New to the world of Optimism (OP)? You’ve come to the right place to collect information and learn! If you want to dive right in, scroll down to the section about how to buy Optimism (OP), where you can start right away!
Cryptocurrency is a type of digital money. Unlike traditional currencies such as Canadian dollars or Euros, cryptocurrencies like Optimism (OP) operate on decentralized networks based on blockchain technology. “Decentralized” means that the network operates without a central authority or intermediary. There are several aspects of Optimism (OP) and other cryptocurrencies that qualify them as decentralized. These aspects include the use of blockchain (distributed ledger) technology that no single person controls, peer-to-peer transactions that don’t involve an intermediary, consensus mechanisms to validate and record transactions, and open-source code that allows anyone to scrutinize records of transactions.
If you’re a complete novice, this explanation may still be opaque to you, but we encourage you to investigate the basics further. You’ll soon catch on, and your confidence will grow steadily.
Optimism is a Layer-2 scaling network for Ethereum. Its goal is to process more transactions and reduce transaction costs. Optimism is more than a blockchain technology; it consists of companies, communities, and individuals coming together to incentivize public goods and create a sustainable future for Ethereum. Optimism is built on four key principles:
Optimism uses Optimistic Rollups, a process that bundles multiple transactions and submits them in batches. This also allows transactions to be processed on Optimism’s blockchain while relying on Ethereum for consensus, finalizing transactions, and ensuring data is accessible. As a result, Optimism makes Ethereum more accessible and efficient for users and developers, contributing to a smoother and more scalable blockchain experience.
Optimism Foundation, formerly known as Plasma Group, was established in January 2019 as a non-profit organization researching Ethereum scalability. In June 2019, the Optimism Foundation used ideas from Vitalik Buterin’s rollup design in developing the Optimistic Rollup. In September 2020, Optimism kicked off a phased testnet for its proposed scaling solution. Optimism summed up its performance in its first year before introducing its mainnet, integrating multiple centralized security measures to safeguard initial users. Finally, on December 16, 2021, Optimism announced the launch of its public mainnet.
Optimism is committed to building an environment that provides value for its three main populations: token holders, contributors and builders, and users and community members. Token holders benefit from the productive redistribution of sequencer revenue. Contributors and builders are rewarded with value from public goods funding. Users and community members receive value through continuous airdrops and project incentives.
The Optimism crypto coin (OP) is central to the network’s ecosystem.
OP tokens serve as incentives for different activities in the ecosystem to maintain its health, security, and development. This includes rewarding developers who build on Optimism, liquidity providers in Optimism’s DeFi protocols, and other individuals who engage actively in the network.
Optimism’s governance system is what distinguishes it from other decentralized blockchain applications. While most decentralized blockchains have a governance structure that involves voting rights, Optimism’s system is unique.
Here’s how its governance works. The Optimism governance structure, known as the Optimism Collective, resembles the structure of the National U.S. Congress. It is divided into two houses — the Token House and the Citizen House. The Citizen House votes on public goods funding, while the Token House votes on technical decisions such as network issues or future upgrades.
Additionally, staking OP tokens helps secure the network and keep participants engaged in its economic activities. Participants earn rewards such as transaction fees or other incentives. Optimism crypto holders may also benefit from lower transaction fees on the network.
Optimism crypto boasts a market cap exceeding USD 1.2 billion, with a total token supply capped at 4.29 billion. The circulating supply stands at over 716 million tokens, experiencing an inflationary rate of 2%. Out of the total token allocation, 20% is dedicated to future public goods funding, 17% to investors, 19% to core contributors, and 25% to the ecosystem fund. The remaining 19% is allocated for airdrops, with 5% allocated for the initial airdrop and the remaining 14% reserved for future airdrops.
The initial airdrop was distributed to individuals who satisfied several requirements by March 25, 2022, such as engaging in token swaps on Optimism’s blockchain and participating in governance proposal voting.
Optimism price has seen a major fluctuation since its launch. It peaked at an all-time high of USD 4.84 on March 6, 2024, before retracing by 73.7%. In contrast, OP price also dropped to an all-time low of USD 0.4022 around June 18, 2022.
Want to jump straight into learning how to buy some Optimism (OP)? Here’s our quick-start guide!
Coinsquare is a leading cryptocurrency trading platform that was started by Canadians for Canadians in 2014. Coinsquare is trusted by hundreds of thousands of Canadians for their Optimism (OP) trades and has processed over $8 billion in trading volume to date.
