Bitcoin has achieved a remarkable milestone, surpassing a market value of $107.8K.

Bitcoin has achieved a remarkable milestone, surpassing a market value of $107.8K. This surge can be attributed to a combination of persistent disbelief among retail investors and aggressive accumulation by institutional players. Recent excitement has been further fueled by Donald Trump's pro-crypto stance. His announcement to appoint 

 has been met with enthusiasm, especially since it signals the removal of Gary Gensler, who has often been viewed as an obstacle to crypto growth. As Trump reiterated his plans for a U.S. strategic Bitcoin reserve, the sentiment in the crypto community has grown increasingly positive, suggesting a potential shift in regulatory dynamics that may benefit the market.

Meanwhile, the number of wallets holding between 100 to 1,000 BTC has risen significantly. In the past month, there’s been a net increase of 1,289 such wallets on the Bitcoin network, representing 9% growth in a short time frame. Moreover, these wallets have collectively added approximately 214,900 BTC to their holdings, marking a 5.1% increase in total assets.

Institutional Influence and MicroStrategy's Role

The current Bitcoin rally differs from previous ones, being primarily institutional-driven rather than retail-focused. MicroStrategy’s Executive Chairman, Michael Saylor, has made significant Bitcoin purchases, recently acquiring over 36,900 BTC. This has led to mixed reactions on social media: while many praise Saylor as a visionary, critics express concerns about the company's reliance on borrowed funds for these acquisitions. The market's response to MicroStrategy's buying spree underscores its influence on Bitcoin's perception as a legitimate investment. Additionally, rising metrics, such as daily active addresses and an increase in higher-tier Bitcoin wallets, indicate growing utility and institutional interest in Bitcoin, suggesting a more sustainable path for this bull market.

Chainlink has emerged as a key player in the crypto space, achieving a 51% increase in December 2024. Its advancements in the CCIP have attracted traditional financial institutions, further legitimizing its technology. The launch of Chainlink’s new staking program has not only increased user engagement, but has also reduced selling pressure. Meanwhile, the MOVE token, part of The Movement Network, experienced an impressive 84% rise shortly after its debut, driven by airdrop events and exchange listings. Despite concerns about potential sell-offs, MOVE’s innovative approach positions it well for future growth in the Ethereum scaling landscape.

Advanced

Intro to Santiment.png

Bitcoin Tests New ATH as Wallets Holding Bitcoin Surge to New Highs; LINK and MOVE Outperform

Learn about peaq network, a Layer 1 blockchain purposely built and optimized for dePIN and RWA.

Decentralized physical infrastructure networks (DePINs)

 are currently among the hottest sectors in the crypto space. peaq, a 

 blockchain purposely built and optimized specifically for these markets, aims to power a global infrastructure revolution using DePIN technology.

This article introduces you to the peaq network and the PEAQ token, and explores why this L1 chain is so popular among real-world asset and 

A decentralized physical infrastructure network (DePIN) is a network that uses blockchain technology to build and operate real-world infrastructures with decentralized governance and ownership. DePIN stands in sharp contrast to the traditional model, in which centralized entities manage their ecosystems with complete control.

DePINs take a community-driven approach and use crypto incentives to expand and maintain their infrastructures. This significantly reduces up-front investments for these networks, and empowers users with the ability to set up their own devices and earn tokens as providers. DePIN leverages this decentralized and distributed architecture to eliminate single points of failure (SPOFs) and enhance the security of the infrastructure.

Some of the most notable DePIN projects are as follows:

 is a high-performance L1 blockchain purposely built and optimized for DePINs and 

. Offering a wide range of tools for projects, over 50 decentralized DePINs in 21 industries are developing on the peaq chain. As the world's largest and fastest-growing DePIN ecosystem, peaq network hosts more than 3 million machines, vehicles, robots and devices and accounts for over $1 billion worth of total value in DePIN devices.

peaq network was co-founded by Max Thake, Leonard Dorlöchter and Till Wendler, bringing together their extensive expertise and experience in blockchain, decentralized networks and entrepreneurship.

