The Ethereum blockchain is set to undergo a major overhaul as Optimism, a layer 2 scaling solution, announces the Bedrock hard fork scheduled for June 6. The upgrade is expected to last anywhere between two to four hours, starting at 16:00 coordinated universal time (UTC), during which deposits and withdrawals will be on hold.
In February, the Optimism Foundation proposed the protocol upgrade, now hailed as “the largest upgrade ever released on OP mainnet” and a “complete re-write.” The upgrade is touted to offer a new level of modularity, simplicity, and Ethereum equivalence for layer 2 solutions, delivering unprecedented performance and functionality.
Layer 2 solutions are facing intense competition, striving to capture market share as the go-to Ethereum scaling solution. The current industry leader is Arbitrum, followed by Optimism and various rollups utilizing zero-knowledge cryptography, as per the L2Beat website. Optimism has recently announced significant partnerships, such as crypto exchange Coinbase and venture capital firm Andreessen Horowitz (also known as a16z), both planning to build on Optimism’s network.
These developments seem to be fueling positive market sentiment, evidenced by Optimism’s OP token rallying with a 77% gain so far in 2023, outperforming ether (ETH) by 25%. Notably, the Optimism community approved the Bedrock upgrade in April with an overwhelming 99.87% of votes in favor, as mentioned by crypto analysis firm Messari.
The Bedrock upgrade plans to implement a modular architecture, separating the OP stack into consensus, execution, and settlement components. This allows Ethereum execution clients to be transformed into Optimism execution clients, as per Messari. Additionally, the upgrade aims to enhance bridge security by introducing a two-phase withdrawal process.
Despite the optimistic outlook (no pun intended) surrounding the Bedrock hard fork, it is essential for users and investors alike to remain vigilant and aware of potential risks during the upgrade. While Optimism’s team is confident the hard fork implementation will elevate layer 2 solutions on the Ethereum blockchain, estimations and projections can be upended in the ever-changing world of cryptocurrency and blockchain technology.
Do the Bedrock hard fork’s promised improvements hold the key to solidifying Optimism’s place in the Ethereum scaling solution market? Or will competitors like Arbitrum maintain their industry dominance? The future of Ethereum scaling solutions, as with many aspects of the cryptocurrency market, remains a dynamic and fascinating space to observe.
Source: Coindesk
