Popular Ethereum scaling solution Optimism has announced a $150 million Series B funding round co-led by Andreessen Horowitz (a16z) and Paradigm at a total valuation of $1.65 billion.
According to a blog post from Optimism, the layer 2 (L2) solution has saved users of the Ethereum network over $1 billion in gas fees. The funding will be used to expand the Optimism team and go toward working on reducing network fees even further.
Fees on the Optimism network were reduced by a cumulative 30% last year. The team is now contributing work toward an Ethereum Improvement Proposal (EIP-4844) for Shard Blob Transactions, which may potentially reduce Ethereum network fees by up to 100x in the near future.
With the potential to decrease fees by 100x for all rollups, and a practical path to implementation, we strongly support this EIP.
But how, you ask?
— Optimism ✨ (@optimismPBC) March 4, 2022
L2 solutions like Optimism have grown massively in popularity due to the increased demand for nonfungible tokens (NFTs), smart contracts and decentralized finance (DeFi) applications on the Ethereum network, which in turn congests transaction processing and drives up gas fees.
Optimism works by employing “optimistic rollups,” which aggregates transactions outside of the Ethereum blockchain and provides benefits of reduced slippage, decreased transaction costs and vastly improved transaction speeds.
According to data tracker, L2Beat, the total value locked (TVL)…