Try Quests to earn cryptoEVM - 4. The “Flippening” Comparison
Introduction
What is Optimism?
Optimism is a layer 2 chain, meaning it functions on top of Ethereum mainnet (layer 1). Transactions take place on Optimism, but the data about transactions get posted to mainnet where they are validated. It’s like driving in a less crowded side street while benefiting from the security of a highway.
Optimism is the second-largest Ethereum layer 2 with a total of $313 million locked into its smart contracts, as of this writing, according to Defi Llama. Arbitrum comes first with $1.32 billion.
Synthetix, a derivatives liquidity protocol, is the largest protocol on Optimism, with a total value locked (TVL) of $125 million. Uniswap, a decentralized exchange (DEX), is the second most popular protocol on the chain. As of this writing, there are 35 protocols on Optimism with at least $1,000 locked into their smart contracts.
How does Optimism work?
Optimism uses a technology called rollups, specifically Optimistic rollups.
They’re called rollups because they roll up (or bundle) the data about hundreds of transactions – non-fungible token (NFT) mints, token swaps … any transaction! – into a single transaction on Ethereum mainnet (layer 1). When so many transactions are rolled up into a single transaction, the blockchain transaction, or "gas," fee required to pay comes down to only one transaction, conveniently distributed across everyone involved.
And they’re called Optimistic rollups because transactions are assumed to be valid until they are proven false, or in other words, innocent until proven guilty. There’s a time window during which potentially invalid transactions can be challenged by submitting a “fraud proof” and running the transactions’ computations with reference to available state data. Optimism reimburses the gas needed to run the computation of the fraud proof.[1]
What Is Arbitrum?
Arbitrum is a layer 2 solution designed to improve the capabilities of Ethereum smart contracts — boosting their speed and scalability, while adding in additional privacy features to boot.
The platform is designed to allow developers to easily run unmodified Ethereum Virtual Machine (EVM) contracts and Ethereum transactions on a second layer, while still benefiting from Ethereum's excellent layer 1 security.
It’s built to address some of the shortcomings of current Ethereum-based smart contracts — such as poor efficiency and high execution costs — which have damaged the Ethereum user experience and frequently make transacting an expensive task.
Arbitrum uses a technique known as transaction rollups to record batches of submitted transactions on the Ethereum main chain, and execute them on a cheap, scalable layer 2 sidechain while leveraging Ethereum to ensure correct results. This process helps to offload most of the computational and storage burden Ethereum currently suffers from, while enabling new classes of powerful layer 2-based DApps.
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New York-based development firm Offchain Labs is currently building the Arbitrum product, as well as an entire suite of scaling solutions. The initiative is spearheaded by Offchain Labs co-founders Ed Felten, Steven Goldfeder and Harry Kalodner. Ed is a professor, Steven received his Ph.D, and Harry is a Ph.D. candidate at Princeton University. All three are blockchain experts with a passion for making cryptocurrencies more capable.[2]
Method
In this dashboard, we are going to explore and compare Ethereum vs L2s (Optimism, Arbitrum ) in some metrics which are :
- weekly tx and user count per network
- weekly tx per user per network
- weekly new user count
- user retention
- time difference between first and second tx
- sectors by popularity in first transaction
- TPH/TPM/TPS per Network
- tot tx count per sector
- daily and total transaction status
- transaction failure share by sectors
Findings
- According to the obtained results:
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While the number of Ethereum daily transactions has been almost constant in recent months, the L2 networks, especially Arbitrum and Optimism, have experienced an exponential growth in this regard.
On November 9, 2022, for the first time, the total transactions of Optimism and Arbitrum surpassed its parent network, Ethereum, by registering a record of 1.39 million daily transactions.
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This is a sign of the increasing favor of users to Ethereum L2 solutions and is of great importance.
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The number of users and daily transactions related to Ethereum itself, is much higher than the other two competitors. other two were almost close to each other in the number of transactions and also active users.
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In terms of attracting new users, These two networks have not been able to reach the total of Ethereum. Unlike recent months, Optimism has been able to attract more new users than Arbitrum in recent days.
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Findings
- In terms of user retention,Optimism and Arbitrum were in a same situsation by almost 72% retension ratio.but Ehereum has recorded a lower ratio by 58.3 % .
- Majority of second transactions in L2 chains were happened in the same day of first transaction .in terms of Ethereum, 45% happened in the first day and 21.3% happened after 2 months!
- In L2 chains, Layer2 is the most popular section in the first transactions. Dex is second most popular in Arbitrum and NFT is the second most popular in Optimism in First txs. In terms of Ethereum, the first popular section is CEX Followed by Layer2.
Findings
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Ethereum with ~40k TPH is the most rapid one and Optimism ranks second with 26k and Arbitrum stands in third place with 21k TPH.
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As for TPM and TPS, Ethereum is in a better position than the other two networks. Optimism has been able to overtake Arbitrum in recent weeks by recording better amounts.
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