Layer-2 scaling solution for Ethereum – Optimism – has found a major backer in Andreessen Horowitz.
Andreessen Horowitz Leads $25 Million Round
The race to become the first Layer 2 scaling solution to fix the high gas fees woes for the largest smart contracts platform is heating up. The demand – both institutional and retail – for Layer 2 scaling solutions has experienced an uptick in recent times amid skyrocketing Ethereum transaction costs pushing as high as $40 on February 23.
Already, the likes of Matic Network (now Polygon), Arbitrum, and Optimistic are burning the midnight oil to become the first Layer 2 solution that is able to tackle Ethereums unaffordable gas fees problem at the earliest.
Against this backdrop, major venture capital firm Andreessen Horowitz (A16z) recently announced it is leading Optimisms $25 million Series A investment round.
The official announcement reads in part:
Weve spent a great deal of time looking at various approaches and teams building Layer 2s, and today were thrilled to announce we are leading a $25 million Series A investment in Optimism. Optimism is an Ethereum Layer 2 scaling solution that uses optimistic rollups to achieve far lower fees, far lower latency, and far greater throughput versus Ethereum Layer 1 alone while also providing a world-class developer and user experience.
For those not in the know, Optimism leverages rollups to bundle transactions together using smart contracts on an Ethereum side-chain before broadcasting them to the mainnet. Through this, Optimistic is not only able to achieve lower fees but also lower latency, and greater throughput vis-a-vis transacting on Ethereums Layer 1 mainnet.
At present, Optimism is in the midst of a phased roll-out and is expected to be ready for large-scale production toward the end of 2021.
Layer 2 Solutions Couldnt Come Earlier
While Ethereum has, for a long time, enjoyed its status as the largest and most active smart contracts platform, the recent surge ...
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