The Optimism network, a layer 2 solution built on the Ethereum blockchain, has recently implemented a significant upgrade called “Bedrock.” With this update, ETH, the cryptocurrency of the Ethereum network, is now treated as a native token alongside Optimism’s own OP token.
Before the upgrade, ETH functioned as an ERC-20 token within the Optimism network. However, under the new system, ETH is recognized as the native token of both the Ethereum and Optimism networks. The transition was noted through a transfer of over $550 million worth of ETH out of the Optimism Gateway, which serves as a bridge for assets moving between the Ethereum network and Optimism’s layer 2. According to blockchain analytics firm Arkham Intelligence, the transfer represents the second-largest movement of ETH in the past 14 days.
The ETH originated from users who deposited their Ethereum cryptocurrency into Optimism. Following the transfer, the ETH balance of the Optimism Gateway was relocated into a new address within a new smart contract on Optimism called the Optimism Portal. This portal is responsible for transmitting messages between the main Ethereum blockchain and the Optimism network.
The intentions behind the Bedrock upgrade are to transform the layer 2 network into a “Superchain” of interoperable and composable blockchains, all based on Optimism’s OP Stack. In fact, American crypto exchange Coinbase is in the process of building its own layer 2 network called Base on Optimism.
As part of the upgrade, a new method for making deposits has been introduced through the Optimism Portal contract. This process treats ETH as a native token, meaning that L1 to L2 transactions could involve both ETH and associated data. To implement this approach, ETH storage had to be decoupled from the rest of the ERC-20 tokens in the Optimism Gateway and moved to the Optimism Portal.
Though the Optimism Gateway no longer includes ETH, it still holds over $576 million worth of tokens such as USDC, USDT, wBTC, and rETH, according to Etherscan, a block explorer. All in all, the Bedrock upgrade showcases Optimism’s continuous advancements and demonstrates the Ethereum community’s ongoing efforts to enhance the capabilities of both layer 1 and layer 2 networks.
Source: Coindesk