Thake, a writer and entrepreneur, excels at simplifying complex technology and using this approach to solve problems. Dorlöchter, active in the blockchain space since 2015, is passionate about decentralization and self-sovereignty and is a member of the 

. Wendler has a strong background in tech startups and decentralized systems, which he leverages to navigate the complexities of the 

The trio, together with other team members, have dedicated their efforts to enable a more inclusive, transparent and equitable world through the advent of 

In March 2024, peaq raised $15 million in a round led by Borderless Capital and Generative Ventures. Additionally, the project secured $6 million and $2.5 million of funding from investors in June 2022 and June 2021, respectively, and participants contributed nearly $20 million to peaq network's public sale in May 2024, bringing the total funds raised to an impressive $43.48 million.

Besides Borderless Capital and Generative Ventures, notable investors behind peaq network include Animoca Brands, CMCC Global, The Spartan Group, DWF Labs, Fundamental Labs, Moonrock Capital, HashKey Capital and GSR.

peaq's modular DePIN functions are designed to empower developers to build next-generation decentralized physical networks. DePINs and 

 (DApps) can leverage these ready-to-use functions to equip their ecosystems with essential core functionalities. These include self-sovereign machine IDs, data verification, role-based access control, data storage, autonomous 

, machine payment processing and data indexing.

Modular DePIN functions work as building blocks for decentralized physical infrastructure networks, enabling them to explore synergies with peers and expand their demand sides. They’re available via the peaq SDK (software development kit) in JavaScript, allowing the seamless deployment of modules with approximately 15 lines of code. With peaq, developers can also enjoy increased flexibility and convenience with Wasm and 

peaq network's fast-growing ecosystem consists of over 50 DePINs in 21 industries, including energy, mobility and telecom. Some of the top DePIN and RWA projects building on peaq’s purpose-built L1 chain include :

In terms of use cases, peaq provides a wide range of utility for enterprises, ranging from mobility and connectivity to 3D printing, cloud gaming and drone delivery.

Practical examples of peaq network uses include co-creating the standards and infrastructure for the future of mobility under the 

. The project has an overall size of more than €20 million ($21 million) and includes participants like Bosch, Airbus, Continental, 

 in its car-sharing fleet to the peaq ecosystem, enabling users to invest in them via the web3 car-sharing app and earn rewards from rides they provide.

peaq network is powered by its native PEAQ token, which was launched on Nov 12, 2024 alongside the peaq blockchain's mainnet. The cryptocurrency's key utilities for users include the following:

With no cap on its maximum supply, PEAQ's total supply at genesis stood at 4.2 billion tokens, with an initial inflation rate of 3.5% that will decrease annually by 10% and stabilize once the network reaches 1% inflation. Currently, 4.212 billion PEAQ is circulating in the market. You can find out more about the token's genesis allocation 

peaq's network of DePIN and RWA projects is expanding at a rapid pace. Some key statistics and figures in this field are as follows:

With a high-performance, purpose-built Layer 1 blockchain, peaq network powers a fast-growing number of DePIN and RWA projects to power a global infrastructure revolution. Boasting more than $40 million in funding and over 50 DePINs, $25 million managed in tokenized real-world assets and 3 million devices within its ecosystem, the L1 chain already has a solid foundation to realize its vision and achieve its goals.

 via Bybit’s user-friendly and intuitive trading platform as a Perpetual contract? 

Intermediate

peaq.png

Peaq Network: A Layer 1 Blockchain Purpose-Built for DePIN

Rootstock (RBTC) is an EVM- and smart contract–capable Layer 2 sidechain for Bitcoin designed for DeFi use cases.

 (DeFi) sector back in 2017 is firmly associated with the 

 (ETH) blockchain. It was Ethereum that introduced the concept of 

, and the first prominent DeFi protocols were all born on this blockchain. For a while, it seemed like 

 (BTC) stayed away from the emerging DeFi phenomenon. It’s only in the past few years that the Bitcoin DeFi ecosystem, dubbed BTCFi, seemingly started to show the first signs of life. This impression is, however, not entirely correct. As early as January 2018, the first DeFi-focused 

 solution for Bitcoin — the Rootstock (RBTC) sidechain — celebrated its mainnet debut.

