In recent times, L2 projects such as Linea, BASE, and opBNB have successively announced the launch of their mainnets, and the L2 track has become more and more lively. Many people believe that L2 will be the most important narrative of the next round of bull market. In the process of L2's vigorous development, what we cannot ignore is the OP Stack.
1. Introduction to OP Stack
OP Stack is a blockchain expansion solution launched by Optimism, which can help projects build Layer 2 side chains. OP Stack is a set of standardized, shared and open source development stacks maintained by the op collective, allowing anyone to use Optimisitc Rollup to build their own L2 blockchain on Ethereum.
The OP Stack is a six-layer structure:
1) Data availability layer
The Data Availability Layer (DA Layer) is an important component of the OP Stack, which is used to store and retrieve data published by the OP Stack, and directly affects the performance and scalability of the network. In the OP Stack, Ethereum is currently used as the data availability layer, which means that the data of the OP Stack will be stored on the Ethereum blockchain, which guarantees the security of its data.
EIP-4844 is an important proposal that aims to reduce fees at the data availability layer, which is one of the reasons why the Cancun upgrade has attracted so much attention.
2) Sorting layer
The sorting layer plays a key role in OP Stack, which determines how to effectively collect transactions from users on the chain and publish them to the data availability layer module. By default, OP Stack uses a single dedicated sorter to process transactions. However, this single sorter approach may introduce chain centralization risks.
In order to solve this problem, the official suggested that a multiple sequencer model could be adopted in the future. Multiple sequencers can provide higher security and decentralization, but may have a certain impact on the performance of the chain.
3) Derived layer
When the derived layer processes the raw data in the data availability layer, it is mainly responsible for parsing and processing this data in the OP Stack to generate processed input.
The close connection between the derivation layer and the data availability layer ensures the accuracy and integrity of the original data. The main task of the derivation layer is to process the original data, transform it into executable inputs, and ensure that these inputs can be correctly parsed and executed by the Ethereum engine. This collaboration and interaction enables the derivation layer and the data availability layer to work effectively, thereby providing efficient and reliable performance for the blockchain network.
4) Execution layer
The execution layer is a major component in the OP Stack, which is responsible for processing and executing smart contracts and transactions on the chain. In simple terms, the execution layer is the type of virtual machine used, and the execution layer of the OP Stack is EVM.
The goal of the execution layer is to provide efficient smart contract execution and transaction processing capabilities to ensure the performance and scalability of the blockchain network.
5) Settlement Layer
The settlement layer is an important part of the OP Stack, which is used to process L2 transaction data and send the confirmation information to the target blockchain for final settlement after L2 confirmation. The most basic solution is the optimistic protocol, but there are other solutions such as CANNON (the next generation fault proof solution).
In the future, it is possible to introduce validity proof mechanisms such as ZK (zero-knowledge proof) to solve the barriers between chains and between OP L2 and ZK L2, and further improve the performance and scalability of OP Stack.
6) Governance
The governance layer plays an important role in the blockchain system, managing the configuration, upgrades, and design decisions of the system. Multi-signature contracts are a mechanism that enables the credibility and decentralization of decisions by having multiple participants jointly sign transactions.
Governance token voting uses the voting power of token holders to determine system decisions, such as protocol changes, proposal approval, etc. This approach ensures the fairness and democracy of the decision-making process, allowing community members to participate in the development and decision-making of the system.
2. Current Applications of OP Stack
With the recent launch of Gitcoin Grants 18, we discovered that a new L2 has been added for donation payments: PGN (Public Goods Network), which is an L2 designed specifically for donations built by Gitcoin based on OP Stack.
From June to now, there are 11 new projects that have announced to build L2 networks based on OP Stack, including star projects such as opBNB, Zora, Worldcoin, DeBank, etc. The development speed of OP Stack is very rapid. Let's sort out the projects that build L2 networks based on OP Stack by time:
1）OPCraft
On October 18, 2022, on-chain game developer Lattice launched OPCraft, a dedicated on-chain virtual world game chain, using OP Stack. The launch of OPCraft will provide on-chain game developers with better experience and functions, and further improve the performance and scalability of games.
