In the blockchain industry, Ethereum has firmly established its dominance. Initiated with the creation of its genesis block on 30th July 2015, Ethereum introduced smart contract ability in the bitcoin algorithm Enjoying the “first-mover advantage,” Ethereum remains at the helm of Layer-1 chains.

However, it’s not without its challenges. Between 2020 and 2021, Ethereum experienced a surge in its Monthly Active Users (MAUs), witnessing a rise from 2.3 to 8.3 million. This growth led to a tenfold increase in daily average gas prices. Currently, executing a USDT transfer on Ethereum costs between $1.5 and $3. In contrast, performing the same action on the Fantom network costs a mere $0.0020. The resultant fee disparity has become a major concern for perpetual DEXs where there is a high number of transactions.
Such limitations prompted the development of Layer-2 (L2) solutions. L2s streamline processes by bundling multiple transactions off-chain and consolidating them into a singular transaction on the main chain — L1. This not only minimizes gas fees but also increases transaction speeds.
One of the promising L2 solutions is Optimism, with which the concept of super chain is associated.

What is Optimism?

Optimism is an EVM (Ethereum virtual machine) compatible Layer 2 (L2) scaling solution.
Central to Optimism’s working mechanism is its use of rollups.
Rollups process transactions (i.e., ‘rolling up’ or compiling a bunch of transactions) off-chain on another, faster blockchain (known as a layer 2). Then, it ports the transaction data back to the parent blockchain (the layer 1 or mainnet) at a fraction of the price.
In other words, Rollups take dozens of transactions out of the mainnet and process them off-chain. Then convert them into one single transaction, and submit them back on a parent chain. This is why rollups are also called ‘off-chain scaling solutions.’ The fee to pay for this transaction is shared between all the users.
When a transaction occurs via Optimism, it remains in constant communication with Ethereum’s Layer-1 leveraging the security infrastructure of Ethereum. All of this is achieved without any alterations to Layer-1. Simplistically, Optimism reduces the transactional strain on Ethereum, removing network congestion.

Optimistic rollup

There are two types of rollups: i) Optimistic and ii) Zero-Knowledge. Optimism uses Optimistic rollups.


The Optimistic rollup is, true to its name, optimistic. It operates on the presumption that its bundled transactions are legitimate. In essence, the actors are assumed to behave in good faith, so all the published transactions to layer 1 will be considered valid until proven corrupted.
By making positive assumptions upfront, the system saves transaction processing time, bypassing redundant confirmations and validations.
Should there be a need to roll a transaction back to the Ethereum mainnet, Optimism doesn’t demand ironclad proof upfront as it believes that transactions are valid. However, there exists a seven-day window –’Challenge Window’ — wherein the authenticity of a state commitment can be contested. Should doubts arise within this period, the ‘Fault Proof’ system (previously termed the ‘Fraud Proof’ system) examines the contested commitment.

What is OP stack?

OP Stack, launched in October 2022, is the set of open-source software over which blockchains such as Optimism are based. A technology stack is a set of technologies that are stacked together to build any application.
The OP Stack functions as a unified and open-source set of software components that not only fuels Optimism’s Layer-2 rollup but also offers a template for creating a spectrum of new Layer-2 blockchains.
The dynamism of the OP Stack was further enhanced on June 6, 2023 when Optimism introduced the Bedrock upgrade, which brought with it a slew of improvements, including reduced transactional fees, minimal deposit timelines, and increased node performance.
The sudden rise of Base Chain, developed by Jesse Pollock, can be attributed to its construction using Optimism’s tech stack. But base is just the tip of the iceberg. There could be emergence of thousands of Layer 2 chains in the future. So, with this proliferation, the question arises — how can these chains cohesively exist and operate?

This is where the Superchain steps in.

What is Superchain?

Just as the bedrock lends foundational strength to our earth, the Bedrock upgrade provided a stable platform for Optimism.
But what’s next for Optimism? It’s a Superchain.
Aptly named OP Chains, these L2 chains share security, a communication layer, and an open-source technology stack (the OP Stack).


In the human body, individual cells make up our organs. These organs then form an organism, and a group of organisms creates a society. The progress of crypto somewhat mirrors this structure. Bitcoin could be seen as a “single cell organism,” a unique chain with a sole function. With Ethereum, the ecosystem evolved into a “multi-cell organism” by adding a layer of programmability with smart contracts. Then came tokens, which are smaller units, and now, with layer twos, the idea of multiple chains or “organisms” emerges.
The superchain is like a “society” of chains coming together. If each crypto chain was seen as an individual entity, the superchain is a harmonious collaboration of these chains. Just as many individual organisms make up a community, many chains can come together to create a superchain.
The superchain’s core purpose lies in scaling. To bring a billion people onboard the crypto world, we need more than a few chains. A superchain ensures that these individual chains can communicate and work cohesively as a unit.
Fundamentally, Superchain will be a composite of multiple chains constructed on the OP Stack, merging its OP Mainnet with various L2 chains. This innovative blueprint empowers developers to not just target a specific chain, but the Superchain as an overarching entity.

