Coinbase’s base layer 2 on optimism, also known as Optimistic Ethereum, is a layer 2 protocol and smart contract platform that aims to enable low-cost and near-instantaneous Ethereum transactions [3]. Here are the 5 takeaways:
- Exchanges moving from layer 1s to layer 2s: Coinbase’s non-custodial wallet service has started offering support for Optimistic Ethereum’s testnet [2].
- No token: There is currently no token associated with Optimistic Ethereum [1].
- Wall Street not getting it: There are concerns that Wall Street may not understand the importance of layer 2 solutions like Optimistic Ethereum and may be slow to adopt them [1].
- Developer competition: There is currently intense competition among developers to create layer 2 solutions that are faster and cheaper than existing solutions [1].
- On-chain know-your-customer (KYC): There is no mention of on-chain KYC for Optimistic Ethereum in the provided search results.
On-chain KYC can be seen as a good thing for regulators and the deep pockets of institutions, as it allows for greater transparency and accountability in financial transactions. However, some argue that on-chain KYC goes against the ethos of cryptocurrency and undermines the privacy and anonymity that many people value in crypto transactions. Furthermore, implementing on-chain KYC can create a single point of failure and increase the risk of data breaches and hacking attacks [3].
References:
[1] “Layer 2 solutions are an integral part of Ethereum’s scaling prospects, as they provide significantly faster and cheaper transactions to users while still benefiting from the security of the Ethereum mainnet.” URL: https://coincodex.com/article/14273/is-layer-2-solution-optimism-about-to-launch-its-own-token-rumors-circulate-in-crypto-community/
[2] “Coinbase’s non-custodial wallet service will today begin offering support for Ethereum scaling project Optimistic Ethereum’s testnet, according to an announcement by Optimism, the startup…” URL: https://uk.news.yahoo.com/coinbase-wallet-support-optimism-layer-180923553.html
[3] “Optimism is a layer two protocol and smart contract platform that aims to enable low-cost and near-instantaneous Ethereum transactions. The OP cryptocurrency powers the Token House, which will be a division of the Optimism Collective alongside the Citizens House.” URL: https://www.coinbase.com/price/optimism
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