What is Optimism?

Optimism is a fast, stable, and scalable L2 blockchain built by Ethereum developers, for Ethereum developers. Built as a minimal extension to existing Ethereum software, Optimism's EVM-equivalent architecture scales your Ethereum apps without surprises. Optimism is a scaling solution for Ethereum that can support all of Ethereum's Dapps. Instead of running all computation and data on the Ethereum network, Optimism puts all transaction data on-chain and runs computation off-chain, increasing Ethereum's transactions per second and decreasing transaction fees.

Optimism (OP) is the native token of Optimism, OP has a total supply of 4.294 billion. The OP token gives holders participation rights in The Optimism Collective.

Optimism is designed so that users can send arbitrary messages between smart contracts on Optimism and Ethereum. This makes it possible to transfer assets, including ERC20 tokens, between the two networks. The exact mechanism by which this communication occurs differs depending on the direction in which messages are being sent. Optimism uses this functionality in the Standard bridge to allow users to deposit assets (ERC20s and ETH) from Ethereum to Optimism and on also allow withdrawals of the same from Optimism back to Ethereum.

Learn more at:

Bedrock Upgrade

Bedrock is the cheapest, fastest, and most advanced rollup architecture. Ever!

Bedrock is the one of the major releases of the Optimism network, It will reduce the differences between Optimism and L1 Ethereum.

Here are the most visible changes (from the user and dapp developer perspectives):

• The L1 security fee will be lower. Bedrock will use a much more efficient compression algorithm, and avoid calling a CTC chain contract.

• Blocks will be produced every two seconds, of the number of transactions. Some blocks will be empty, others filled to the block gas limit.

• Optimism will use the same EIP 1559 mechanism as L1 Ethereum (for the L2 execution fee).

• Rather than accepting or rejecting transactions immediately, the sequencer will store them in a private mempool, and use priority fees to order them.

• Deposits (transactions from L1 Ethereum to Optimism) will be processed by verifiers even when the sequencer is down, so the sequencer will be unable to delay transactions submitted on L1.

• Address aliasing will now apply to withdrawals (transactions from Optimism to L1 Ethereum) in addition to deposits.

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Bedrock is also the foundation for Optimism’s next-generation fault proof system: Cannon. A collaboration between Optimism and geohot, Cannon is an interactive fault proving system designed to keep Optimism both simple and secure. An Alpha version of Cannon is scheduled for prime-time soon after the release of Bedrock. Wen proofs? Soon Bedrock proofs 👀.

But Bedrock isn't just an upgrade, it’s a completely new paradigm for how rollups should be built. Bedrock was designed from the ground up to set the foundation for real security and decentralization. Bedrock (combined with Cannon) is the only rollup architecture capable of easily supporting multiple fault proof and client implementations, a core component in the quest to remove upgrade keys from rollup fault proofs. With Bedrock, Optimism is gunning to be the first EVM-based rollup to achieve Ethereum-level security guarantees.

What Should We Expect From Bedrock Upgrade?

Bedrock is a transparent upgrade: for most users, they won’t notice a thing. Here are a few exciting things users hopefully will notice:

• Average transaction fees will be significantly reduced so Optimism can keep the title of cheapest EVM-based Optimistic Rollup on the planet.
• Deposits and withdrawals are now highly optimized.
• Optimism nodes will sync up to 50x faster. That’s some fast code.

Read More at: https://dev.optimism.io/introducing-optimism-bedrock

For Developers:

on Jan. 12, OP Labs announced that they have completed the successful upgrade of Optimism’s Goerli Testnet to Bedrock! Deposits and withdrawals are re-enabled, and the Optimism Goerli Sequencer is back up & running. Big thanks to all our partners for their support in making this migration possible!

Dashboard Introduction and Methodology

In this dashboard, I am going to analyze the activity over the Optimism chain and its users’ behavior in the days leading up to and the days following the Bedrock upgrade on January 12.

So, I am going to separate this analysis’s timespan into 2 parts:

1- Before Upgrade: 1 Week Before The Bedrock Upgrade (7 - 12 January)

2- After Upgrade: 1 Week After The Bedrock Upgrade (12 - 19 January)

I am going to mainly focus on the overall activity on the Optimism chain during this time period and also examine the mentioned metrics (in the previous part) such as (and especially) transaction fees, block production and Ethereum <=> Optimism bridging activity. So, here are what you will see analyzed in this dashboard:

• Overall Overview of Optimism Transactions, Success Rate, Active & New Users on Chain.
• An in-depth Analysis of Gas production (transaction fees) on Optimism (for example, generated fee per block, per day, per hour in a day, per 1M $USD transferred liquidity on the chain)
• Block production and speed of this process on Optimism.
• L1 (Ethereum) <==> L1 (Optimism) Briding activity.

All of above metrics are analyzed in 2 mentioned time periods over time and then, an average daily comparison of these metrics will be done during the 2 mentioned time periods.

The main tables that I am going to use for this analysis are Flipside’s optimism.core.fact_transactions, optimism.core.ez_eth_transfers, optimism.core.fact_blocks, ethereum.core.ez_token_transfers and ethereum.core.ez_eth_transfers.

