Optimism Layer-2 Is Upgrading: Is This What Bulls Want?
Optimism, one of the most popular Ethereum layer-2 platforms,
will release the Bedrock upgrade on June 6, 2023.
Optimism Upgrading Via Bedrock In Early June The layer-2 provider
on Ethereum says the release is “highly anticipated” by the
community and will introduce some changes that make the protocol
even more scalable, reducing transaction fees. Related Reading:
Arbitrum, Optimism, And Polygon: Which Is The Ultimate Ethereum L2?
As it is, Optimism offers an off-chain, general-purpose platform
where users can deploy smart contracts and launch decentralized
applications (DApps) in a low-cost, highly scalable, and secure
environment. Optimism uses roll-ups and bundles transactions before
confirming them on the Ethereum mainnet. This move relieves the
mainnet, helping reduce fees by re-routing demand to an off-chain
solution. According to Optimism, Bedrock will be a hard fork. It
means validators will have to update to the latest version.
Optimism’s documentation reads that “the network will retain the
same chain ID, transaction history, and state. The first block of
the new network will be the last block of the old network +1.”
These changes that come with the Bedrock hard fork will improve
scalability, usability, and security. For instance, the
developer of the layer-2 protocol says there will be better
Ethereum Virtual Machine (EVM) equivalence since, even after the
upgrade, Optimism will remain compatible with the base layer, that
is, Ethereum. Accordingly, users will continue deploying smart
contracts as before the upgrade. The Bedrock upgrade will
introduce a new two-step withdrawal process to the Optimism Mainnet
bridge that will improve its security & make exploits much more
difficult One of the architects of two-step withdrawals, @vex_0x,
explains how⬇️https://t.co/qs6Dtsz2nO — OP Labs (@OPLabsPBC) March
22, 2023 Moreover, Bedrock introduces a new fee structure that
makes fees more predictable and efficient. Overly, developers
expect transfer or smart contracts deployment fees to drop.
Presently, L2fees data shows that simple transfers on Optimism cost
$0.30. Meanwhile, swapping tokens will cost $0.45. On the security
angle, Bedrock introduces a 2-step withdrawal process and a more
robust sequencer. With a better sequencer, developers hope user
funds will be better protected. At the same time, there will be
better usability with the introduction of the Optimism Portal,
allowing for easy cross-domain messaging. OP Prices Down 50% From
Q1 2023 Highs, Will Bulls Flow Back? Despite all these changes, it
remains to be seen whether OP, the native token of Optimism, will
rise. As of writing on May 16, the token is down nearly 50% from
February 2023 high. However, considering gains in Q1 2023
formation, the OP uptrend remains. Still, traders need more
signals before committing. In recent days, OP has been trending
lower, breaking below the critical support level in early May.
Whether OP bears will press on will be seen in the sessions ahead.
Even so, what’s clear is that OP prices have been stagnating,
finding support at 1.64. Related Reading: OP Plummets 7% As
Optimism Postpones Hardfork Ahead of the June 6 Bedrock upgrade, OP
prices could recover, shaking off the bears of May, and align with
the primary trend set in motion in Q1 2023. Feature Image From
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