Popular scaling solution Ethereum Optimism has announced a $150M Series B funding round led by Andreessen Horowitz (a16z) and Paradigm for a total of $1.65B.

According to the Optimism blog, the Layer 2 (L2) solution has saved users of the Ethereum network over $1 billion in gas taxes. The funding will be used to expand the Optimism team and further reduce network fees.

Optimism network fees were reduced by a total of 30% last year. The team is currently working on an Ethereum Improvement Proposal (EIP-4844) for Shard Blob transactions, which could reduce the Ethereum network fees by up to 100x in the near future.

L2 solutions such as optimism have grown exponentially due to increased demand for non-fungible tokens (NFTs), smart contracts, and decentralized finance (DeFi) applications on the Ethereum network, which in turn hinder transaction processing and raise taxes on gas.

Optimism works through the use of Optimistic Summaries, which aggregate transactions off the Ethereum blockchain and provide benefits by reducing slippage, reducing transaction costs, and dramatically improving transaction speeds.

According to data tracker L2Beat, the total fixed value (TVL) on L2 platforms has risen to $5.76 billion, with Optimism currently ranked fourth among its L2 peers with almost $440 million TVL on the platform.

Ken Warwick, an Australian cryptocurrency veteran and founder of Synthetix, a decentralized derivatives exchange, told his 107,000 Twitter followers that not only did he participate in the optimism funding round, he also “doubled heavily” and predicted optimism would “outperform ETH.” on a scale.” thus.”

Late last year, Optimism expanded its status to a simple whitelist and made the network public, meaning that any developer can start building a project on the Optimism network.

RELATED: Optimism Announces Updates That Allow “One-Click” Scrolling

Public access to web development has great productivity benefits, but as iOS developer Jailbreak Saurik discovered, it also allows for “fatal errors.”

Jay Freeman, aka Sauric, discovered such a bug in early February that would allow a malicious hacker to create unlimited ETH on the network, alerting the Optimism team. He received a $2 million award, one of the largest to date.

Source: CoinTelegraph