It is only a matter of time until each cryptocurrency exchange and Fintech signature are executing their own block chain, according to OP Labs, builder of Optimism of Ethereum Superposition Protocol.
The logic is simple and simple, says the product manager of OPS Labs, Sam Mcingvale, who points out the fugitive success of the Layer-2 (L2) network of Coinbase from his debut in 2023.
To begin with, the base has accumulated an incredible ecosystem of users and developers to support the exchange, Mcingvale said. But the greatest obvious is how a system as a base, combined with loans supported by Bitcoin de Coinbase, allows inactive cryptographic assets that feel in custody are monetized lending them, he added.
Base was built using Optimism’s Op Stack, a software product that helps users develop layer 2 block chains that work with Ethereum but provide faster and faster and cheap transactions. Mcingvale said that the success of the base is the largest layer 2 of a series of metrics, including the total blocked value, it is an illustration of how the industry is likely to develop.
“I hope that each cryptocurrency exchange and each Fintech company executes its own block chain in the next five years,” Mcingvale said in an interview. “If you have Bitcoin in Coinbase, in a button, they will take that bitcoin, they will move it to the base, allowing you to borrow the USDC. And now you can do what you want with that USDC.”
Both optimism and rival referee assume that a transaction is therefore valid, “optimistic”, with potential fraud detected through failure tests without permission. Optimistic curly increase the performance of the Ethereum base layer by processing transactions outside the chain to reduce calculation load, deriving safety by publishing transactions results in the underlying block chain or Capa-1. Another approach is to use zero knowledge tests to create rolls that publish validity cryptographic tests for transactions outside the chain.
Mcingvale, who was instrumental in the construction of the custody business in Coinbase, points out the point more than simply maintaining cold storage cryptography on a relatively expensive platform.
“Traditionally, there has been a cost for custody a lot of cryptography, due to all security implications,” Mcingvale said. “Unlike custody actions, where you really do not pay for that, these actions lend themselves and things happen under the hood. The cryptogram remains much more incipient, but moves in that direction.”
Clearly there has been a bit of base envy in the cryptographic earth. Global Exchange Kraken has introduced ink, a layer 2 block chain that also uses optimism, as well as Bybit, Bitget and OKX. Fintech’s signatures such as Robinhood, for example, are also exploring their own L2 linked to Ethereum.
The modular vision of optimism of an interoperable “superchain” would ideally allow users to move from a block chain to another just when their browser moves from one website to another, Mcingvale said.
“The first cryptography users were much more willing to endure a kind of shit UX,” Mcingvale said. “People would expect 12 seconds for something to confirm and pay $ 50, because it was this new technology that they were exploring, probably similar to being in line in the mid -90s. As, it was painful.”
