{"id":"optimism","title":"Optimism","content":"**Optimism** is a [layer 2 blockchain](https://iq.wiki/wiki/layer-2) that acts as a scaling solution for [Ethereum](https://iq.wiki/wiki/ethereum). It processes several transactions on its [blockchain](https://iq.wiki/wiki/blockchain) and posts them in batches on [Ethereum](https://iq.wiki/wiki/ethereum), providing fast speed and low fees. \n\nIt is designed so that users can send arbitrary messages between [smart contracts](https://iq.wiki/wiki/smart-contract) on Optimism and [Ethereum](https://iq.wiki/wiki/ethereum), which makes it possible to transfer assets, including [ERC-20](https://iq.wiki/wiki/erc-20) tokens, between the two networks. [\\[1\\]](#cite-id-72itr0q6kfp)  [\\[2\\]](#cite-id-k7fjdt7tpmm) \n\n[YOUTUBE@VID](o-CZnUNXdmU)\n\n## Overview\n\nOptimism continues to operate as an [Ethereum](https://iq.wiki/wiki/ethereum) Layer 2 that bundles transactions off-chain and settles them back to [Ethereum](https://iq.wiki/wiki/ethereum) mainnet to reduce costs and increase throughput. In 2025–2026, the OP Stack and the Optimism Superchain model saw broader adoption through new partnerships and chain deployments, with Optimism reporting that the OP Stack powers 50+ chains and that enterprises are increasingly adopting OP Stack-based deployments. [\\[13\\]](#cite-id-HcIDO5RtlsAEl8Q6)​\n\nOptimism operates as a scaling solution for [Layer 1](https://iq.wiki/wiki/layer-1) networks by employing a process known as rollup. It collects transaction data from the main chain, consolidates it into batches, and settles them. These batches of data are then transmitted back to Ethereum's [mainnet](https://iq.wiki/wiki/mainnet), where they undergo validation as additional data blocks. By bundling hundreds of transactions into these batches, Optimism significantly reduces the fees required for settlement compared to executing them directly on the [Ethereum](https://iq.wiki/wiki/ethereum) network. [\\[1\\]](#cite-id-72itr0q6kfp)​\n\nOptimism leverages Optimistic Rollups, a cryptographic technique that utilizes smart contracts as bridges between Layer 1 (L1) and Layer 2 (L2). This technique incorporates a mechanism known as \"fraud proof,\" which ensures the integrity and security of the transaction process. [\\[1\\]](#cite-id-72itr0q6kfp)​\n\nIn May 2026, Optimism introduced OP Enterprise, an enterprise-focused offering for private, permissioned, or public OP Stack deployments with production SLAs and managed service options. OP Enterprise includes tiers for OP [Mainnet](https://iq.wiki/wiki/mainnet) deployments, Self Managed chains, and Fully Managed chains, with stated timelines of 4–8 weeks to testnet and 8–12 weeks to production for most customers. [\\[13\\]](#cite-id-HcIDO5RtlsAEl8Q6)​\n\n### Pectra Upgrade\n\nIn May 2025, Optimism activated the Isthmus [hardfork](https://iq.wiki/wiki/hard-fork), integrating features from [Ethereum’s Pectra upgrade](https://iq.wiki/wiki/ethereum-pectra-upgrade) into the OP Stack and the broader Superchain. This made the Superchain the first [Layer 2](https://iq.wiki/wiki/layer-2) ecosystem to adopt Pectra shortly after its implementation on [Ethereum](https://iq.wiki/wiki/ethereum) mainnet.\n\nThe upgrade affected multiple OP Stack chains, including OP [Mainnet](https://iq.wiki/wiki/mainnet), [Base](https://iq.wiki/wiki/base), [Ink](https://iq.wiki/wiki/ink), Soneium, and [Unichain](https://iq.wiki/wiki/unichain). Pectra introduced enhancements such as blob-based data scaling and the implementation of EIP-7702, which enables account abstraction and improves user experience across applications and wallets.\n\nThe OP Stack’s architecture, designed for [EVM](https://iq.wiki/wiki/ethereum-virtual-machine-evm) equivalence and minimal divergence from [Ethereum](https://iq.wiki/wiki/ethereum) L1, allowed the swift integration of Pectra’s improvements. As a result, L2 developers and users within the Superchain gained access to these features within 48 hours of their launch on [Ethereum](https://iq.wiki/wiki/ethereum).\n\nAs of May 2026, the Superchain has adopted Pectra features, and further work such as Blob-Parameter Only (BPO) forks and the Fusaka upgrade remain active proposals or planned initiatives to continue improving throughput and reliability.  [\\[14\\]](#cite-id-p5Lrl4gcLbS6FPXY)​\n\n### Optimistic Rollups\n\nOptimism utilizes a technology known as rollups, specifically Optimistic rollups. Rollups are named as such because they combine the information from numerous transactions, including [non-fungible token](https://iq.wiki/wiki/non-fungible-token-nft) (NFT) mints and token swaps, into a single transaction on Ethereum's mainnet (referred to as layer 1). By consolidating multiple transactions into one, the cost of the blockchain transaction, also known as \"gas\" fee, is significantly reduced to just a single transaction. This cost is conveniently shared among all participants involved. [\\[2\\]](#cite-id-k7fjdt7tpmm)​\n\nThe term \"Optimistic rollups\" stems from the approach taken in processing transactions. In this method, transactions are assumed to be valid unless proven otherwise, operating under the principle of \"innocent until proven guilty.\" A specific timeframe is allotted during which potentially invalid transactions can be contested by presenting a \"fraud proof\" and conducting the transactions' computations based on the available state data. Optimism covers the gas expenses required for running the fraud proof computation. [\\[2\\]](#cite-id-k7fjdt7tpmm)​\n\n### Optimism x Succinct\n\nAs part of an increasingly hybrid proof approach on the Superchain, Optimism named [Succinct](https://iq.wiki/wiki/succinct) as its first preferred provider to accelerate ZK proving on the OP Stack, making validity proofs canonical starting with OP [Mainnet](https://iq.wiki/wiki/mainnet) and complementing existing fraud-proof mechanisms. \n\nThis partnership, branded as OP [Succinct](https://iq.wiki/wiki/succinct), is intended to enable faster withdrawal finality and a multi-proof architecture that OP Stack chains can adopt. [\\[15\\]](#cite-id-7JoECmA8PGprReMs)​\n\n### Block Storage\n\nOptimism utilizes a specific smart contract on [Ethereum](https://iq.wiki/wiki/ethereum) called the CanonicalTransactionChain (CTC) to store all of its blocks. The CTC maintains a list of blocks in an append-only manner, ensuring that new blocks can only be added to the existing list. The CTC's code includes mechanisms that prevent the alteration of the current list of blocks by subsequent transactions on the [Ethereum](https://iq.wiki/wiki/ethereum) network. [\\[3\\]](#cite-id-uuo6jj5qs6)​\n\n### Block Production\n\nThe \"sequencer\" is the entity responsible for managing block production on Optimism. Its role is to contribute to the network by providing the following functions: [\\[3\\]](#cite-id-uuo6jj5qs6)​\n\n1. Facilitating instant transaction confirmations and updates to the network's state.2. Constructing and executing layer-two blocks, which enhance scalability and efficiency.3. Submitting user transactions to the underlying layer-one [Ethereum](https://iq.wiki/wiki/ethereum) network.\n\nUnlike traditional systems with a mempool, the sequencer operates differently. Transactions are accepted or rejected immediately upon receipt, following the order in which they are received. When a transaction is sent, the sequencer verifies its validity (including whether it includes a sufficient fee) and incorporates it into the local state as a pending block. These pending blocks are then grouped together and periodically transmitted to the [Ethereum](https://iq.wiki/wiki/ethereum) network for finalization. [\\[3\\]](#cite-id-uuo6jj5qs6)​\n\nThe primary objective of this batching process is to reduce overall transaction fees by distributing certain fixed costs across all the transactions within a single batch. [\\[3\\]](#cite-id-uuo6jj5qs6)​\n\n### Block Execution\n\nOptimism nodes operate by directly downloading blocks from the CTC (Commitment To Compliance) append-only contract. These nodes consist of two key components: the [Ethereum](https://iq.wiki/wiki/ethereum) Data Indexer and the Optimism Client Software. [\\[3\\]](#cite-id-uuo6jj5qs6)​\n\nThe [Ethereum](https://iq.wiki/wiki/ethereum) Data Indexer is specifically designed to reconstruct the Optimism blockchain by retrieving blocks published to the CTC contract. It serves as the data transport layer responsible for this task. [\\[3\\]](#cite-id-uuo6jj5qs6)​\n\nThe Optimism Client Software closely resembles [Geth](https://iq.wiki/wiki/geth), which is a popular client implementation for [Ethereum](https://iq.wiki/wiki/ethereum). This similarity in design ensures that Optimism aligns