{"id":188547,"date":"2021-02-25T08:57:50","date_gmt":"2021-02-25T05:57:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/andreessen-horowitz-leads-25m-round-for-optimisms-l2-scaling-solution\/"},"modified":"2021-02-25T08:57:50","modified_gmt":"2021-02-25T05:57:50","slug":"andreessen-horowitz-leads-25m-round-for-optimisms-l2-scaling-solution","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/andreessen-horowitz-leads-25m-round-for-optimisms-l2-scaling-solution\/","title":{"rendered":"# Andreessen Horowitz leads $25m round for Optimism’s L2 scaling solution"},"content":{"rendered":"

“# Andreessen Horowitz leads $25m round for Optimism’s L2 scaling solution <\/strong>”
\n<\/p>\n

Optimism, a company providing Layer 2 scaling solutions for Ethereum, has secured backing from venture capital firm and Coinbase investor Andreessen Horowitz, or A16z.<\/p>\n

Andreessen Horowitz, which manages a portfolio worth roughly $16.6 billion, announced<\/a> it is leading Optimism\u2019s $25 million Series<\/a> A investment round on Feb. 24.<\/p>\n

The demand for Layer 2 scaling solutions has escalated amid Ethereum\u2019s surging fees, with average transaction costs pushing as high as $40 on Feb. 23. <\/p>\n

To achieve lower fees, lower latency, and greater throughput compared to transacting on Ethereum\u2019s Layer 1 main net, Optimism uses \u201crollups\u201d to bundle transactions together using smart contracts on an Ethereum side-chain before broadcasting them to the mainnet.<\/p>\n

Ethereum co-founder, Vitalik Buterin, summarized<\/a> that \u201crollups move computation (and state storage) off-chain, but keep some data per transaction on-chain.\u201d <\/p>\n

A16z acknowledged that the growth of Ethereum over the past year or so has been a strong indicator of demand, noting the average capacity of Ethereum blocks has stabilized near 98% \u2014 meaning the network is functionally full.<\/p>\n

\u201cOne lesson from internet history is that when you give developers a powerful new computing platform, they create app<\/a>lications at such a rapid rate that demand consistently outpaces supply. We believe the same will be true for Ethereum,\u201d<\/p><\/blockquote>\n

The announcement notes that A16z spent significant time exploring different Layer 2 scaling solutions before the firm chose to support Optimism. <\/p>\n

The firm emphasized that Optimism\u2019s philosophical and technological alignment with Ethereum was a significant factor informing their decision to back the team, writing:<\/p>\n

\u201cOne of the most exciting things about what Optimism has built is that it can be seen in many ways as an extension of Ethereum \u2014 from its philosophy down to its tech stack.\u201d<\/p><\/blockquote>\n

Optimism is currently completing a phased rollout and will be ready for large-scale production later this year. The platform has been running testnets in partnership with DeFi platform Synthetix, and has started hiring<\/a> to expedite public mainnet launch \u2014 which is now scheduled for March.<\/p>\n