It is only a time until each cryptocurrency and fintech firm exchange operates its own blockchain, according to OP Labs, builder of the Ethereum Overlay protocol optimism.
Logic is straightforward and simple, says the head of the OP Labs of the product, Sam Mcingvale, pointing to the success of running the Coinbase’s Layer-2 (L2) Network base Because of this Debut in 2023.
For a start, the base was accumulated by an incredible ecosystem of users and developers to back the exchange, Mcingvale said. But the biggest no-brainer is how a system like the base, combined with Bitcoin’s loans supported by CoinbaseAllowing the dormant properties of the crypto sitting to be careful to be monetized by lending them, he added.
The base was built using the op stack of optimism, a software product that helps users to build Layer-2 blockchain That work at Ethereum but provides faster, cheaper transactions. Mcingvale said the base success, this is the Largest layer 2 By a number of metrics including the total amount locked, it is a description of how the industry is likely to develop.
“I look forward to every crypto exchange and every FinTech company to run their own blockchain over the next five years,” Mcingvale said in an interview. “If you have Bitcoin on Coinbase, on a button, they’ll take that bitcoin, move it to the base, which lets you borrow USDC from here. And now you can go do whatever you want in the USDC.”
Both Optimism and rival arbitrum Assume that a transaction is in effect – therefore “optimistic” – with potential fraud detected by unauthorized proofs. Optimistic rollups strengthen the throughput of the base layer of Ethereum by processing off-chain transactions to reduce calculation load, obtaining security by publishing transaction results in the underlying, or layer-1, blockchain. Another approach is to use zero-knowledge proof to create rollups that publish proof cryptographic validity for off-chain transactions.
Mcingvale, who has been instrumental in developing a business with Coinbase, is making an additional point that only crypto handling with cold storage on a platform works quite expensive.
“Traditionally, there was a cost to keeping a lot of crypto, because of all security implications,” Mcingvale said. “Unlike the equities of caution, where you don’t really pay for that, those equality are lent and things happen to them under the hood. Crypto is more than nascent, but it moves in that direction.”
There is clearly a small base envy that occurs in the crypto land. Global Exchange Kraken introduced the inka layer-2 blockchain that also uses optimism, as there are Bybit, Bitget and Okx. Fintech firms Like Robinhood, For example, also exploring their own L2 linked to Ethereum.
The modular vision of optimism of an interoperable “superchain” will perfectly allow users to go from one blockchain to another like moving their browser from one website to another, Mcingvale said.
“Early Adopters in Crypto are better prepared to organize a crappy UX type,” Mcingvale said. “People will wait 12 seconds for something to confirm and pay $ 50, as this is this new technology they explored, probably like being online in the mid -90s. Like, it hurts.”
