USDC will be cheaper on Ethereum thanks to the launch of the Optimism Layer 2 solution. Optimism is a Layer 2 scaling solution that uses fraud proofs to verify off-chain transactions, significantly reducing gas fees associated with usage of USDC on Ethereum.
Here are some of the benefits of using USDC in Optimism:
Lower gas fees – Gas fees on Optimism are significantly lower than gas fees on Ethereum. For example, a simple USDC transfer on Optimism costs around $0.001, while a similar transaction on Ethereum would cost around $10.
Faster transactions: Transactions on Optimism are processed much faster than transactions on Ethereum. For example, a simple USDC transfer on Optimism typically takes a few seconds to process, while a similar transaction on Ethereum can take several minutes.
Increased security: Optimism uses fraud proofs to verify off-chain transactions, providing a high level of security. Fraud proofs are a type of zero-knowledge proof that allows validators to verify the validity of a transaction without revealing the details of the transaction.
Overall, Optimism is a promising Layer 2 solution that has the potential to significantly reduce the cost and improve the speed of use of USDC on Ethereum.
In addition to Optimism, there are other Layer 2 scaling solutions for Ethereum, such as Arbitrum, Loopring, and ZKSync. All of these solutions use different techniques to reduce gas fees and improve the speed of transactions. As the Ethereum ecosystem continues to grow, we will likely see even more Layer 2 solutions emerge.