2）Base
On February 23, 2023, Coinbase launched the Layer 2 network Base built on OP Stack, which was opened to developers on July 13, and was officially launched on August 9 and open to everyone.
On August 20, Base TVL has reached 228 million US dollars, ranking fifth in L2. It is currently the best developed L2 network built based on OP Stack.
3) Quintus
On March 30, 2023, Kinto, a KYC DeFi network built on OP Stack, was officially launched. The network focuses on providing secure and insured decentralized financial services and is currently running on the test network.
4）UniDex
On April 2, 2023, multi-chain aggregator Unidex launched the Magma testnet built on OP Stack. UniDex hopes that the Magma network will provide users with secure and fast transactions and achieve low gas costs, creating greater value for users.
5）Magi
On April 19, 2023, a16z Crypto launched Magi, a Rollup client based on OP Stack, aiming to improve the client diversity and resilience of the entire OP Stack ecosystem and better meet the needs of different users and developers.
6）op-erigon
On April 20, 2023, Test in Prod developed an alternative execution client op-erigon based on OP Stack, which is currently being tested on OP Goerli.
7) Worldcoin
On May 11, 2023, Worldcoin, a crypto project co-founded by OpenAI CEO Sam Altman, announced a partnership with Optimism Collective to jointly build a scalable blockchain ecosystem based on the OP Stack.
8）Keystone
On May 31, 2023, Curio officially open-sourced L2 chain Keystone, a full-chain game engine customized based on OP Stack. Keystone can increase the speed of on-chain games by 100 times and provide a more powerful gaming experience.
9）opBNB
On June 19, 2023, BNB Chain announced the launch of the opBNB testnet, a Layer 2 network based on the OP Stack, which was launched on the mainnet on August 16.
10）Zora Network
On June 22, 2023, the NFT trading market Zora launched the Zora Network, a Layer 2 network based on OP Stack. Zora hopes to provide users with a faster and cheaper trading experience by adopting Layer 2 technology.
11）Loot Chain
On June 28, 2023, the Loot ecosystem project Adventure Gold DAO adopted OP Stack to build the Layer 2 network Loot Chain.
12）Pacific blanket
On July 12, 2023, the ZK-based Layer 1 public chain Manta Network launched the OP Stack-based Layer 2 network Manta Pacific. Manta Pacific uses the Celestia data availability layer to provide security, reduce gas fees, and achieves scalability through Caldera's improved OP Stack.
13）Mantle Network
On July 17, 2023, Mantle Network, a modular Ethereum Layer 2 network built on OP Stack and supported by BitDAO and Bybit, launched the mainnet Alpha version. After six months of development and testing, it has processed more than 14 million on-chain transactions.
14) Even
On July 17, 2023, Celo development organization cLabs initiated a proposal to transform Celo from an independent EVM-compatible Layer 1 blockchain to an Ethereum Layer 2 based on OP Stack, which was voted through on July 31.
15) Age
Aevo, a decentralized options exchange developed by Ribbon, is built on Aevo Chain, which runs on the OP Stack.
On July 25, 2023, the proposal of Ribbon Finance to merge into Aevo was passed.
16）Public Goods Network
On July 25, 2023, the Public Goods Network (PGN), a Layer 2 network based on OP Stack and supported by Gitcoin and others, went online on the mainnet and supported payments in recent Gitcoin donations.
17) Lyra Finance
On July 28, 2023, the options protocol Lyra Finance announced that it will launch version V2 and launch Lyra Chain built on OP Stack, aiming to support high throughput, low latency and low-cost transaction execution.
18)Mode Network
On August 7, 2023, Mode Network, built on OP Stack, launched its public testnet. The network designed a contract revenue sharing incentive mechanism at the protocol layer to expand the applications and users of the Mode blockchain.
19）Debank
On August 11, 2023, DeBank launched the DeBank Chain testnet built on OP Stack, and plans to launch the mainnet in 2024 to provide users with a more efficient and economical trading experience.