The Law of Chains

At the heart of the superchain lies the ‘Law of Chains’ — a social construct designed to incorporate the principles of blockchain into a collective of multiple chains.
Previously, optimism governance was limited to one chain: Op mainnet. However, with the introduction of the Superchain, this governance now extends to a protocol shared by many chains, including Base and others. It’s essentially a standard body that, while ensuring a shared protocol, also acts as a governance entity, preserving the independence of each chain.
To understand this better, consider the Law of Chains as a mix between the technical standards established during the internet’s early days and the governance framework of nation-states.
Stakeholder Identification: The Law categorically identifies the stakeholders of the Superchain. These include chain governors, who drive the chains; chain servicers, who offer sequencing services; and, most importantly, the users.
Protection and Rights: Drawing parallels with the Bill of Rights, the Law lays down guidelines to protect each stakeholder’s interests. It dictates how governance decisions should consider the effects on every stakeholder, ensuring their rights are never compromised.
Balancing Sovereignty and Cohesiveness: Chains like Base seek to preserve their open and permissionless nature by joining the Superchain. The Law ensures that while chains get the benefit of a larger structure, they retain their economic and social sovereignty. In essence, it captures the dynamic tension between a global governance structure and the autonomy of individual chains.

Benefits of Superchain

Incentive for individual chains: Primarily, a superchain offers a standardized and secure platform. If the crypto community believes in a particular security model, it’s beneficial for a chain to be part of that collective. This ensures that it operates under the best practices and upholds the highest standards.
Homogenity: The uniformity, or ‘homogeneity’, serves as the foundation for the Superchain to materialize. It’s similar to drawing the first two circles in an owl sketch; fundamental yet important. This concept holds power because a homogeneous block space means that these chains can upgrade together.
Improve robustness of code base: As we see more and more L2s, the very foundation — the standardized codebase — undergoes continuous refinement. This cumulative effort not only streamlines the code but makes it more resistant against potential vulnerabilities.
Improved UI/UX: This refers to seamless transactions between different OP chains simultaneously without any need for bridging or intermediaries. Despite the Superchain being made up of multiple chains, the end user gets the experience of using a single, unified chain. In practice, this can lead to improvements such as universal block explorers (as opposed to different explorers for each chain like we currently have such as ETHscanner) and the removal of network switching when using apps (e.g., no dropdown menu inside MetaMask).
What if you are doing multiple transactions across distinct OP chains, and yet, it feels like you’re interacting with one singular chain? That’s the superchain concept. It eradicates the need for intermediaries and bridging. This way, there is no need for different block explorers such as ETHscanner. Furthermore, it also simplifies various interfaces, such as elimination of dropdowns in MetaMask.
Makes devs life easier (literally!): It facilitates Ethereum developers to effortlessly transition to building on OP Chain.

Challenges

Forking without fault-proofs: A contention about Optimism’s strategy is the emergence of chains that do not have fault proofs due to the forking capability of the op stack. Fault proofs, also known as fraud proofs, form the backbone of discussions around Superchain. The question arises: What are the security implications of a blockchain that doesn’t incorporate fault proofs? Can a chain devoid of these proofs still ensure the security of its users’ assets? However, there is a sequential approach Optimism follows: Bedrock first, then the fraud proof module. Once fault proofs are incorporated, every op stack chain that has been forked will have the ability to adopt these proofs.
Consistency: For the superchain to function effectively and serve its purpose, there needs to be a consistency. Every individual chain in a superchain should follow the same standards, protocols, and structures. The challenge lies in ensuring each chain within the superchain is consistent and standardized. These chains should not only share a common understanding but also be upgraded and governed together.
Moreover, the Superchain is currently just a concept and very much a work in progress. In fact, the Optimism team believes it to be a “multi-year (if not decade) journey.

Current developments around OP Stack

Post its much-discussed Bedrock upgrade, Optimism’s L2 rollup chain proudly positions itself as the pioneering member of the Superchain. Not far behind, Coinbase’s Base L2 secured its place as the second entrant. Entities like Worldcoin are actively leveraging the potential of OP Stack. Aevo, a decentralized options exchange, recently unveiled its rollup rooted in OP Stack. Adding to this momentum, BNB Chain has declared its test run for opBNB, a creation that aligns with the OP Stack and is compatible with EVM. One glance, and it’s evident: the OP Stack wave is surging.

Timeline

Drawing parallels to Ethereum’s development, from 2015 to 2019, Ethereum was in its research phase. By 2020, with the rise of Ethereum 2.0, these concepts turned into engineering challenges. When comparing the Superchain’s evolution with Ethereum’s timeline, it appears that Superchain is somewhere in between the research and the engineering phase.