In the past seven days, the Optimism (OP) token has experienced a 27% growth. This notable increase can be attributed to the heightened use of its Layer 2 technology, which has garnered significant interest among developers and cryptocurrency enthusiasts.
Optimism has proven to be a valuable solution for faster and more cost-efficient transfers on the Ethereum (ETH) network through the aggregation of transactions. Furthermore, the Layer 2 technology supports advanced smart contract functionality.
Optimism's scalability solution leverages the use of Optimistic Rollups techniques, which include a leader mechanism for enhanced security. Transactions processed through this system are considered secure, as long as they are confirmed by the leader. This method enables faster and more efficient transfers while still preserving the security of the main blockchain.
In January, Optimism recorded a 40% increase in its total value locked (TVL) due to the adoption of prominent projects such as Uniswap V3, Curve Finance and Aave. This surge in popularity is not solely due to the growth of Layer 2 but also the recent announcement of an optimization update by the project team, further enhancing its ability to meet the demands of the market.
The update, known as Bedrock, aims to overhaul Optimism's architecture, bringing increased modularity, simplicity and improved performance. Currently, the proposal is open for a vote by the Layer 2 community and, if approved, is expected to go into effect on March 15, 2023.
The new version implements a modular architecture, breaking down the OP Stack into three components: consensus, execution and settlement. The OP Stack comprises several modules that work together to form a complete chain, enabling the creation of custom models to meet specific application requirements. This technology aims to make Optimism more advanced and secure.
With the introduction of Bedrock, Optimism is expected to experience significant performance improvements, including reduced transaction costs, enhanced throughput and faster synchronization speeds.
This update brings Optimism closer to its vision of a future "superchain" structure in the cryptocurrency market, where multiple blockchains work together seamlessly and efficiently. The superchain model promises improved efficiency, scalability and security of individual chains, and Optimism is poised to play a leading role in this emerging movement.