Ethereum (ETH) is considered one of the most secure and decentralized blockchains in the world. However, demand continues to grow, leading to a significant increase in network operating costs. Tier 2 scaling solutions aim to solve this problem. In this article, we will discuss Optimism, a protocol that uses transaction aggregation to improve scalability on Ethereum.
What is Hope?
Hope is a blockchain layer 2 designed to support Ethereum scaling in an efficient way. It does this by processing transactions and placing them in a single block before sending them to the Tier 1 blockchain for validation.
In addition, this solution uses scaling optimistic rollups to reduce costs and increase transaction execution speed.
The IS optimistic rollups is a technology used to determine the status of rollups on the main channel. Using this information, Tier 1 validators can query the received block and verify transactions. The latter then has 7 days to reject the suspected fraudulent transactions.
This configuration allows the file to be unloaded as much as possible mainnetby attempting to cast its validation nodes on a less heavy task.
However, hope must be able to offer the same security and decentralization guarantees as Ethereum, if not more.
How does Hope work?
Hope uses a smart contract called the “canonical transaction chain” to transmit transaction data from the main Ethereum chain to the layer 2. The new blocks are produced by a tool called a sequencer. The latter aggregates the transactions in batch. He then submits that batch to the layer 1 as a single transaction.
In fact, the sequencers based on Optimism perform calculations out of a chain. They then broadcast the consolidated transaction data to a smart contract on Ethereum on a regular basis.
For all publications made by the sequencer, the validators have a time slot that allows them to verify the veracity of the transaction data. At the end of this process, the smart contract it saves the information in the ledger and the validator receives a portion of the transaction amount as a reward for their work. Next, a new sequencer verifies the data recorded on layer 1 of the Ethereum network.
Ultimately, Hope encourages the involvement of sequencers and verifiers. It also encourages system users to participate in sequence data verification. However, it should be noted that users have a seven-day lockout period. When this time is up, users can withdraw their funds to the Ethereum network.
What are the benefits of Hope?
For both developers and users, Hope has many benefits. These include, but are not limited to:
- Ethereum Virtual Machine (EVM) Equivalence and Compatibility: Thanks to its virtual machine, Optimism can host all Ethereum-based decentralized applications (DApps). In fact, the Optimistic Vital Machine (OVM) is one of the most favored ecosystems of the EVM. So Ethereum developers can easily deploy their projects on Optimism with little or no modification to the initial architecture.
- Speed of transactions and reduction of fees: Ethereum has high latency and high costs due to the individual verification of each transaction. By accumulating the transactions in rollups, Hope can reduce the workload 10 to 100 times, depending on the complexity of the exchanges. In addition, with almost instantaneous completeness, users are able to verify their transactions in near real time.
- Data security: While Optimism processes the transactions, the Ethereum blockchain stores the data. This allows Optimism to take advantage of the security offered by the main web without losing scalability.
Despite these strengths, Hope has many disadvantages, namely: slow withdrawal times, risk of inequality incentives among network collectors, and censorship of transactions by key chains.
Tier 2 protocols represent a real opportunity to drive widespread blockchain adoption. As well as being promising significant scalability on the network, they have significant advantages such as reduced costs and delays. From his point of view, Optimism relies heavily on its advanced compatibility with the Ethereum virtual machine to differentiate itself from the competition.
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I came across a blockchain out of curiosity and stayed with it out of passion. I was amazed at the possibilities it offers through its various use cases. With my pen, I hope to help democratize this technology and show how it can help make the world a better place.