Rootstock remains the oldest and longest-running Layer 2 platform for the Bitcoin ecosystem. It’s smart contract-capable and highly compatible with the 

 (EVM). While the platform can support all kinds of 

 (DApps), it specifically focuses on the DeFi niche, with nearly all of its leading apps dedicated to crypto finance use cases. Along with smart contract functionality, Rootstock enjoys the famed security of Bitcoin, thanks to its merged mining with the world's largest chain. The sidechain also features superior scalability and lower transaction fees than Bitcoin’s 

With this combination of benefits, it’s no wonder that the Rootstock sidechain has managed to keep a leading position in the fast-developing BTCFi field all these years.

 (RBTC) is a smart contract–capable Layer 2 sidechain designed for Bitcoin DeFi applications. Rootstock's native cryptocurrency, RBTC, is an asset pegged to BTC at a 1:1 ratio.

 Users can transfer their BTC funds to the sidechain, where their coins are converted to RBTC. From then on, users are free to use the RBTC crypto to make use of Rootstock's extensive ecosystem of DeFi apps and tools. Rootstock represents a major way for Bitcoin holders to enjoy smart contract–powered DeFi applications without having to move their assets and activity to Ethereum or other smart contract chains.

Since the Bitcoin network has virtually no smart contract capabilities, many DeFi-minded BTC holders have to convert their funds to Ether or other smart contract chain coins to enjoy crypto finance opportunities on those blockchains. While Ethereum, 

 (ADA) and other prominent smart contract chains offer a diverse array of DeFi solutions, the problem with converting BTC to these coins is the loss of peg; e.g., by exchanging BTC to ETH, you’re decoupling your funds from the world's largest cryptocurrency, well regarded by many investors as the gold standard in crypto investment.

Rootstock solves this issue by offering a BTC-pegged asset, RBTC, that can be swapped back for BTC at any time and returned to the Bitcoin Layer 1 environment. The platform essentially lets you enjoy a plethora of DeFi opportunities while keeping your overall funds tightly pegged to BTC.

Rootstock features EVM compatibility through its Rootstock virtual machine (RVM). This makes porting Ethereum DApps to the sidechain a breeze. The platform also enjoys the security of Bitcoin through a merged mining procedure, whereby miners can use the hash power contributed to securing the Bitcoin network to simultaneously mine blocks on Rootstock as well.

Rootstock's block production time is just 30 seconds, twenty times as frequent as Bitcoin's 10-minute intervals. This allows for fast and efficient transaction processing. At the same time, to ensure complete security of operations, Rootstock normally requires that each transaction go through a minimum of 12 confirmations, which takes the total time for complete transaction finalization to six minutes.

 difficulty is considerably lower than Bitcoin's, and its network congestion isn't anywhere near the levels of Bitcoin or Ethereum. As a result, gas fees on the chain are notably lower than on Bitcoin and Ethereum, with an average transaction fee of around five cents.

The Rootstock sidechain was first conceptualized in 2015 by a group of Argentinian software engineers from RSK Labs. It was officially launched in January 2018, making it the oldest existing Bitcoin Layer 2 solution. In its earlier years of operation, the platform was known as the RSK blockchain, but rebranded to Rootstock in 2022. The project's co-founders are Diego Gutiérrez Zaldívar, Adriȧn Eidelman, Gabriel Kurman and Sergio Demian Lerner.

Rootstock uses an address system compatible with and similar to Ethereum's, with 40 alphanumeric characters and an account-based model. This differs from the 

 (UTXO) model employed for Bitcoin transactions. Transactions on the sidechain directly modify account balances, similar to Ethereum, rather than adjusting unspent output amounts.

This account-based address system ensures adherence to EVM compatibility and easy accommodation of DApps ported from EVM chains.

, known previously as the RSK virtual machine, is a processing engine used by the sidechain. It's EVM-compatible, allowing developers to easily port and adapt Ethereum smart contracts and DApps to the Rootstock environment. Additionally, developers can use Solidity, the primary programming language used within the Ethereum ecosystem, to build Rootstock-based applications.

