January 16, 2020 Optimism raises a $3.5m seed round from Paradigm and IDEO CoLab to build Ethereum L2 scaling approaches using Optimistic Rollups.

The company comprises the former Plasma Group, who previously worked on Ethereum Plasma implementations in a non-profit structure. The new venture focuses on Optimistic Rollups, an L2 scaling approach with an estimated 10x improvement in transaction throughput by computing state updates off-chain, broadcasting them on-chain, and then allowing a network of challenger nodes to dispute any false states. A variety of early-stage Ethereum applications are utilizing Optimistic Rollups, including Unipig, a version of Uniswap.