During the latest crypto bull run, many new crypto users interacted with the Ethereum network for the first time and were surprised to see slow and expensive transactions. While the Web3 cryptocurrency of the Ethereum blockchain was central to the idea of the Internet, the blockchain itself struggled to meet user demand. This has led some founders to build competitive blockchains on completely unique infrastructure, while others in the developer community have focused their resources on building modular blockchain solutions that sit on top of Ethereum, making transactions faster and more efficient. ,
Most blockchain developers believe that these “layer 2” (L2) solutions are the future of how Ethereum will meet the needs of a rapidly growing network, and venture capitalists say they are scaling up the products they want to use. It looks like they could be the central interface for users to interact with decentralized applications, create NFTs, and transfer money. Many of these startups have welcomed the unicorn this year. One such scalable startup, Optimism, has found new support from Silicon Valley’s most prominent crypto investors Paradigm and Andreessen Horowitz.
Ethereum scaling startup told gaming-updates that they closed a $150 million Series B funding round led by Andreessen Horowitz and Paradigm at a $1.65 billion valuation.
According to tracker L2Beat, the “total value lock” (TVL) on the L2 platform has skyrocketed over the past year and these blockchains are currently worth about $5.75 billion. Optimism in TVL is approaching half a billion, although Offchain Labs’ arbitrage as an industry leader is approaching $3 billion. But unlike some of its competitors, Optimism is actually a public for-profit corporation with an open source code base that has already spawned several popular forks .
“We promised the public that we would not make any profit from operating the centralized parts of the system, so we wanted to remove the financial incentive to remain centralized,” Jinglan Wang, CEO of Optimism, told gaming-updates. “As we generate revenue, we return all of that revenue to fund public goods in Ethereum… not only do we want to say we want to be decentralized, we also want to show the community what we have. compatible. , happen.
L2 solutions come in several flavors, the most discussed of which are Zero-Knowledge (ZK) Rollup and Optimistic Rollup. Perhaps unsurprisingly, optimism based on optimistic rollup technology is generally seen as a more viable short-term solution due to some of the cryptographic complexity of ZK rollups used by other networks built by startups such as Starkware and Matter Labs.
“We want to be ready for the future, which is why we don’t close the door on the ZK opportunity. Integrate [Ethereum Virtual Machine] down the line,” Wang says. “We’re also practical, and we don’t want our job to become an academic hell forever – we want people to get used to it.”
Optimism has been widely available on the public “mainnet” for over a year now. Going public has its risks and benefits: the company recently paid out a $2 million reward for the work of a security researcher. Sauric A vulnerability has been discovered that allowed attackers to print money online. The reward was one of the highest ever paid by a blockchain startup.
Wang said, “We like to build in the open, every line of code we write is open source, which is why we are transparent about the vulnerabilities and bugs we find and disclose in our network.” “We want to create a good safety culture around an optimistic community where [ethical security hackers] Know that if they find vulnerabilities, they will be properly compensated.”
More recently, the company has been focusing on reducing the complexity of its codebase and promoting closer compatibility with code written for Ethereum so as not to require developers to modify their existing applications to be optimistically compatible. The company says the upcoming release, called “Bedrock,” will double what it calls “EVM equivalence” and should cut network costs in half.