The project's team tries to maintain compatibility between RVM and EVM carefully. Around once a year, the Ethereum developer community performs a 

 of the blockchain, upgrading it to a new version. The key goals of these upgrades are to introduce new functionality, address security concerns and improve existing features. If the new features introduced by Ethereum align with the ethos and goals of the Rootstock project, the team initiates a corresponding hard fork upgrade to the sidechain and RVM in order to maintain the snug compatibility between the processing engines of the two chains.

Rootstock's security mechanism is well protected, thanks to 

 with Bitcoin. Like Bitcoin's Layer 1, Rootstock uses the 

 (PoW) block generation procedure. Miners can merge-mine RBTC using the same 

 power they contribute to mining Bitcoin. This provides an excellent way for miners to earn additional crypto income without the need to contribute more computing capacity. Merged mining is also a key way for PoW blockchains to reduce their environmental impact.

Since the average block time on the Rootstock blockchain is only 30 seconds, miners can expect more frequent rewards from their block generation activity. In general, Rootstock's mining difficulty is lower than Bitcoin's, allowing less powerful mining machines to still generate income on the network.

Rootstock's mining rewards are paid out in RBTC, the BTC-pegged asset that we'll cover in more detail later in the article.

 is Rootstock's system to ensure a peg between BTC and RBTC and the secure transfer of assets between the sidechain and Bitcoin Layer 1. The Rootstock PowPeg allows anyone to lock BTC on the Bitcoin chain and get securely issued RBTC on the Rootstock side. PowPeg also facilitates the process of burning RBTC on Rootstock and receiving the requisite amount of BTC on Layer 1.

Rootstock PowPeg uses Bitcoin's PoW to maintain the security and integrity of the peg in conjunction with institutional nodes running specialized 

 devices. PowHSMs securely sign transactions involving the transfer of assets between Rootstock and Bitcoin. The group of nodes running PowHSMs, called the PowPeg Federation, is currently made up of nine reputable organizations in the blockchain sphere — BlockVenture, Luxor, Сollider, Сonstata, Mycointainer, pNetwork, Sovryn, Xapo and RootstockLabs.

Rootstock Smart Bitcoin (RBTC), previously known as RSK Bitcoin, is the platform's main cryptocurrency. RBTC is pegged to BTC at a ratio of 1:1 through the securely enabled PowPeg mechanism covered above. Like BTC on the Bitcoin blockchain, RBTC is used to pay transaction fees and reward miners on the Rootstock network. However, unlike BTC, RBTC can also be used within DApps for functions like collateral provision, lending, borrowing and more.

Given RBTC's peg to BTC, it’s not surprising that its tokenomics borrows some critical parameters from Bitcoin. RBTC's total supply is specified at 21 million, matching the 

The Rootstock platform also has a second token, RIF, primarily designed to support DApps that are part of the 

 (RIF) protocol, a layer built on top of the Rootstock chain for apps designed for staking, lending, payments and other DeFi use cases. There are currently several RIF DApps on Rootstock that can use the RIF token.

 within these DApps. It can also be staked on Rootstock to open up the opportunity to participate in on-platform 

. By staking RIF, you’re issued stRIF tokens, which enable you to participate in governance votes via the 

. This is the platform's primary governance entity, through which community members — users and developers — can influence the future direction and improvements to the sidechain and its ecosystem.

For instance, during the early stages of the DAO's operation, community members can vote on the allocation of ecosystem grants. In the future, decision-making on other initiatives (e.g., rewarding developers contributing to the growth of Rootstock) will be implemented.

RIF is a supply-capped token, with a total and maximum supply of 1 billion. The token's overall supply allocation shares, as outlined in the project's white paper, are as follows:

As a leading Bitcoin sidechain capable of executing smart contracts, Rootstock boasts a thriving ecosystem of DApps, primarily in the DeFi domain. As of mid-December 2024, the total number of applications, utility tools, wallets and other smart contract–enabled solutions on Rootstock stands at close to 180.

