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Optimism Vs. Other Ethereum Scaling Solutions: The Ultimate Comparative Analysis

This article examines the differences between Optimism and other Ethereum scaling solutions, and compares them to other popular blockchains. It aims to provide readers with an understanding of the benefits and drawbacks of each chain, in order to help them make informed decisions about which solution to choose.

Introduction

What is Optimism?

Optimism is a popular layer-2 scaling solution for Ethereum that aids in the reduction of transaction fees and time on the Ethereum chain without sacrificing security and decentralization. The chain handles transactions off the Ethereum chain while leveraging its infrastructure. Optimism communicates with Ethereum’s layer-1 chain, which is responsible for security, decentralization, and data availability, while Optimism manages the layer-2 scaling solution. This reduces the load on Ethereum by removing the burden of financial transactions, which in turn reduces congestion on the network.

Optimism has unique features that set it apart from other scaling solutions. One of its most significant features is its ability to achieve a 10x to 100x improvement in scalability. Additionally, Optimism can reduce fees using its rolling technology. The chain is highly secured as it is built on top of Ethereum, and transactions are settled on the Ethereum mainnet. Lastly, Optimism provides an enhanced user experience by offering lower fees and faster transactions for new projects.

What is Polygon?

Polygon is a blockchain scaling solution that operates in conjunction with the Ethereum network. It is known as a 2-layer or sidechain scaling solution that enables faster transactions at affordable costs. Polygon allows users to bridge their cryptocurrencies over to its chain and interact with a wide range of Ethereum-based crypto applications.

The Polygon network employs the Proof-of-Stake mechanism to scale Ethereum with its abundance of sidechains. This mechanism aims to relieve congestion on the Ethereum network. The abundance of sidechains is intended to unclog the main platform in an effective and cost-efficient way. Compared to Ethereum’s 15 transactions per second, the Polygon chain presently processes nearly 7000+ transactions per second. The average block processing time is around 2 seconds.

Polygon’s architecture is made up of multiple layers, with the Ethereum layer being the most prominent one. The security layer, Polygon-Network layer, and finally the Execution layer are the other layers that make up the Polygon network. The main feature of the Polygon chain is its sidechains, which offer quick and low-cost transactions on the main chain. Ethereum is the first suitable layer-1 base chain for Polygon’s sidechains.

The Polygon Software Development kit (SDK) is at the network’s core. The SDK can be used to build Ethereum-compatible decentralized applications as sidechains and connect them to the main chain. Polygon sidechains can be built using scalability methods like Plasma chains, zk-Rollups, or optimistic Rollups.

What is Arbitrum?

Arbitrum is an innovative scaling solution that operates above the base layer of the Ethereum blockchain. Its main objective is to increase the speed of Ethereum smart contracts while adding privacy features to make transactions more secure. One of the key benefits of using Arbitrum is its unique technology called Optimistic Rollup, which interacts between two chains.

This technology enables transaction processing to be completed at layer 2 while simultaneously recording the results in the main chain. The chain aims to drastically increase its working speed and efficiency with this process, making it a highly attractive option for those looking for faster and cheaper transactions.

Arbitrum is also considered to be the most EVM-compatible rollups at the bytecode level. This means that any language that can compile to EVM can be used, making it highly flexible for developers. Furthermore, the team behind Arbitrum is working hard to minimize barriers by producing comprehensive documentation for developers. This focus on keeping the platform accessible to developers is a key part of Arbitrum’s strategy to make it a highly popular choice among developers.

Another key advantage of using Arbitrum is that it offers low fees compared to Ethereum using its efficient roll-up technology. By cutting fees into fractions while providing sufficient incentives for validators, the chain is able to offer highly competitive pricing for users. This is a major advantage in an industry where fees can often be prohibitive, making it highly attractive to those looking for a cost-effective solution.

Pros & Cons of Polygon vs. Arbitrum vs. Optimism

Pros

Polygon	Arbitrum	Optimism
It is more secure due to the validation system	It offers 100 times the throughput with only 2% of the fees	EVM equivalence focuses on going one-step ahead
The multi-chain system allows Polygon to access & use the full power of Ethereum.	High EVM compatibility	High secured data
It uses a joint system of PoS & Hemidall architecture which increases the scalability & power.	A good ecosystem with powerful tools	Faster transactions with low costs
Polygon offers a similar experience to that of Ethereum	It uses a joint PoS & Hemidall architecture system, increasing the scalability & power.

Cons

Polygon	Arbitrum	Optimism
There is high competition among the other scaling networks like Polkadot, Solana, etc.	If Ethereum 2.0 is developed completely, Polygon’s existence may be challenged in the coming days.	Long & costly withdrawals
It is ethereum dependant	The Arbitrum gas fees are different from the Ethereum gas fees, serving a different purpose.	Potential incentive misalignment between network participants
There is high competition among the other scaling networks like Polkadot, Solana, etc		Underlying L1 censoring transactions

Comparative Analysis

Name	Polygon	Arbitrum	Optimism
Launch Date	2017	May 28, 2021	December 2021
Founder	Sandeep Nailwal	Steven Goldfeder	Jinglan Wang
Blockchain Protocol	Polygon Chain for Ethereum Mainnet	Arbitrum Chain for Ethereum Mainnet	Optimism Chain for Ethereum Mainnet
Native Token	MATIC	ARB	OP
Token Type	ERC-20	ERC-20	ERC-20
Market Cap	$9,85 billion	$1,7 billion	$707 million
Circulating Supply	9,08 billion	1,2 billion	314 million
Max Supply	10 billion	10 billion	4.29 billion
Consensus Method	PoS	PoS	Optimistic Rollup
Architecture	Multi-layer	Arbitrum Virtual Machine	Optimistic
Scalability	Layer-2 scaling solution	Layer-2 scaling solution	Layer-2 scaling solution
Transaction Speed	Up To 65,000 TPS	40,000 TPS	2,000 to 2,000 TPS
Holders	590,895	283,857	573,356

Conclusion

Optimism is a highly secure and reliable solution for those looking for a cost-effective and scalable option. Its unique features and compatibility with Ethereum make it an attractive choice for developers and users alike. With its ability to achieve a 10x to 100x improvement in scalability, Optimism sets itself apart from other scaling solutions.

Additionally, Optimism can reduce fees using its rolling technology, which is highly attractive to users looking for faster and cheaper transactions. The chain is highly secured as it is built on top of Ethereum, and transactions are settled on the Ethereum mainnet. Optimism provides an enhanced user experience by offering lower fees and faster transactions for new projects, making it one of the most reliable and popular choices among developers and users.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Thana

Coincu News

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.