This crucial step helps protect your identity and your Optimism (OP) transactions. It also ensures that Coinsquare meets its regulatory obligations. You will need to submit some personal information, including your name, address and phone number, as well as a scan of a government-issued identity document such as your driver’s license or passport. Rest assured that this data will be kept in the strictest confidence. You will also need to answer a few questions to determine your risk profile.
These funds are what you’ll use to buy your Optimism (OP). You can transfer money directly to your account for free using Interac e-transfer, or you can wire transfer the funds from your bank account.
Choose the currency you want to use to buy your Optimism (OP). For now, you’ll be using CAD because that’s what you have on deposit in your Coinsquare account, but later on, you might use USD or another cryptocurrency for your purchase. Once you’ve selected the currency, you can go ahead and purchase your Optimism (OP)!
You won’t be able to spend your Optimism (OP) at all Canadian retailers, but the list of stores that accept Optimism (OP) and other cryptocurrencies is always growing. Keep an eye on the news about Optimism (OP) and ask your favourite retailers about their policies.
All cryptocurrencies carry some level of risk, just like other volatile investments. It's essential to thoroughly research the token you plan on investing in and understand the risks before making any decisions. Remember, you should never invest more than you can afford to lose.
You can transact on Coinsquare in numerous currencies other than Optimism (OP), including Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Bitcoin Cash (BCH), Cardano (ADA), Dogecoin (DOGE), Chainlink (LINK), Polygon (MATIC), Shiba Inu (SHIB), USD Coin (USDC), XRP, and many more.
It is legal to buy and sell Optimism (OP) in Canada, but Optimism (OP) itself is not legal tender, meaning that it is not issued by the government or controlled by them. Cryptocurrency trading platforms are also legal in Canada, but be careful to choose one that is in good standing and has not been banned or isn’t allowed to operate in Canada. As a leader in the cryptocurrency trading space, Coinsquare is dedicated to complying with all federal and provincial regulations for cryptocurrency trading; we are held to the highest standards of any financial institution in Canada, so you can have confidence in the transactions you complete on our platform.
If you want to get more into the world of cryptocurrency, you can engage in additional activities.
You can purchase other cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), Bitcoin Cash (BCH), Cardano (ADA), Dogecoin (DOGE), Ethereum Classic (ETC), Polygon (MATIC), Shiba Inu (SHIB), USD Coin (USDC), XRP, and many more.
Get information and news updates in Coinsquare’s real-time news feed. On the website and in the mobile app, you can also check on the current market prices for Optimism (OP) and other cryptocurrency products, look at the trading history of Optimism (OP), and learn more about topics related to cryptocurrency.
Cryptocurrency has been criticized for its environmental impact, and not without reason. Traditional cryptocurrency mining, especially for coins like Bitcoin, has been associated with high energy consumption due to the power required for mining operations.
However, the cryptocurrency industry is sensitive to these concerns and is looking for ways to make cryptocurrency more sustainable. Here are some changes that some blockchains have undertaken to mitigate the impact of cryptocurrency on the planet:
Newer cryptocurrencies are being designed with sustainability in mind from the start instead of making changes after the fact. While these advancements show a commitment to sustainability and minimizing environmental impact, there is still a great deal of work to be done. Keep an eye on the news about the evolving cryptocurrency landscape.
Confirm your identity and answer a few onboarding questions.
Add funds to your account via e-transfer, wire transfer, or from another crypto account.
Choose Optimism (OP) from the list and select the currency you want to use.
Complete your Optimism (OP) purchase.
If you want to learn more about Optimism (OP) and the cryptocurrency world, getting involved with the Optimism (OP) community is a great idea. Here are some ideas about how you can follow trends, meet other investors, and contribute to the growth of the Optimism (OP) space:
If you have technical or business skills, you can also engage with development teams, contribute your skills to the Optimism (OP) project, or participate in governance by helping with decision-making and setting future directions.
Coinsquare offers a variety of services for all your Optimism (OP) needs.
Coinsquare Wealth provides more customized services from certified Wealth Directors. Although our Wealth Director don’t provide investment advice, they help our clients navigate the cryptocurrency space so they can get more out of it and avoid obstacles. Coinsquare Wealth also offers other advantages, such as same-day settlement in CAD or USD and enhanced liquidity for large trades/
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Coinsquare has been in business in Canada since 2014 and was developed by Canadians for Canadians. We are confident that we can provide you with the best Optimism (OP) buying experience in the country. Join us today!
