- Optimistic Rollups, a layer-2 scaling solution for Ethereum, is nearing its launch on mainnet.
- According to Kain Warwick, the scaling solution “will melt faces”.
Kain Warwick, the founder of the Ethereum based DeFi protocol Synthetix has caused hype on Ethereum’s community. Warwick said the Optimistic Rollups are in their final stages of development and have the potential to become the preferred option for investors on Ethereum DeFi. Warwick said:
Optimistic Ethereum will be the DeFi chain over the next 12-24 months. Nothing is even close. Mainnet is coming and it’s going to melt your f**king faces. @clembalestrat should have a sneak peak for you all very soon…
Optimistic Rollups (OR) are a second layer scaling solution that does not operate on Ethereum’s base layer, but “on top” of it. This enables running smart contracts at scale while still being secured by Ethereum. These constructions resemble Plasma, but trade the almost infinite scalability of Plasma to run an EVM compatible Virtual Machine called OVM (Optimistic Virtual Machine) which enables ORs to run anything Ethereum can.
‘Optimistic’ is used because aggregators publish only the bare minimum information needed with no proofs, assuming the aggregators run without commiting frauds, and only providing proofs in case of fraud. ‘Rollups’ is used because transactions are commited to main chain in bundles (that is, they are rolled-up).
No more congestion on Ethereum?
The solution has been developed by the Optimistic team who deployed a testnet on September 25 this year. Synthetix joined Optimism for the testnet, launching a bare-bones version of its protocol on the testnet for retail users with a small balance. Around 200,000 SNX were delivered as rewards.
The testnet has received a massive positive feedback from users on Ethereum’s DeFi. Some indicate that they have been able to reduce transaction fees significantly using Synthetix. Others have compared the introduction of the Optimistic Rollups to switching from dial-up to broadband internet. As part of the testnet announcement, the Synthetix team stated:
This is a huge milestone for Synthetix, Optimistic Ethereum, and indeed the entire Ethereum space. Optimistic Ethereum is the only generalised Layer 2 solution for Ethereum, ‘generalised’ meaning it doesn’t require specific functionality to be built to support existing L1 protocols. Launching SNX staking on OE is a crucial step towards full scalability for the burgeoning DeFi ecosystem, truly allowing anyone around the world access to open financial infrastructure.
The solution has caused even more hype since a member of the Optimistic team revealed George Hotz’s involvement in the project. Hotz is a security hacker known for developing iOS jailbreaks, reverse engineering the PlayStation 3 when he was just 17 years old. In the Optimistic Rollups project, Hotz was responsible for the development of a new compiler with the Optimistic Virtual Machine.
As reported by CNF, Ethereum inventor Vitalik Buterin stated that second-layer solutions such as ORs are Ethereum’s future, especially for DeFi applications. Buterin added that in this sector they have the greatest incentive to economize transactions on the network, however, they have to be supported in order for their development to progress.