ETH, the DeFi ecosystem looks to have chosen Optimistic rollups. According to Vitalik Buterin, this is the intermediary solution for scaling ETH before the launch of ETH 2.0 but it Is an easier one to implement with a lot of individuals calling on Defi smart contracts. Kain Warwick, the founder of Synthetix noted in the plans for L2 Synthetix that:
“I strongly believe that the transition of much of DeFi to the OVM will be an inflection point where DeFi is no longer a whale game, but is accessible to anyone to both build on and use.”