Optimism

What is Optimism?

Optimism is a layer 2 scaling solution built on top of Ethereum, designed to offer faster and cheaper transactions while maintaining the security and decentralization of Ethereum.

It achieves this by processing transactions off-chain and then batching them to be recorded on the Ethereum mainnet. Optimism uses Ethereum's robust security infrastructure but with enhancements that make it more efficient and cost-effective for high-throughput applications.

Why Choose Optimism for Your Protection Plan in Inheriti®?

When storing encrypted data shares in Inheriti®, Optimism provides a balance between the security of Ethereum and the efficiency needed for quicker, less expensive transactions.

Here’s why you might choose Optimism:

Lower Transaction Costs

Optimism significantly reduces transaction fees compared to Ethereum by processing transactions off-chain before finalizing them on the Ethereum mainnet.

This makes it a cost-effective option for users who want to enjoy the security of Ethereum without paying high gas fees.

Fast Transaction Speed

Optimism is designed for high throughput, meaning transactions are processed more quickly than on the Ethereum mainnet alone. This is ideal for users who require swift and reliable transaction processing for their protection plans.

Security via Ethereum

While operating as a layer 2 solution, Optimism benefits from the security of Ethereum. By leveraging Ethereum’s decentralization, Optimism maintains a high level of security, ensuring that your data shares are protected even as they are processed more efficiently.

Why Not Choose Optimism?

Less Decentralized Than Ethereum

Although Optimism relies on Ethereum for security, it is less decentralized on its own. For users who prioritize the highest level of decentralization, storing data directly on the Ethereum mainnet might be preferable.

Relatively New Technology

Optimism is a newer technology compared to Ethereum and Vechain, which means it may not have the same level of adoption or long-term stability. Users who prefer more established solutions may consider this a potential drawback.

Optimism's Gas Token: ETH

How It Works

Like Ethereum, Optimism uses Ether (ETH) as its gas token. However, because transactions are processed off-chain and batched together, the overall gas costs are much lower. This makes it an attractive option for users looking to minimize transaction fees while still benefiting from Ethereum’s security.

Considerations for Cost

Although significantly cheaper than using Ethereum directly, users should still be aware of the costs associated with gas fees on Optimism. These fees are more predictable and lower, making budgeting for transactions easier.

When to Choose Optimism?

• Cost-Effective Security: If you want the security of Ethereum but need to manage costs, Optimism offers a great balance by lowering transaction fees while still using Ethereum's decentralized network.

• High-Volume Transactions: Optimism is ideal for users who need to execute multiple transactions quickly and efficiently without sacrificing too much on security.

When to Consider Other Options

• Maximum Decentralization Needed: If your use case demands the highest possible level of decentralization, Ethereum itself might be the better choice, as Optimism, while secure, is still a layer 2 solution.

• Preference for Established Platforms: Users who prefer to stick with more established technologies may opt for Ethereum or Vechain, as Optimism is a newer solution and may carry more risk.