Black_background_logo_BitcoinWorld-removebg-preview
Latest News

Optimism Soft Launches Ethereum-based scaling solution on Mainnet

Optimism Soft Launches Ethereum-based scaling solution on Mainnet
Image by Peter Patel from Pixabay

Synthetix announced that Optimism launches its Layer 2 scaling solution, the Optimistic Virtual Machine (OVM) on the L2 Optimistic Ethereum (OΞ) mainnet. The ‘optimistic rollup’ concept is to perform transactions faster and in a more affordable way by employing smart contracts outside of Ethereum and only collecting the root chain results.

Ethereum gained a tremendous momentum last year, with transaction fees overtaking Bitcoin and expected fee revenue in the market. The demand for Ethereum applications has been rallying, and apps such as Uniswap ruled the market, notwithstanding surging network fees. Optimism’s scaling solution expects to unfasten this growth by decreasing the number two network’s cost.

Optimism Soft Launch may face bugs

Various analysts in the market observe the Optimism launch as a possible catalyst for additional upward price momentum. However, the result could go either way. The Optimism team has been concerned to state that defects may appear in the launch’s initial phases. The testnet occurs in phases to trial-specific characteristics in batches, instead of one fell swoop, possibly a lesson learned from failed attempts like the Spadina testnet.

Moreover, the team listed defense characteristics like authenticated withdrawals, permission contract deployment, and upgrade keys while urging the community not to consider the soft launch as the finished product. Before the release, the team behind Optimism announced the mainnet release could occur in interruptions and bugs. Therefore, the team will operate the upgrade keys for the first six months to defend user funds. The public testnet will release on March 15. This will be a significant moment for Ethereum, and various seasoned traders will be anticipating with a sigh to observe its success.

However, with gas fees surging, there have been various other L2 deployments currently. Last week, Synthetix launched its L2 upgrade also based on Optimism’s platform. The update, called Castor, will lead to two significant developments as the first step to full Layer 2 integration. It will incorporate two smart contracts that allow Layer 1 and withdrawals on Layer 2, which employs optimistic rollups. There will also be a migration to a new SNX escrow contract that carries the L2 transition.

Follow BitcoinWorld for the latest updates.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.