Ivan on Tech Academy provides latest insights and reports about the blockchain industry.
Optimism’s Optimistic Virtual Machine (OVM) potentially represents a monumental leap forward for Layer 2 solutions. In this article, we’ll take a closer look at what Layer 2 solutions are, why they’re so important, and why Optimism and their Optimistic Virtual Machine could constitute such an important breakthrough for Ethereum. In essence, the OVM environment theoretically allows developers to move their smart contracts onto this quicker and less expensive solution with only a few lines of code.
That's good news for anyone involved in Ethereum. But before we get into everything it does, let's look at why the Optimistic Virtual Machine (OVM) is even necessary.
First off, there has never been more usage and excitement surrounding Ethereum than at this moment in its history. Cumulative transaction fees surpassed Bitcoin in 2020, Ethereum gas fees have seen historic highs recently, and presently, Ethereum is on top regarding daily transaction fee revenue. Even ...
Scalability has been an issue related to the Ethereum blockchain for years, so the next time you hear terms like Sidechains, Plasma, Channels, or Rollups, you’ll no longer have to wonder what they mean. These are all proposed solutions to help Ethereum scale. Moreover, so-called Layer-2 solutions are widely seen as potentially holding the keys to helping Ethereum to scale and reduce Ethereum gas fees.
After all, Ethereum's congestion and high fees attest to it becoming a victim of its own success. Sections of its ecosystem like DEXs and Yield Farming have become inaccessible to the average user who can only afford moderate gas fees.
So, what are Ethereum developers doing about all this? Well, a lot actually, and we're going to be touching on some of the most popular proposed solutions in this article.
Basically, there are two ways to scale a blockchain. One is to work on the main chain itself to improve transaction capacity. That is what Ethereum 2.0 is all...