Optimism, one of the most popular Ethereum layer-2 platforms, can release the Bedrock upgrade on June 6, 2023.
Optimism Grows Through Bedrock In Early June
Ethereum’s layer-2 provider says the release is “highly anticipated” by the community and will introduce some changes that make the protocol more flexible, reducing transaction fees.
As such, Optimism offers an off-chain, general-purpose platform where users can deploy smart contracts and launch decentralized applications (DApps) at a low cost, especially scalable, and secure environment.
Optimism uses roll-ups and bundled transactions before confirming them on the Ethereum mainnet. This step lightens the mainnet, helping to reduce fees by re-routing demand to an off-chain solution.
According to Optimism, Bedrock will be a hard fork. This means that validators must update to the latest version. The optimism documentation reads “the network will keep the same chain ID, transaction history, and state. The first block of the new network is the last block of the old network +1.”
These changes accompanying the Bedrock hard fork improve scalability, usability, and security.
For example, the developer of the layer-2 protocol says that there is a better Ethereum Virtual Machine (EVM) equivalent because, even after the upgrade, Optimism remains compatible with the base layer, that is, Ethereum. Consequently, users will continue to deploy smart contracts as before the upgrade.
The Bedrock upgrade will introduce a new two-step withdrawal process on the Optimism Mainnet bridge that will improve its security and make exploits more difficult
One of the architects of the two-step retreat, @vex_0xexplains how⬇️https://t.co/qs6Dtsz2nO
— OP Labs (@OPLabsPBC) March 22, 2023
Additionally, Bedrock has introduced a new fee structure that makes fees more predictable and efficient. In excess, developers expect transfer or smart payments to deploy contracts to fall. Currently, L2fees data shows that simple Optimism transfers cost $0.30. Meanwhile, the swapping token costs $0.45.
From a security angle, Bedrock introduces a 2-step withdrawal process and a more robust sequencer. With a better sequencer, the developers hope that user funds will be better protected. At the same time, there is better usability with the introduction of the Optimism Portal, which allows for easy cross-domain messaging.
OP Prices Drop 50% From Q1 2023 Highs, Will the Bulls Return?
Despite all these changes, it remains to be seen if OP, the native sign of Optimism, will rise. As of writing on May 16, the token is down nearly 50% from its February 2023 high. However, considering the gains in Q1 2023 formation, the OP uptrend remains.
However, traders need more signals before committing. In recent days, the OP has been trending lower, falling below the critical support level in early May. Whether the OP bear will continue will be seen in the sessions ahead. However, what is clear is that OP prices have stagnated, finding support at 1.64.
Related Reading: OP Plummets 7% As Optimism Postpones Hardfork
Before the June 6 Bedrock upgrade, OP prices could recover, shake off the May bears, and align with the main trend set to move into Q1 2023.
Feature Image From Canva, Chart From TradingView