[WATCH] Uniswap V3 starts with optimistic Ethereum and offers up to 10x transaction cost savings

Uniswap has announced that its version 3 is now available on Optimistic Ethereum.

Optimistic Ethereum is a Layer 2 sidechain in which developers can move their smart contracts from Ethereum to benefit from faster computing times.

However, this upgrade is not a full version and is still being tested.

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SEE ALSO: Layer 2 solution, Arbitrum, is coming to UniSwap v3, confirms UniSwap CEO

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About the start on his blog, UniSwap said:

“Today’s launch is the first step in helping DeFi applications compete with and outperform traditional web user experiences.

Optimism’s roadmap promises further powerful improvements, including additional scaling, smart wallet EOAs (no “permits”, pay gas in every token) and decentralization of the transaction sequencing process. “

– UniSwap

Gas spending and slow transactions on Ethereum are a recurring challenge for users looking to leverage decentralized apps. Sometimes the fee associated with a transaction can be higher than the transaction itself.

Several solutions have been introduced to address this problem.

Some solutions, like sharding, involve adjusting the main ethereum chain, while others are off-chain. Off-chain solutions are commonly referred to as “Layer 2 Scaling”.

Optimistic Ethereum is a Layer 2 scaling solution that Ethereum developers can use to migrate their smart contracts to the Optimistic Virtual Machine without breaking them. The actual scaling platform is called optimism and it uses the roll-up technique.

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💜 We are happy to announce the alpha launch of Uniswap v3 on the Optimistic Ethereum (OΞ) mainnet in partnership with @OptimismPBC!

🌐 This is a critical step in scaling DeFi applications and delivering a user experience that can rival traditional web apps. Https://t.co/Of3QmubFth

– Uniswap Labs 🦄 (@Uniswap) July 13, 2021

A rollup is a sidechain aggregation of transactions in a smart contract that will take place in the main chain at a specific point in time. It is known as a roll-up because it bundles many transactions that are to be transferred to the mainchain.

According to Ethereum.org:

“Rollups do the transaction execution outside of Layer 1 and then the data is posted to Layer 1, where a consensus is reached. Since transaction data is contained in Layer 1 blocks, rollups can be secured by native Ethereum security.

Optimistic rollups are parallel to the main Ethereum chain on Layer 2. They can offer improvements in scalability as they do not perform calculations by default. Instead, after a transaction, they propose the new state to the mainnet or “notarize” the transaction. “

– Ethereum.org

Some of the benefits Uniswap users can enjoy from this step are:

  • The gas costs with Optimism are 35 times cheaper than with Ethereum
  • Optimistic rollups publish status changes in the main chain with minimal inspection and fraud checking, which allows for additional speed
  • Uniswap estimates that Optimistic Ethereum will offer up to 10x cost savings based on usage statistics in the main chain

According to Uniswap, developers can use the Optimism Gateway to move their assets to the Optimistic Ethereum Network.

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LITERATURE RECOMMENDATIONS: Approximately 90% of all on-chain activity on Ethereum came from UniSwap, Dapp report dated May 2021 revealed

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