Tangem Update: adding Optimism network

We are constantly increasing the list of the supported networks. We have added the Optimism network for the new app release.

Optimism is an Ethereum L2 blockchain (layer 2 protocol), built on the top of the Ethereum mainnet. Its main purpose is to provide users with fast and inexpensive transactions, and to solve the scalability problem of the Ethereum network.

Optimism processes transactions outside of the mainnet using Optimistic Rollups technology which reduces transaction fees tenfold when compared to the Ethereum network’s first level. It also provides the ability to use any smart contracts and dApps designed for Ethereum on the Layer 2 network. Once processed, the transactions are then submitted in large batches to the mainnet.

How the Optimism network works

Optimism uses optimistic rollups as a scaling solution. The idea is that transactions are processed in a Layer 2 chain, smart contracts are also executed in a Layer 2, while the Ethereum mainnet generates blocks and provides security.

Besides, all transactions are compressed and batched. As a result, finalizing multiple transactions simultaneously improves network efficiency and increases the number of transactions that can be executed. The Optimism can scale up to 200-2,000 transactions per second compared to 30 transactions per second on the Ethereum network.

Sequencers, special nodes,  batch, verify and then submit transactions to L1 of the Ethereum network.

The Optimism network uses its own virtual machine (OVM), which enables smart contracts and dApps developed for Ethereum in the Level 2 network in unchanged form.

Optimism ecosystem

Optimism is a foundation for more than 60 dApps: crosschain bridges and other decentralized projects. 
Optimism supports a large number of popular cryptocurrency wallets. 
USDT, USDC, DAI and other stablecoins are issued on the Optimism .

According to the DefiLlama service, the top 5 apps in terms of blocked liquidity (TVL) based on Optimism are as follows:

  • Aave (landing platform);
  • Sinthetix (derivatives platform);
  • Uniswap, Velodrome (DEX);
  • PoolTogether (gaming platform).

How to use Optimism

To use Optimism, you’ll have to deposit your ETH or ERC-20 tokens to the Optimism token bridge. This allows you to transact on Ethereum through Optimism. You can convert your tokens back to the Ethereum mainnet once you’re finished.

Once you’ve deposited funds on Optimism, you can use them within any supported dApps. Uniswap, for instance, allows you to trade through Optimism to save on fees.