How does Optimism Work?

Modified on Thu, 16 Feb 2023 at 05:29 PM

Simply explained, Optimism and most of the layer-2 networks are designed to reduce the workload from the main network (Layer-1) by processing numerous small transactions before compressing them into one transaction and sending it to be confirmed and recorded on the main network. This is why doing transactions on layer-2 offer more speed and lower gas fee when compared to layer-1.


In addition, Optimism uses the system called Optimistic Rollups (ORs) to confirm transactions. As the name suggests this system will consider all transactions on the network to be valid and trustworthy. This way the data package can be smaller, meaning more transactions can be processed.


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