ARB Vs OPT: The Battle Of Rollup Scaling Solution
By Laxmikant Khanvilkar
When it comes to selecting best blockchain for executing smart contracts, without doubt Ethereum remains the default choice for validators. However, Ethereum lags behind when one seeks to process the transaction at a faster pace. Besides, the security of the nodes is also vulnerable to hacking.
In such a scenario, Arbitrum and Optimism offer better option. As we know, Arbitrum and Optimism are layer-2 rollup solutions designed to scale Ethereum by bundling transactions, processing them off-chain, and submitting proofs for validation on Ethereum.
Optimism has faster transactions but higher fees due to its single-round fraud proof mechanism relying on layer-1 computations.
It’s definitely not the fastest blockchain, and it’s certainly not the cheapest, either. So, while it facilitates a seamless process, it could always use some extra help from layer-2 rollup solutions.
Optimism and Arbitrum are two of the most popular networks helping to take the load off of Ethereum. Although, both help scale Ethereum using optimistic rollups, it’s their nuanced differences that set them apart in terms of speed and cost.
Let’s understand what exactly optimistic rollups are and how the two biggest layer-2 networks utilizing them stack up against each other.
Rollups are blockchain scaling solutions that execute transactions on a layer-2 network and then post them on a layer-1 network—in this case Ethereum.
Optimistic rollups are secured through a cryptographic method called a fraud proof.
In an optimistic environment, the state submitted by layer-2 to layer-1 is assumed to be valid, which means all transactions get the benefit of doubt, and fraud proofs are used to check the validity of a given transaction only if it’s challenged by another party.
Conducting computation and validation on layer-2 is much faster and cheaper than layer-1. However, each transaction is challenged for up to seven days, and hence funds are locked up during this period. This facilitates detecting the fraud and once the proof is submitted, it helps determine the legitimacy of a given transaction.
Remember, Optimism rollups are compatible with Ethereum. It creates a bridge across the networks and because of developer-friendly nature, they function similar to Ethereum.
Optimums is a layer-2 optimistic rollup network created to help scale Ethereum. It is the second-most popular rollup solution on Ethereum and has a 10% share of the entire Ethereum layer-2 market.
The validation mechanism on Optimism is called a single-round fraud proof.
Arbitrum is another layer-2 network that uses optimistic rollups to scale the Ethereum blockchain. It is the most popular scaling solution with more than 50% market share. It is compatible with all ERC-20 tokens and main currency for paying fees and posting bonds is ETH.
Between Arbitrum and Optimism, the former dominates in all comparable metrics while enjoying technical advantage as well.
The Arbitrum Virtual Machine (AVM) enhances EVM coding languages and ensures perfect compatibility with the Optimistic Virtual Machine (OVM). Arbitrum relies less on layer-1 computations than Optimism. This means it will face fewer issues in the event of a hard fork or blockchain upgrades.
Arbitrum is also more appealing to DeFi investors than optimism for a couple of reasons. Arbitrum has native Ethereum token support while Optimism supports newer token standards.
An accessible bridge for transferring assets to layer-2 is attributed to Arbitrum’s higher level of adoption compared to Optimism which deploys dedicated bridges based on demand.
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