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Bedrock Upgrade to Reduce Protocol Costs
Token House, the governing organization of the Layer 2 Optimistic Rollup network Optimism, has approved the upgrade for Optimism Bedrock's Mainnet.
Voting Cycle 11 has concluded. Two votes were brought to the Token House, and both have passed. Not only was this was the Collective’s first onchain vote using the new https://t.co/dmCOuX4B4i—it was also the first Protocol Upgrade.
— Optimism Governance (@OptimismGov) April 6, 2023
According to the protocol, the Bedrock upgrade proposal had the highest voter turnout in OP Governance history. There was 27.945 $OP in favour of the proposal, and 37.217k $OP was against it.
This new proposal concludes voting cycle 11. A total of two votes were taken in Token House, and both were passed.
The Bedrock network upgrade aims to improve performance and security by providing enhanced modularity, simplicity, and Ethereum parity to the L2 network. The Bedrock release seeks to reduce transaction costs, improve throughput characteristics, and sync speeds across the board. There is an estimate that the upgrade can reduce protocol costs/security fees by 47%.
Optimism will be able to withstand time and also adapt to multi-chain environments with this codebase.
During the migration, there will be a pause in deposits and sequencer transaction ingestion, which will effectively result in network downtime, expected to last four hours.
According to Optimism Governance Organization, this upgrade will not require a "regenesis," and historic chain data will remain accessible. Therefore, end-users of Optimism are unlikely to be required to do much other than be aware of that timing.
Increasing Competition With Layer-2 Networks
OP Labs froze the Bedrock code on the Goerli Testnet on March 4 and said it would announce a launch date after the code has been stable for two weeks.
The recent move comes amid increasing competition within Ethereum's Layer 2 (L2) ecosystem, as Matter Labs and Polygon launched zkEVM solutions last month.
According to L2Beat, Optimism holds $1.94 billion in assets following a record-high total value locked (TVL) of $2.15B on March 18. Even with TVL near all-time highs, Optimism represents just 21.4% of the combined Layer TVL among L2 networks. With $5.96B in assets, Arbitrum dominates 65.68% of the L2 market.
L2 TVL was at an all-time high of $9.288 billion on April 6 after surpassing its previous ceiling of $7.5 billion on March 24. This coincided with the launch of ZkSync Era, which has since garnered $173 million worth of assets.
Optimism ($OP) has a market cap of $699.139 billion and is currently trading at $2.22, down 2.29% in 24 hours.
What is Optimism:
Optimism was established in 2019 by a team of Ethereum developers and operated as an L2 blockchain that leverages optimistic rollups to process transactions in batches. This technology offers users cost-effective and almost instantaneous transactions. Optimism is also a reliable, scalable, and secure platform for developers seeking to create Ethereum applications quickly.