What is Optimism?

Overview

Optimism runs Ethereum-style apps on a separate network. It sends final results back to Ethereum.

Compare OP Mainnet with Ethereum and other rollups. Separate L2 execution, Ethereum data publication, settlement, and withdrawal steps. Treat ETH gas and OP governance as different fields.

What is Optimism used for?

Optimism is for Ethereum-compatible applications that need a separate execution layer while retaining Ethereum settlement.

The problem. Putting every application transaction on Ethereum mainnet makes applications compete for the same constrained blockspace and its related cost.

How Optimism responds. The OP Stack separates execution, consensus, data availability, and settlement. Optimism processes activity at Layer 2 while Ethereum finalizes the resulting transactions.

What remains dependent. Sequencing, data publication, proof handling, and withdrawal timing remain part of the comparison because the chain settles on Ethereum.

Use cases

Using Ethereum-style apps on OP Mainnet with an Ethereum-compatible wallet.
Paying OP Mainnet transaction fees with ETH while app actions execute on the rollup.
Moving supported assets between Ethereum and OP Mainnet with the withdrawal path understood.

Who founded and maintains Optimism?

Optimism grew from early Ethereum scaling research and the Plasma Group. OP Labs develops the OP Stack, while the Optimism Foundation supports the governance and public-goods work around it.

Protocol company
OP Labs
Builds the OP Stack software used by Optimism and other Ethereum-connected chains.
Foundation
Optimism Foundation
Supports Optimism governance and the Optimism Collective's public-goods funding programmes.

What do ETH and OP do on Optimism?

Optimism uses ETH for transaction fees. OP is its governance token, so it is not the token a user needs to pay ordinary network fees.

Optimism fee and governance token roles
Token	Role	Reader consequence
ETH	Transaction fees	A wallet needs ETH for ordinary transfers, swaps, and app actions on OP Mainnet.
OP	Governance	OP holders participate in Optimism Collective governance; OP is not the gas token.

Sources: Optimism transaction-fee documentation; Optimism governance and OP token.

12-month OP price history

The chart shows the market price of OP over the last 12 months. It does not show network usage, project revenue, or a future return.

Recent network activity

How does Optimism work?

It uses an EVM-compatible optimistic-rollup model whose settlement and data publication depend on Ethereum.

Optimism executes transactions on a rollup and publishes the data or commitments needed for Ethereum settlement.

Where an OP Mainnet transaction executes and settles

This flow describes OP Mainnet: ordinary actions execute on OP Mainnet, while transaction data, commitments, finality, and withdrawals connect to Ethereum.

Submit on OP MainnetThe sequencer accepts and orders the action.
Execute on OP MainnetOP Mainnet's execution client applies the state change.
Publish to EthereumThe batcher compresses transaction data and posts it to Ethereum.
Settle through EthereumThe transaction becomes safe and then finalized through its containing Ethereum block.

Sources: OP Stack transaction flow; OP Mainnet withdrawal flow.

Apps, tools, and built-in features on Optimism

Optimism runs Ethereum-style apps away from Ethereum mainnet, then sends their results back to Ethereum for final settlement.

Tools and language: Solidity or Vyper, plus Ethereum wallets and common EVM development tools.
Trade-off: it is close to Ethereum and Arbitrum for app compatibility, but bridges, withdrawals, and the rollup's connection to Ethereum still matter.

Source: Optimism app-developer documentation.

What are Optimism's trade-offs?

Optimism gives Ethereum-style apps a separate execution layer while keeping final settlement on Ethereum.

Transaction experience: Everyday app actions run on the rollup rather than Ethereum mainnet, but data publication, sequencing, and withdrawal design still shape the user experience.
Compatibility: Solidity, Ethereum wallets, and common EVM tools make Optimism close to Ethereum and Arbitrum for application use.
Security and control: Ethereum settlement is the foundation, while the selected OP Stack chain and its sequencer model remain material differences between deployments.

Common questions about Optimism

Are ETH or OP good investments?

Optimism uses ETH for transaction fees. OP is its governance token, so it is not the token a user needs to pay ordinary network fees. This profile does not contain current comparable price, liquidity, supply, exchange-access, governance-concentration, or regulatory evidence, so it cannot determine whether either token is a good investment.

What should I verify before comparing Optimism?

Verify which OP Stack network the app uses, who orders its transactions first, and the total fee including Ethereum data costs. Use the same transaction type, asset route, confirmation target, and observation window when comparing Optimism with another network.

Compare Optimism with related networks

These comparisons share a payment, asset, application, or network-design trait. The important-difference column names the boundary that can change the choice.

Comparison	Shared focus	Important difference
Optimism vs Arbitrum One	Ethereum Layer 2 apps, Ethereum-style apps	Their rollup stacks differ: Arbitrum One uses Nitro; Optimism uses OP Stack.
Optimism vs Avalanche	Ethereum-style apps	Unlike Optimism, Avalanche has an independent Layer 1 settlement layer.
Optimism vs BNB Chain	Ethereum-style apps	BNB Chain operates independently from Ethereum; Optimism relies on Ethereum for final settlement.
Optimism vs Ethereum	Ethereum-style apps	Ethereum is Optimism's settlement layer and also runs apps directly on its own main network.
Optimism vs Ethereum Classic	Ethereum-style apps	Unlike Optimism, Ethereum Classic has an independent Layer 1 settlement layer.

Official Optimism technical sources

Start with the primary documentation, then check live data separately when the decision depends on it.