One of the leading applications on the chain is Sovryn, a decentralized Bitcoin trading and lending platform. Another popular DeFi app is 

 (AMM) built on the Ethereum blockchain. In addition to a plethora of DeFi apps, Rootstock has solutions for 

The Rootstock Runes Mock Bridge project allows developers to create Rune tokens on the sidechain. Introduced in April 2024, the 

 has opened a way to efficiently create Bitcoin-based fungible tokens by leveraging the blockchain's native UTXO transaction model. Rootstock's Runes Mock Bridge supports the process of creating these tokens by first etching Runes on a Bitcoin, and then mirroring their representations to the sidechain. The replication of Bitcoin-based Runes tokens on Rootstock is enabled via the ERC-1155 token standard. This is a standard utilized on EVM-compatible chains to transfer blockchain assets of both fungible and non-fungible varieties efficiently.

Rootstock Token Bridge is a bridging solution designed to facilitate the transfer of ERC-20 assets between the Rootstock sidechain and Ethereum. Although Rootstock and Ethereum share the same address format and model, sending assets between these chains directly via your wallet may not work. Instead, to transfer assets, you are advised to use the Rootstock Token Bridge, which will convert the transferred tokens to a requisite format.

 projects active on the Rootstock chain. One of these, NFTs2Me, allows you to create NFTs with no coding skills required. The other project, coNFT, is a comprehensive multichain platform that offers users a wide variety of NFT-focused products and services — 

 name service, analytics and more. coNFT has access to data and NFT services across over 100 blockchain platforms.

The oldest Bitcoin sidechain in existence, Rootstock continues to play a key role in the development of Bitcoin-linked DeFi — BTCFi. The platform's EVM compatibility also positions it as a major bridge between the Ethereum and Bitcoin ecosystems — the blockchain environments of the world's two leading cryptocurrencies by market capitalization.

Over the years, Rootstock has accumulated a comprehensive arsenal of DeFi solutions — DEXs, liquidity management apps, 

 platforms, lending and borrowing protocols, NFT utilities and more. At the same time, RBTC's peg to BTC presents a unique way for crypto users to enjoy these DeFi protocols while holding an asset tightly coupled with Bitcoin's market price.

Developers can also enjoy a familiar environment, with the Solidity programming language and an EVM-compatible account model utilized by the sidechain.

Importantly, Rootstock offers efficient transaction processing — supported by its 30-second block intervals — and lower transaction fees than either Ethereum or Bitcoin. With gas fees a major concern for users on both of these Layer 1 chains, Rootstock is a platform that deserves close attention from both DeFi users and developers.

rootstock bitcoin.png

Rootstock (RBTC): Boosting Bitcoin DeFi With Smart Contracts

Dive into World Liberty Financial, a decentralized finance (DeFi) project inspired by Donald Trump, and its native WLFI token.

 (DeFi) project inspired by Donald Trump, the incoming president of the United States. The project aims to provide innovative financial solutions while leveraging the Trump brand's influence. This article will explore the project’s key features, the Trump family's involvement and the utility and tokenomics of the WLFI token.

 is a DeFi project designed to revolutionize modern financial transactions. This project operates on blockchain technology and integrates advanced DeFi tools that allow users to trade, earn and borrow with efficiency. 

 has publicly promoted the launch of World Liberty Financial and its native WLFI token.

On October 16, 2024, Donald Trump posted on X announcing that the project was live. His family members are also significantly involved in this exciting project. Donald Trump Jr. and Eric Trump are at the forefront, working diligently to develop the platform and promote its goals.

Barron Trump, just 18 years old and a freshman at NYU, has taken on the role of “Chief DeFi Visionary.” The Trump family has utilized social media to build interest in World Liberty Financial, asserting that it could transform personal finance management for individuals everywhere. Despite their involvement, the project claims to remain non-political and separate from any political campaign. 

Aside from Donald Trump and his family, there are other people on the team behind this DeFi initiative. The official website lists five co-founders: Chase Herro, Zak Folkman, Steven Witkoff, Zach Witkoff and Alex Witkoff. The project also features notable advisors, including Sandy Peng from Scroll and Luke Pearson from Polychain Capital.

Its primary mission is to empower users by providing them with tools for financial independence. Below are some key features.

