What is OP coin: Optimism Ethereum Layer2 scaling solution

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Want to learn about Ethereum's revolutionary solution for scaling? As the native token of the Optimism network, OP Coin is leading the innovation of Layer2 technology. With Optimistic Rollups technology, Optimism not only significantly reduces transaction fees, but also increases processing speed. This article will dive into the features of OP Coin, how Optimism is changing the Ethereum ecosystem, and why investors are flocking to it. Let's demystify OP Coin together!

OP Coin: A revolutionary solution to Ethereum scaling

OP Coin is the native token of the Optimism network as an important part of the Ethereum Layer2scaling solution. Optimism uses Optimistic Rollups technology and is designed to address Ethereum network congestion and high gas fees. To date, Optimism has become the second largest total lock-up value (TVL) in Layer 2, with a market capitalization of $1.562 billion**.

The initial total supply of OP coins is 4.29 billion, of which 37.73% is in circulation. The token distribution scheme is as follows:

| Assigned to | Percentage | |---------|-----| | Eco Fund | 25% | | Public Finance Fund | 20% | | User Airdrop | 19% | | Core Contributors | 19% | | Early investors | 17% |

The main function of OP coin is to participate in the governance of the Optimism ecosystem. Holders can vote on important proposals to influence the development direction of the platform.

How Optimism Changes the Game Rules of Ethereum

As a scaling solution for Ethereum's Layer2, Optimism significantly improves transaction processing capacity through Optimistic Rollups technology. Compared to the Ethereum mainnet, Optimism can reduce transaction costs by more than 90% and increase transaction speed to nearly real-time.

The core advantage of Optimism is:

1. Highly compatible with Ethereum: Developers can migrate EthereumDApps to Optimism without learning a new language.
2. Security: Inherits the security of Ethereum while introducing additional security mechanisms.
3. Scalability: By batch processing transactions, significantly increasing network throughput.

At present, Optimism has supported 97 protocols with a total lock-up value of more than $500 million, showing strong ecosystem momentum.

OP token: the new darling of investors

Since its official launch on May 31, 2022, the token ()[OP] has become the focus of investors' attention. The current price of OP coin is approximately 0.9668 US dollars, although it has fallen from its historical high of 4.84 US dollars, it has still risen by 140.4% from its historical low of 0.4022 US dollars.

The investment value of OP coin is mainly reflected in:

1. Market position: Ranked 55 in the CoinMarketCap ranking, showing strong market recognition.
2. Technical advantages: Coinbase adopts the OP Stack technology, bringing more institutional cooperation opportunities for Optimism.
3. Ecological development: With the upgrade of the Bedrock network and the launch of OP Stack, the Optimism ecosystem is expected to further expand.

However, investors also need to pay attention to potential risks, such as limited token empowerment, competition of public chains with zero-knowledge proof technology, etc.

Optimistic Rollups: The magic behind the technology

Optimistic Rollups is the core technology of Optimism and works as follows:

Batch process and compress transactions to reduce the data burden on the Ethereum mainnet. 2. Adopting an 'optimistic' verification mechanism, assuming all transactions are valid and only verifying when a dispute arises. 3. Through the challenge period mechanism, ensure the security of funds and the finality of transactions.

This technical solution not only greatly improves transaction processing efficiency, but also maintains a high degree of compatibility with the Ethereum mainnet, providing convenience for DApp developers.

With the launch of the Bedrock network upgrade, Optimism will further optimize its technical architecture, which is expected to reduce transaction costs by another 30-50% and bring users a better experience.

Conclusion

As the core of the Optimism network, OP Coin is leading the Ethereum scaling revolution. Through Optimistic Rollups technology, Optimism significantly reduces transaction costs and increases processing speed, while maintaining a high degree of compatibility with Ethereum. With the booming ecosystem and continuous optimization of technology, OP Coin shows strong investment potential. However, investors still need to carefully assess market risks, weighing factors such as token enablement and competitive landscape.

*Risk warning: Tier 2 technology is highly competitive, emerging solutions may affect Optimism's market position, investors should pay close attention to industry developments. *