48
2) L2 Execution Costs, which are the fees for processing the transaction directly on Optimism
(Layer 2).
The following mathematical formula calculate transaction costs:
ππ ππ₯ πΉππ = [πΉππ
ππππππ
Γ πΏ1
πΊππ πππππ
Γ (πΆππππππ‘π + πΉππ₯ππ ππ£ππβπππ)] + {πΏ2
πΊππ πππππ
Γ πΏ2
πΊππ ππ ππ
}
On Optimism, instead of paying full Layer 1 Ethereum gas fees for the entire transaction, you only
pay Layer 1 gas fees for a small portion that needs to be posted to Ethereum in a transaction batch
(L1 Gas Used). The actual execution of the transaction occurs on Optimism (Layer 2). Optimism
uses the same amount of gas as the transaction would require on Ethereum (Gas Used if on
Ethereum), but the gas price on Optimism is significantly lowerβjust 0.001 gweiβmaking it far
cheaper than Layer 1.
5.5.1 Gas Costs in Optimistic Ethereum
Optimistic Ethereum uses optimistic rollups, which offload most of the computation off-chain and
only submit batched transactions to Ethereumβs Layer 1 for final settlement. This allows for lower
gas fees compared to Ethereum mainnet. However, periodic interactions with the main Ethereum
network (e.g., for finalizing transactions) still incur Layer 1 gas costs.
Table 4: Gas costs in Ethereum vs Optimistic Ethereum Blockchain.
TRANSACTION
GAS COST
(OPTIMISTIC)
GAS COST
(ETHEREUM L1)
SAVINGS
CONTRACT
DEPLOYMENT
200,000 gas
1,500,000 gas
~85%
FUNCTION
EXECUTION
50,000 gas
300,000 gas
~83%
PPA CREATION
(CORPORATE)
120,000 gas
500,000 gas
~76%
PPA CLAIM
80,000 gas
250,000 gas
~68%
Table 4 illustrate that Optimistic Ethereum offers a substantial reduction in gas costs due to the off-
chain execution of most transactions. The main expense lies in the final verification and settlement
on Ethereumβs Layer 1, which still incurs higher fees.