World Liberty Financial Holdings has recently captured attention through its 

. The World Liberty Multisig wallet completed $12 million worth of transactions, demonstrating a clear strategy to build a well-rounded cryptocurrency portfolio.

 was 2,631 ETH for $10 million, purchased at $3,801 per token. Ethereum’s smart contract capabilities make it a cornerstone of many DeFi projects, solidifying this as a strategic decision for the platform. The wallet also secured 41,335 LINK for $1 million at $24.20 each. Additionally, $1 million was allocated to purchase 3,357 AAVE at $297.80 per token. AAVE is a leader in DeFi, offering seamless lending and borrowing solutions.

The WLFI token is important in the World Liberty Financial ecosystem. Built as an ERC-20 token, it powers several essential functions on the platform:

The tokenomics of WLFI include a total supply of 100 billion tokens. Below is an outline of its distribution structure:

The launch of the WLFI token has faced significant challenges and has failed to meet its initial sales targets. Investors showed less interest than anticipated, leading to sluggish sales for the World Liberty Financial project. This disappointing start raised concerns about the project's viability in the competitive decentralized finance (DeFi) landscape. Despite the backing of Donald Trump, the token struggled to attract the expected level of investment during its initial offering.

In a surprising turn of events, Justin Sun, the founder of the TRON blockchain, stepped in with a substantial 

. Sun's purchase allowed him to acquire over half of all WLFI tokens sold, positioning him as the largest investor in the project.

World Liberty Financial aims to make a significant impact in the DeFi sector, which has largely underperformed throughout the current bull market. The potential of clearer regulations for the wider crypto industry under the incoming Trump administration has boosted investors’ hopes for a revival of the DeFi space. 

Furthermore, backing from the Trump family has drawn considerable attention to the World Liberty Financial project. However, it’s essential for potential investors to 

 before committing funds to avoid scams and ensure safe engagement with financial projects.

world liberty financial.png

World Liberty Financial: Trump's DeFi Project

Bybit Learn

Altcoins

Blockchain

Optimism is an L2 blockchain designed to scale Ethereum in a simple, secure and flexible way via its optimistic rollup technology. 

Optimism-OP_token_allocations.png

If you're looking for a promising crypto technology to invest in, Optimism stands out as an excellent choice. Its innovative rollup technology has positioned it as a top-tier 

 blockchain that skillfully addresses Ethereum’s scalability challenges. 

This article delves into the intricacies of Optimism and its underlying technology, and sheds light on the prospects it holds for investors of OP tokens.

 is a Layer 2 (L2) scaling solution for Ethereum that’s designed to provide lightning-fast transactions at a fraction of the cost.

 It aims to drive the vision of Ethereum toward achieving decentralization through a transparent and sustainable blockchain for the public good.

As an L2, Optimism is built on top of Ethereum's architecture. Hence, it’s 

–equivalent, and acts as a minimal extension of the main Ethereum layer. In this way, developers and crypto users can benefit from speedy transactions at a low fee while still enjoying the security of Ethereum's architecture. 

Optimism now aims to further enhance its scalability with a platform called 

, consisting of a network of chains built on the 

, which merges its OP Mainnet with other L2 chains. As a Superchain, Optimism aims to create an interoperable and composable ecosystem to simplify the integration of L2s.

How Optimism Solves Scalability Issues on Ethereum

 is considered one of the most secure and decentralized blockchains in the crypto space. However, the chain has faced perennial network congestion challenges and high gas fees, significantly impairing its scalability. L2s such as Optimism have a simple, flexible and user-friendly solution to this issue. 

 the Ethereum blockchain, while taking advantage of Ethereum's infrastructure. During a transaction, Optimism continues to communicate with Ethereum’s 

, ensuring that it still offers similar security and decentralization guarantees. Layer 1 handles security, decentralization and data availability, while Optimism’s Layer 2 handles scaling.

During the process, no changes are made to Layer 1. In a way, Optimism takes away the burden of financial transactions from Ethereum. The removal of this load from Ethereum’s blockchain removes network congestion.

Here are just a few of the benefits that Optimism crypto offers:

 to process transactions in batches, which helps reduce gas fees and network congestion. Rollups can help users save up to 100 times the gas fee, compared to the Layer 1 protocol.