==This analysis is done on 20th January 2023.==

Optimism Transactions Overview

Transactions Fees

According to the above analysis, The activity on Optimism chain has increased signifncatly during the first day after the Bedrock update but after a while and especially during the last 2 days (18 & 19 January), we can see significant decline in Optimism activity and the number of active & new users on this chain over time. The success rate of Optimism transactions has decreased slightly after the Bedrock update. Moreover, the number of transactions per minute, per second and also the number of active users per minute on Optimism chain has increased during the first days after Upgrade but again after a while and especially during the last 2 days, we can see massive decline in these metrics too. In an average daily analysis, we can see that number of transactions and also new first-time users during the days before Update was more than After update days (mainly because of those massive declines in the last 2 days) but the average daily number of new users after Update is more. Also, we can see that the daily activity of an average Optimism user during the days after the Upgrade has decreased slightly, since we can see the number of done transactions by this user was more and another negative thing is that the average daily paid fees by this average user has increased slightly after the Update (which was not suppossed to!)

Here we can see some frustrating results on Optimism and its Bedrock update. The volume of daily generated fees on Optimism and also the average transactions fees on this chain during the days after the Update has increased compared to the days before that! While according to the announcements and developers’ comments, the transactions were supposed to generate less fee after this update! during the last 2 days oft the chart (especially on 18th January) we can see the highest average transactions fees on Optimism and this day is almost 6 days after Bedrock update implentation on this chain.

But on the left charts, we can see some satisfying results.

during the days after the Bedrock upgrade, the share of transactions which have produced less fees have increased and on the other hand we can see decreasing share of transactions with higher fees.

As time goes on and especially during the last days, we can see increasing share of low-fee transactions on Optimism which can be because of the positive impact of Bedrock update on this chain.

According to the left charts, the average generated gas per block on Optimism has also increased significantly after the Bedrock upgrade which is not good!

this generated fee per block is increasing more and more as time goes on and reaches its highest value on 18th January.

On the left charts, I have analyzed the hourly generated fees on Optimism chain within an average single day.

We can seee that highest fees on Optimism are generated between 14:00 - 17:00 and before and after that, the generated fees on Optimism is lower.

Anyway, in majority of hours, we can see that generated fees on this chain during the days after the Bedrock upgrade is more than generated hourly fees during the days before this update which is another negative point!

On the left charts, we can see the correlation between $OP token price and the average transactions fees and also daily generated fees on Optimism over time.

We can say there is kinda positive correlation between these metrics especially till 16th January but after this date, as mentioned earlier, there is massive decline in Optimism activity and also its generated fees but the price of $OP was not affected negatively like that.

in this part, I have analyzed the average generated fee on Optimism network per $1M liquidity transfer on this chain.

As we see, during the days before the Upgrade (0.565 ETH) the generated fee was less than the days after the update (0.71 ETH) and this is another negative point for Bedrock update …

Blocks Performance

The results in this part are kinda similar to the overall transactions activity on Optimism chain. The number of daily and per-second produced blocks on Optimism has increased during the first days after the Bedrock update but after a while and especially during the last 2 days of the chart, we can see a massive decline in the produced blocks on Optimism.

Totally and mainly because of those negative stats during the last 2 days, the average daily number of produced blocks on Optimism during the days before Bedrock update was more than during the days after the Update.

Bridging Activity

L1 to L2 (Ethereum => Optimism)

Based on the above and left charts, the overall briding activity from Ethereum to Optimism after the Bedrock update have increased significantly in all terms of number of bridges, number of bridgers and also the volume of bridges.

So, we can say here there is a positive impact of Bedrock update on Optimism chain and the bridging activity on this network especially in terms of transferred volume.

Despite way lower number and volume of bridges from Optimism (L2) to Ethereum (L1) compared to the bridges from Ethereum to Optimism, we can see that number and especially volume of bridges from L2 to L1 has increased signifncatly during the days after the Bedrock update.

This can be both good and bad for Optimism:

Good because the bridging activity via Optimism native bridge has increased.

Bad because there are more and more volume and number of assets which are being transferred out of Optimism (L2) chain to the Ethereum (L1) destination.

Summary and Conclusion

• According to the above analysis, at least so far, the Bedrock update has not been as successful as it should be on Optimism. This update not only failed to reduce the transaction fee, but we also saw that the daily generated transaction fee and average fees per transaction have increased as well as the gas produced per block and per 1M $USD liquidity transfer on Optimism, which is not at all a good point for the Optimism network and the update that has been waiting for a long time and was counting the moments for it!
• Anyway, we have seen some increasing activity of the Optimism chain during the first days after the Bedrock update but after a while, and especially during the 18th and 19th of January, the overall activity and also daily generated fees on this network has been declined significantly.
• One of the positive points that we have seen in this analysis was the increasing share of transactions with low-fees compared to the transactions with higher fees. We have seen that the number of transactions that are generated low fees is increasing more and more as time goes on and on the other hand, there was a decline in transactions that are generated high-fees on Optimism network.
• Another positive thing that we have seen in this analysis was the increasing number and volume of bridges in both paths from/to Optimism to/from Ethereum network.

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L2 to L1 (Optimism => Ethereum)