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these fees can soar even higher, making Ethereum prohibitively expensive for many users [37], [38],
[39], [40].
In contrast, Optimistic Ethereum offers a more scalable and cost-effective solution. By executing
transactions off-chain and posting only the essential data on-chain, Optimistic Ethereum significantly
lowers the gas fees. For example, a standard token transfer on Ethereum might cost around $20 during
peak times, while the same transaction on Optimistic Ethereum could cost less than $1, demonstrating
a cost reduction of over 90% [41]. Moreover, the enhanced scalability of Optimistic Ethereum allows
it to process thousands of TPS, compared to Ethereum’s limited 15-30 TPS, thereby alleviating
congestion and further stabilizing gas prices.
These scalability improvements make Optimistic Ethereum a highly attractive option for developers
and users seeking a more efficient and cost-effective blockchain environment, particularly for
applications that require high transaction volumes and quick finality. The integration of Optimistic
Ethereum into the broader Ethereum ecosystem reflects ongoing efforts to address the fundamental
scalability issues of blockchain networks while maintaining the security and decentralization that are
the hallmarks of Ethereum.
Table 3: Differences between Ethereum L1 and Optimistic Ethereum L2.
Feature
Ethereum Mainnet
Optimistic Ethereum
Transaction Costs
High transaction fees due to
congestion; average gas fees can
range from $10 to over $50 per
transaction during peak times.
Significantly lower transaction
fees; typically 10-100x cheaper
than Ethereum mainnet, with
fees often below $1 per
transaction.
Scalability
Limited
scalability
with
a
throughput of approximately 15-30
TPS.
Enhanced scalability, capable
of handling thousands of TPS
due to off-chain execution and
data aggregation on-chain.
Consensus Mechanism
Proof of Stake (PoS) as part of
Ethereum 2.0 upgrade; previously
Proof of Work (PoW).
Inherits
security
from
Ethereum
mainnet;
uses
optimistic rollups with fraud
proofs
for
transaction
validation.
Transaction Finality
Relatively
slower
transaction
finality; dependent on network
congestion and gas prices.
Faster transaction finality due
to
off-chain
processing;
however,
it
includes
a
challenge period for fraud
proofs, which can impact
finality time but is being
optimized.
Gas Price Volatility
Highly volatile due to network
demand; can spike during periods of
high activity (e.g., during popular
NFT launches or DeFi activity).
More predictable and stable gas
fees;
less
influenced
by
mainnet congestion, benefiting
from
Layer-2
scalability
improvements.
Security Model
Directly secured by Ethereum's
blockchain; high level of security
through decentralized PoS.
Secured by Ethereum’s Layer-
1; relies on fraud proofs to
ensure
correct
off-chain
execution, with the mainnet
providing
ultimate
dispute
resolution.