The rollup technology used by Optimism crypto bundles up hundreds of transactions on Ethereum’s Layer 1 into a single transaction. Since there are multiple transactions in a bundle, the gas fee is distributed among all the users. While the rollup is executed on Optimism’s Layer 2, the transaction data is posted to Ethereum’s Layer 1 for processing.

Optimistic rollups are "optimistic" in the sense that every transaction is assumed to be valid on Optimism’s Layer 2, and no computations are performed. If the system suspects fraud, it runs fraud-proofing to verify the transaction.

 upgrade to its OP Stack, presenting multiple improvements to its mainnet such as lowered transaction costs and greater Ethereum equivalence. 

There are mainly two types of rollup solutions on Ethereum: Optimistic rollups and 

. While both rollups move the transactions off-chain to process the data, the method used to verify the transactions makes them different.

Optimistic rollups assume that all transactions are valid, so it doesn’t perform heavy calculations on Layer 2. Instead, the rollup moves the batch to Layer 1 without verifying the validity of a transaction, which leads to a significant improvement in scalability.

If anyone suspects a fraudulent transaction, they can challenge the validity of the batch within a week. Optimistic rollups then run a fraud-proof, which verifies information using the data on Layer 1.

On the other end of the spectrum are ZK-Rollups, which are slightly different as they generate a validity proof for every bundle after moving them to Layer 2. The validity proof is then transferred back to Layer 1 serving as a proxy for the corresponding bundle. Since validation occurs on Optimism’s Layer 2, it helps reduce gas prices and validation times at Layer 1.

Each of these technologies has certain benefits and drawbacks. For instance, an Optimistic rollup is preferred for executing smart contracts. In contrast, a ZK-Rollup is an evolving technology that’s mainly relegated to performing simple transactions.

On the downside, the withdrawal period for Optimistic technology is longer than for ZK-rollups because Optimistic rollups have a "challenge period" to deal with. In contrast, ZK-rollups have very fast withdrawal times, which makes them an ideal solution for apps which require simple payments.

Using Optimism is similar to using Ethereum. You'll need to connect to a 

 and add the Optimism network to use it. Then, fund the wallet with ETH to begin transacting. 

. Like Etherscan, Optimism Explorer contains information such as verified smart contract source code and details of transactions. You'll also find specific features of the OP Mainnet, such as a list of L2-L1 transactions (and vice versa). 

, which lets you swap assets between Optimism and L1 chains like Ethereum. Besides the OP Mainnet Standard bridge to transfer your assets, you can also build a custom bridge for 

 tokens not supported by the Standard bridge.

Optimism vs. Other ETH Layer 2 Scaling Solutions

Irrespective of their size, computer networks can only manage a limited amount of traffic. Once a network becomes popular, it's bound to become congested.

Various Layer 2 networks help Ethereum deal with its scalability issue. These Layer 2 networks attach themselves to Ethereum's core, the Layer 1 chain. Optimism is one such scaling solution, but it's not the only one. 

, because they act like roads connecting to the main Ethereum network.

Following is an overview of the three most popular ETH Layer 2 scaling solutions.

 is an Optimistic rollup technology similar to that of Optimism. It's often said that Arbitrum tweaked the source code of Optimism crypto to develop a distinct Layer 2 scalability solution.

The major difference between Optimism and Arbitrum is how they manage fraud-proofs. Whereas Optimism crypto uses a single-round fraud-proof, Arbitrum utilizes multiple rounds. 

Using a single-round proof, Optimism provides instant verification, as it relies on Ethereum’s Layer 1 to complete the transaction. The transaction is almost instantaneous, but the approach suffers from a higher gas cost. 

In contrast, Arbitrum offers a fine-combing approach to carrying out transactions mainly on Layer 2. Due to a multi-round fraud-proof, the validation takes time, but this helps reduce the gas fee.

 is a DeFi scaling solution. Unlike Optimism, it's a sidechain, not a Layer 2 solution. Sidechains run parallel to Layer 1, and they have a built-in security framework that doesn’t rely on Ethereum. This is quite different from Optimism, which relies on Layer 1 of Ethereum for the security of transactions.

 used by Ethereum, so it's easy to outsource smart contracts to Polygon. The Polygon model relies on MATIC tokens to secure the Polygon Network and pay the transaction fee. Therefore, users need to swap Ether for the protocol's native MATIC token.