closely with [Ethereum](https://iq.wiki/wiki/ethereum)'s structure. Both Optimism and [Ethereum](https://iq.wiki/wiki/ethereum) utilize the same [Ethereum](https://iq.wiki/wiki/ethereum) Virtual Machine (EVM), share a common account and state structure, and employ the same gas metering mechanism and fee schedule. [\\[3\\]](#cite-id-uuo6jj5qs6)​\n\n### Fault Proofs\n\nWhen utilizing an Optimistic Rollup, the process involves directly publishing state commitments to the [Ethereum](https://iq.wiki/wiki/ethereum) network without the need for requesting proof of their validity. However, in the event of a challenge to a state commitment, fault proofs are requested. If the challenge is successful, the challenged state commitment is subsequently removed and eventually replaced by another valid commitment. [\\[3\\]](#cite-id-uuo6jj5qs6)​\n\n## Superchain\n\nThe Optimism Superchain is a unified network of chains built utilizing the OP Stack. It merges Optimism mainnet and other L2 chains, known as OP Chains, into a single network of OP Chains. [\\[7\\]](#cite-id-nr5slhacvfb)​[\\[8\\]](#cite-id-tjyp4ckwmcr)​\n\n### OP Stack\n\nThe OP Stack introduces an architectural framework dedicated to creating Layer 2 chains. Its main objective involves modularizing all aspects of Layer 2 into standardized open-source modules, catering to various Layer 2 chains. The OP Stack develops an open-source code library containing standardized modules that facilitate the construction of Layer 2s. This enables anyone to easily set up a Layer 2 chain using these resources. [\\[8\\]](#cite-id-tjyp4ckwmcr)​\n\n[YOUTUBE@VID](HiU-g8XHi5s)\n\n### Ecosystem Partnerships and Chain Deployments\n\nOn May 4, 2026, [Dunamu](https://iq.wiki/wiki/dunamu) (operator of [Upbit](https://iq.wiki/wiki/upbit)) signed an MoU with The Optimism Foundation to collaborate on GIWA Chain, an OP Stack-based [Ethereum](https://iq.wiki/wiki/ethereum) [Layer 2](https://iq.wiki/wiki/layer-2). \n\nGIWA is live on testnet and intends to be the first chain to operate under the OP Enterprise Self Managed tier, where the operator runs the primary sequencer while the Foundation provides assurance, monitoring, engineering support, and a backup sequencer. [\\[16\\]](#cite-id-5JYLqd9tn7DNfA2D)​\n\nThe OP Stack and Superchain continue to be adopted by multiple chains and enterprises, with Optimism noting that the OP Stack powers 50+ chains and that the ecosystem processed over six billion transactions in 2025. [\\[13\\]](#cite-id-HcIDO5RtlsAEl8Q6) [\\[16\\]](#cite-id-5JYLqd9tn7DNfA2D)​\n\n### Bedrock Hard Fork\n\nIn June 2023, Optimism completed its Bedrock upgrade, moving closer towards becoming a Superchain. The upgrade aimed to improve the functionality of the chain by cutting deposit-confirmation times from 10 minutes to 1 minute, and lowering gas fees by 40%. \n\nBedrock also is supposed to improve proof modularity for its OP Stack, which is an open-source platform for developers where they can build customizable blockchains with Optimism. \n\nThe improvements to the OP stack mean that both validity proofs and fault proofs can be used. In addition, Bedrock has made Optimism into a multi-client ecosystem, meaning there would be at least two options for the client software used to run the network.[\\[12\\]](#cite-id-unbs0pysegl)​\n\nBedrock remains the basis for OP Stack chains, with subsequent improvements—such as Pectra integration and ongoing proof modularity work—layered on since 2023. [\\[12\\]](#cite-id-unbs0pysegl) [\\[14\\]](#cite-id-p5Lrl4gcLbS6FPXY)​\n\n## OP Token\n\nOn May 2023, Optimism introduced its OP token, which was made available through an airdrop to a total of 231,000 eligible addresses. The airdrop allowed these addresses to claim 214 million OP tokens at no cost. This distribution accounts for 5% of the overall token supply, which amounts to 4.29 billion tokens. [\\[2\\]](#cite-id-k7fjdt7tpmm)​\n\nHolders of the OP token gain participation rights within The Optimism Collective, which consists of two governance tiers: Token House and Citizens' House. While Token House is currently operational and oversees technical decisions concerning Optimism, the role of Citizens' House involves governing decisions related to funding public goods. During its initial stages, Optimism itself raised funds on [Gitcoin](https://iq.wiki/wiki/gitcoin), a prominent platform for funding public goods. [\\[2\\]](#cite-id-k7fjdt7tpmm)​\n\nGovernance continues to operate via the Optimism Collective, including ongoing rounds of Retroactive Public Goods Funding (RetroPGF).