We have seen that 19 projects have joined or plan to join the OP Stack ecosystem, covering multiple fields such as exchanges, public chains, clients, NFTs, games, derivatives, etc.
3. Advantages of OP Stack
In just less than a year, so many projects have chosen OP Stack to build L2 networks. Especially since April this year, multiple projects have announced to join OP Stack every month. So, what are the advantages of OP Stack?
High degree of openness and active developers
The degree of openness of the license of the open source stack is indeed a key factor affecting its widespread application. Optimism adopts the MIT license, while zkSync, Arbitrum and Starknet use the Apache License 2.0. Both licenses have a high degree of open source, but MIT is more concise and free, and can be said to be "do whatever you want". In contrast, the Apache license has some restrictions in terms of compatibility, trademark use, patent authorization and liability limitation. Although it is conducive to product commercialization, it may actually become a constraint and restriction.
Optimism is highly compatible with the Ethereum Virtual Machine (EVM), and as can be seen from its 11,994 commits and 2.3k forks (number of active developers) on GitHub, there is a lot of code updates and integration work behind it. This data even exceeds Arbitrum and far exceeds zkSync and Starknet.
The high degree of openness and active developers prove that it is a very active, developed, widely recognized, and strongly consensus-building development project.
One-click chain launch, modularization
OP Stack is a set of components that provide modular blockchain networks. Using it, developers can easily launch a new Layer 2 network.
The ultimate vision of OP Stack is to build an Optimism Superchain that integrates separate L2s into an interoperable combined system. OP Stack may make the release of L2 as simple as deploying smart contracts on Ethereum today, and make "one-click chain release" as simple as "one-click coin release" now. Maybe in the near future we only need one click to release the blockchain.
In OP Stack, modules are pluggable bits of data that allow developers to switch between different execution layers, consensus layers, settlement layers, and data availability layers as needed. Superchain's "standardization" means reaching a consensus on the standards for these modules, and everyone can implement them according to this standard. This standardization allows developers to develop and customize the functions of the chain more flexibly. At the same time, Superchain is completely open source, and anyone can develop, iterate, and submit requests for free to drive the development of the entire network. This openness and collaboration helps accelerate innovation and promote the development of the blockchain ecosystem.
OPStack is a six-layer architecture, from bottom to top: data availability layer, sorting layer, derivation layer, execution layer, settlement layer and governance layer. Each layer is a modular API that can be combined and decoupled as needed. This architectural design makes OPStack highly flexible and scalable, able to meet different business needs and application scenarios.
By combining different modules together, a blockchain solution that suits specific needs can be built. At the same time, since each layer is an independent module, one layer can be updated or replaced without affecting other layers, which improves the maintainability and upgradeability of the system.
Against the backdrop of L2’s powerful narrative, OP Stack’s one-click chain launch and customizable modularity make L2 creation simpler, more convenient, and more economical, which has led to OP Stack’s leapfrog development.
IV. Future Prospects of OP Stack
Currently, OP Stack has been more widely adopted, and many star public chain projects have joined OP Stack, such as Coinbase, opBNB, Zora, Worldcoin, etc., which not only gives the Optimism super chain ecosystem a strong brand endorsement, but also provides a source of vitality for the continued growth of users, transaction volume, etc. in the future.
Although OP Stack has a first-mover advantage in L2 expansion, its existing problems cannot be ignored, such as decentralized sorter, waiting period for cross-chain operations, atomic interoperability, etc., and competing products such as Arbitrum Orbit and ZK Stack are also very competitive. OP Stack still has a long way to go in the future. We also see that OP Stack does not exclude other technologies. In the development of OP Stack, we have seen the existence of ZK. The road of innovation and development of OP Stack is still full of vitality and is worth looking forward to.
The superchain built on OP Stack will merge the Optimism mainnet and other chains into a unified OP chain network (i.e., the chain within the superchain), bringing a wider block space to the Ethereum ecosystem. Ethereum's unlimited block space is a key step towards large-scale adoption. If the superchain built on OP Stack can become a reality, it will be a huge boost to the development of the entire Ethereum ecosystem.