Optimism Raises $25 Million in Series A Funding Round

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by John K. Kumi · 3 min read
Optimism Raises $25 Million in Series A Funding Round
Photo: a16z

The raised funds will see the larger share going into this development that seeks to ensure that transactions are 10x improved with the L1 development experience preserved.

Andreessen Horowitz (A16Z), a venture capital firm has led a Series A funding round to raise about $25 million for Optimism, a public benefit corporation that concentrates on the scalability of the Ethereum Network. The firm has over some months been actively working on its Optimistic Rollup project. According to the blog post published by the supporting platform, A16Z, they are excited to be working with the Optimism platform in the period of rapid expansion of the Ethereum ecosystem.

“Optimism is currently amid a phased Rollup, and will be ready for large-scale production later this year,” it reads.

Journey from Plasma Group to Optimism Ahead of Funding

Having developed from a non-profit research organization, Plasma Group in an attempt to design Optimistic Rollup under their new company, Optimism, which is a layer2 scaling solution of Ethereum solicited for funds to put the design in production. Before their recent $25 million Series A funding round, the company raised $3.5 million from a couple of ventures including IDEO, the venture arm of design, and Paradigm, a crypto venture fund to help run the Optimism company.

On its first anniversary, Plasma Group was shut down and funds in their reserves were donated to a fundraising firm called Gitcoin. There were a lot of difficulties in running the Plasma Group as a none Profit Organization as they had to rely on donations and small checks to sustain the daily operations. The whole plan for the $3.5 million fundraised was to ensure that the optimistic Rollup Solution was successfully implemented, and developers can build applications on it as claimed by reports.

Optimistic Rollup

The raised funds will see the larger share going into this development that seeks to ensure that transactions are 10x improved with the L1 development experience preserved. The Optimistic Rollup commutes state update off-chain and ensures that transactions are posted with the state update on-chain by increasing the network throughput. It is worth noting that ZK-Rollup has adopted this technique, but the difference is that the Optimistic Rollup does not go the extra mile to verify that the validity of every state is updated. It, however, ensures that all rollup blocks are taken an optimistic view of, and assumed to be valid. Since the Optimistic Rollup was proposed, there has been significant progress.

The validity of the block according to the report can sometimes be proven to be invalid. In this case, the original block producer will take the responsibility by losing the security deposit initially provided before going ahead to produce the block, and a part of the funds will also go to the challengers.

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John K. Kumi
Author John K. Kumi

Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.

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