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Cryptoknowmics 2022-07-04 02:00:09

All You Need to Know About Optimism: Low Cost Layer 2 Blockchain Solution

Optimism is the first Ethereum Layer 2 solution to develop an Optimistic network that is Ethereum Virtual Machine (EVM) compliant. It runs alongside Ethereum and can handle transactions at scale while inheriting Ethereum’s security. The word Optimistic Rollup comes from the manner transactions are handled. Transactions are assumed to be accurate by default, and no calculations are performed. To assure the legitimacy of the transactions, it uses a fraud-proof system. To know about Optimism in greater detail, continue reading. Fraud Proof System Working Verifiers (anyone running an Optimism network full node) can question the validity of transaction proposals given by sequencers. The rollup will do a check by conducting the transaction’s calculation on Ethereum. Before they are approved and transmitted to the Ethereum mainnet, transaction proposals can be disputed under the challenge time, set to one week for Optimism. The verifier is rewarded, while the sequencer is penalized if the proposal is found to be fake. Sequencers must have a pool of bonded ERC-20 tokens to collect the payouts. The needed coin in the instance of Optimism is ETH. This aligns incentives so that verifiers are rewarded for catching bad actors, and sequencers for only submitting proper transaction proposals. The false proposal is withdrawn and replaced with the correct proposal. The false proposed outcome of the transaction is eliminated, but the transactio...

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