\n\n### Tokenomics\n\nOut of the scheduled total supply of 4.29 billion tokens, 20% was allocated to retroactive public goods funding, 17% to investors, 19% to core contributors, and 25% to the ecosystem fund. The remaining 19% consisted of airdrops, with 5% being designated for the initial airdrop. The remaining 14% was set aside for future airdrops. [\\[4\\]](#cite-id-5acrsx82fe)​\n\n## The Optimism Foundation\n\nThe Optimism Foundation is a nonprofit organization dedicated to foster the growth and development of the Optimism Collective. [\\[9\\]](#cite-id-hlvmt0zqhej)​\n\n> \"*We pledge to uphold the values of Ethereum by producing infrastructure that promotes the growth and sustainability of public goods. \" - Philosophy of the Optimism Foundation*\n\n## The Optimism Collective\n\nThe Optimism Collective is a group of companies, communities, and individuals collaborating to incentivize public goods and establish a sustainable future for the [Ethereum](https://iq.wiki/wiki/ethereum) ecosystem. The governance is composed of two houses: the Token House and the Citizens’ House. [\\[10\\]](#cite-id-ffvkvihkqb)​\n\n### Token House\n\nThe Token House consists of OP holders who are responsible for submitting, discussing, and voting on diverse types of Optimism Collective governance proposals. OP holders have the option to vote directly or delegate their voting power to a third party known as \"delegates.\" These delegates can represent multiple OP holders during the voting process. [\\[11\\]](#cite-id-c2zrvf721um)​\n\n### Citizens’ House\n\nThe Citizens' House comprises Optimism citizens with the responsibility of allocating rewards to public goods providers through a process known as \"retroactive public goods funding\" (RetroPGF). The selection of citizens occurs via entries in the AttestationStation smart contract, and their main role is to ensure fair compensation for contributions made by public goods providers. [\\[11\\]](#cite-id-c2zrvf721um)​\n\nRetroPGF represents an innovative approach to funding public goods that have already been delivered. Instead of relying on upfront grants or donations, RetroPGF empowers citizens to allocate rewards based on the actual value that public goods providers have contributed to the community. This incentive encourages providers to continue creating value, as they know their efforts will be duly rewarded. [\\[11\\]](#cite-id-c2zrvf721um)​\n\n## Funding\n\nOptimism secured $150 million in a Series B funding round. The funding was led by crypto investors Paradigm, headquartered in San Francisco, and [Andreessen Horowitz](https://iq.wiki/wiki/andreessen-horowitz), resulting in a valuation of Optimism at $1.65 billion. [\\[1\\]](#cite-id-72itr0q6kfp)  [\\[6\\]](#cite-id-ob7lkqcfrl9) \n\n## Recent Partnerships and Initiatives\n\n* OP Enterprise was announced as a production-grade, enterprise offering for OP Stack deployments, with tiers for OP Mainnet, Self Managed, and Fully Managed chains, enterprise SLAs, and migration support. [\\[13\\]](#cite-id-HcIDO5RtlsAEl8Q6)\n* Optimism partnered with [Succinct](https://iq.wiki/wiki/succinct) as the first preferred ZK proving provider for the Superchain, introducing validity proofs on the OP Stack starting with OP [Mainnet](https://iq.wiki/wiki/mainnet) (OP [Succinct](https://iq.wiki/wiki/succinct)). [\\[15\\]](#cite-id-7JoECmA8PGprReMs)\n* [Dunamu](https://iq.wiki/wiki/dunamu)/Upbit signed an MoU with The Optimism Foundation related to GIWA Chain, an OP Stack-based L2 planned to operate on the OP Enterprise Self Managed tier. [\\[16\\]](#cite-id-5JYLqd9tn7DNfA2D)\n\n## Worldcoin\n\nIn July 2023, World ID, the identity protocol of [Worldcoin](https://iq.wiki/wiki/worldcoin-wld), was announced to be available on OP [Mainnet](https://iq.wiki/wiki/mainnet). TFH's World App, the first wallet that enabled transactions using Worldcoin, digital assets, and stablecoins, was also migrated to OP [Mainnet](https://iq.wiki/wiki/mainnet). After the announcement of Worldcoin, transactions on the Optimism network surpassed [Arbitrum](https://iq.wiki/wiki/arbitrum)'s daily transactions. 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