What is Optimism (OP) and How Does It Work?

Optimism (OP) is one of Ethereum’s largest scaling solutions: It is a blockchain that was built as a layer-two for Ethereum. The protocol benefits from the security of the Ethereum mainnet and helps scale the Ethereum ecosystem by using optimistic rollups. (This means that transactions are bundled, ‘trustlessly’ recorded on Optimism, and ultimately ‘secured’ on Ethereum. 


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Optimism was founded in 2019. It was built by Ethereum developers to process their ecosystem transactions in batches using rollups, with a view to increasing speed and throughput.

The project is led by the Optimism Foundation, a nonprofit organization dedicated to growing the Optimism ecosystem. (Optimism aims to become a fully decentralized public good that is not profit-oriented, and is completely funded by donations and grants. It has pledged to produce infrastructure that promotes the growth and sustainability of public goods.

Optimism has raised a total funding of $175M from institutional and venture capital investors over 2 rounds. Notably, a16z made their first investment in Optimism on Feb 24, 2021 in its Series A round, and Paradigm invested in Optimism on Mar 16, 2022 in its Series B round.

Optimism first launched its OP token to the public via an Airdrop on May 31, 2022, when 231,000 addresses were eligible to claim 214 million OP tokens for free. (Visit Optimism Cummunity for more information on token distribution.) Roughly 25% of max OP token supply are currently in circulation. (Early investors hold 17% of total supply.) 

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Optimism relies on "optimistic rollups," a technique streamlining off-chain transaction processing to reduce fees and enhance network efficiency:  

1. Multiple transactions from Ethereum's Layer 1 are grouped into a single transaction on Optimism's Layer 2, with fees shared among users.  
2. Adopting an optimistic stance, transactions are initially assumed valid, computations are delayed until necessary, and fraud-proofing is employed only if/when suspicions arise.  
3. This differs from zero-knowledge rollups (zk rollups), which prove validity before reaching Ethereum's blockchain, often incurring higher costs. Therefore--  
4. Optimistic rollups offer a more economical solution for transactions. 

OP is the native utility token of the Optimism network. It is used for governance, paying transaction fees, and participating in the network’s consensus mechanism. The OP token grants holders the right to participate in The Optimism Collective, a dual-tier governance system consisting of Token House and Citizens’ House. While Citizens’ House is scheduled to launch later in 2022, Token House is already operational and oversees technical decisions concerning Optimism, including software upgrades. On the other hand, Citizens’ House is responsible for making decisions related to funding public goods. In its initial phases, Optimism secured funding through Gitcoin, a prominent platform dedicated to funding public goods.

Crypto disclosure 

Crypto asset statement

• Optimism operates as an Ethereum Layer 2 scaling solution using Optimistic Rollups.
• Optimistic Rollups bundle a large number of transactions into a single data point off of the Ethereum blockchain, significantly reducing congestion and fees.
• Optimistic Rollups allow the network to process transactions more quickly and at a lower cost than the Ethereum mainnet (Layer 1), while—
• Still maintaining a relatively high degree of security and decentralization. 

Start Trading Optimism (OP) on Ndax

To buy Optimism (OP) in Canada, you can set up an account on a cryptocurrency trading platform such as Ndax and buy OP directly with the Canadian dollar.

You can also buy Optimism in Canada using a peer-to-peer trade. However, using platforms such as Ndax will allow for safer, easier, faster, and more affordable transactions.

👉 How to buy Optimism in Canada?

Storing your Optimism (OP)

It is highly recommended that you store Optimism (OP) in a cryptocurrency hardware wallet. However, at Ndax we have all the security measures in place to allow you to safely store your cryptocurrency on our platform. See Ndax Security. For cold wallets, check out Ledger or Trezor for your hardware wallet needs.

Optimism (OP) stands as a testament to the innovative spirit of the cryptocurrency community, showcasing the potential of blockchain technology to revolutionize not just finance, but the very fabric of digital interaction. As a leading Ethereum Layer 2 scaling solution, Optimism has successfully addressed critical challenges in the ecosystem, offering a more efficient, cost-effective, and user-friendly platform. Its commitment to decentralization and public goods funding reflects a forward-thinking approach that aligns with the ethos of the crypto space—empowering users and fostering a sustainable environment for growth.

The journey of Optimism is not just about technological advancement; it's about building a community and a platform that embodies the principles of open collaboration and shared success. By participating in The Optimism Collective, users are not merely investing in a cryptocurrency; they are becoming part of a movement that champions transparency, security, and inclusivity. As Optimism continues to evolve and expand its capabilities, it invites everyone to explore its offerings, engage with its vibrant community, and contribute to a future where technology serves the greater good. Embracing Optimism means joining a collective endeavor to shape a more optimistic and equitable digital world.

Experience seamless transactions, top-notch security, and unparalleled support. Invest in Optimism (OP) on Ndax Today.