While the Polygon model has gained significant attention from the crypto community, some users complain about long transfer times, and the reliance on blockchain security in the hands of few actors.

. The letters “zk” stand for “zero knowledge,” which means that one party can prove to another party that they possess certain information (i.e., transaction details) without revealing what that information is. 

To prove the validity, each batch of transactions is sent to an off-chain prover generating a cryptographic proof, known as a SNARK (which stands for 

). The proof is subsequently posted on Layer 1.

Although zkSync and Optimism are somewhat similar, zkSync uses a somewhat complex methodology to validate a batch of transactions. The model is not conducive to building DApps, and different ZK-Rollup applications can't interact with each other on Layer 2. On a positive note, zkSync ensures both a much higher throughput and lower cost without sacrificing security.

 of the Optimism network. It’s used to power the 

 by creating a valuable and healthy ecosystem for its users. The OP token accrues value for token holders, and rewards contributors and developers while incentivizing its users and community through airdrops. 

An airdrop is a marketing technique used by a project’s management team to raise awareness about a relatively new cryptocurrency. As a result, token holders and potential contributors get free tokens “dropped” to their wallets. 

While the number of tokens distributed to wallets may differ depending on various contributing factors, these airdrop events remain very popular among crypto enthusiasts who wait patiently to receive such rewards.

The Optimism team released the first batch of OP tokens in an airdrop on Jun 1, 2022. According to its white paper, a total of 

 were eligible to claim this initial OP airdrop. 

Despite high demand, this first airdrop wasn’t without its share of drama and controversy. About a week before the initial drop, the Optimism team 

, which caused an uproar from some disqualified users who claimed they’d lost their eligibility despite interacting with the platform. 

Furthermore, one of Optimism’s community members, 0xJohn, 

 that all initial recipients of the OP airdrop who sold their OP tokens should be disqualified from future airdrops. The Optimism governance forum initially brought down the controversial post but later restored it after users protested on Twitter. 

 a surprise airdrop to its users. A total of 11.7 million OP tokens were automatically sent to over 300,000 unique addresses of users who had positively participated in the network’s governance. 

The Optimism team has yet to announce its third round of OP airdrops. However, the community is hopeful that it will happen as stipulated in the project’s white paper. After airdrop #2, 13.73% of the initial total supply is still available for future airdrops. 

Optimism has a total supply of 4,294,967,296 OP tokens. Of these, 19% were set aside for airdrops, of which 5% were released in the first airdrop and approximately 0.27% in the second one. 

According to the official website, OP token allocations are divided into five categories. The lion's share of OP tokens is allocated to the Ecosystem Fund, which represents one-fourth of the entire share.

Below is a brief summation of the overall circulating supply:

 seeks to utilize all the tokens by the end of Year Four. However, the actual unlocked amount depends on various contributing factors.

As of Jul 19, 2023, the price of OP was $1.49, a 53.92% drop from its all-time high (ATH) of $3.22 on Feb 24, 2023, and more than a 250% increase from its all-time low (ATL) of $0.40 on Jun 18, 2022.

Price prediction experts are highly bullish on OP. Leading price forecasting website 

 OP will hit $4.35 in 2025, and achieve a maximum price of $28.33 by 2030. Another prominent platform, DigitalCoinPrice, shares 

, forecasting OP’s price to reach $5.35 in 2025 and $15.59 in 2030. 

Can Optimism reach $100? It could — if it follows a moderate growth trajectory in the future coupled with the continued growth of the Ethereum ecosystem. It’s also one of the best L2 blockchains driving Ethereum’s scalability, and is deemed a favorable asset to hold for long-term investors. 

That said, the above isn’t financial advice and doesn’t guarantee OP’s future price. Always 

 before you buy any token, including Optimism. 

What Is Optimism (OP): The Simple Layer 2 ETH Scaling Solution

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards