Popular DEX Aggregator 1Inch Completes Deployment on Optimism Ethereum Network
Cryptocurrency aggregator 1Inch has announced the successful deployment on the Optimism Ethereum mainnet.
The development signals a move from 1Inch that should primarily address rising transaction costs and lengthy withdrawal wait times. 1Inch is hoping to optimize its platform’s performance for users, and this is a great way to go.
Better Performance for 1Inch
As a data aggregator, 1Inch collects data from decentralized exchanges across the industry and offers users insights into the best price to trade. This way, users don’t need to go hopping from one platform to another in search of profit maximization opportunities.
Sergej Kunz, 1Inch’s chief executive, explained that the deployment of Optimism’s mainnet will ensure that the company can dramatically improve transaction speeds.
Optimism Ethereum is a layer-2 scalability solution developed to run with the Ethereum blockchain and improve its performance. Thanks to compatibility with the Ethereum Virtual Machine (EVM), services will be able to connect their infrastructure directly to it.
Optimism works on the principle of optimistic rollups, which batch transactions off the Ethereum blockchain to lighten the chain’s load. From there, the transactions are grouped into a single block and validated at once.
While the technology is promising, there is still some work to be done. The Optimism Ethereum network can process up to 0.6 transactions per second (TPS). Yet, the team is hopeful of its potential. They believe the network’s numbers can jump to about 2,000 throughputs, following a series of tests and infrastructure optimizations.
However, there’s a significant lag with withdrawals. While the network credits deposits almost instantly, withdrawals are only confirmed after a 7-day waiting period. The developers are currently working on a “fast withdraw” feature that will significantly improve that metric.
Can’t Wait for Ethereum 2.0 Anymore
So far, slow transaction time and gas fees have been pressing issues for DeFi. Many top protocols first launch on the Ethereum blockchain, and this popularity has seen the second most valuable crypto protocol battle with scalability issues.
Gas prices have dropped since their highs earlier this year, but this is attributable to the crypto market crash of May that saw the market overrun by the bears. If the current rally stretches on, these prices could be on the rise again pretty soon.
In a bid to address this issue, many decentralized applications (dapps) platforms have begun seeking alternative protocols – giving rise to competing chains like Polkadot, Solana, and the Binance Smart Chain (BSC). Ethereum itself is currently on the way to its Ethereum 2.0 upgrade, which will make the chain more scalable on both fronts. But, Ethereum 2.0 most likely won’t come until 2022. So, dapp projects are left with no choice but to find innovative ways to satisfy their users.
1Inch is just the second DeFi protocol to launch on Optimism Ethereum in as many months. Back in July, UniSwap, the second-largest decentralized exchange, launched its v3 update on the network as well. As expected, the launch was geared at optimizing performance across the board.