How does Optimism's Rollup really work?

At Paradigm, we work very closely with the companies in our portfolio. That work includes diving deep with them in their protocol design and implementation. We recently talked about the mechanics of Optimistic Rollup (OR), the dominant solution for scaling Ethereum while preserving its flourishing developer ecosystem. In this post, we do a deep dive on Optimism, the company which invented the first EVM-compatible Optimistic Rollup protocol (Disclosure: Paradigm is an investor in Optimism). This article is for everyone who is familiar with Optimistic Rollup as a mechanism and wants to learn how Optimism’s solution works, and evaluate the proposed system’s performance and security. We explain the motivation behind each design decision and then proceed to dissect Optimism’s system, along with links to the corresponding code for each analyzed component. Ethereum has developed a moat around its developer ecosystem. The developer stack is comprised of: Since Optimism is targeting Ethereum as

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