Thursday, January 23, 2025

Economic Advantages of Using OP Stack for Developers and Users

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Choosing the right framework for building and deploying your own Rollup has a direct correlation to the revenue generated by the Rollup. While this article may be different from the all-in guide on the framework you may ultimately end up selecting, let me introduce you to the economic advantages of OP stack, the framework for building Optimistic Rollups. So that you can be more informed about the cost and revenue side of things while making the decision. The article includes the cost from the perspective of both developers and users.

Economics of a Rollup depends on two simple concepts

Inflow and outflow—the money that comes inside the system and the money that goes out. The difference between the two is your profit. Therefore, we want to focus on things that add more money while reducing the costs associated with every operation in the process. Optimistic Rollups Stack helps you do both in the following ways.

As briefly mentioned earlier, OP Stack is an open-source framework for creating custom optimistic Rollups.

For developers, it means lower development costs because the framework is almost ready for you to customize, which means lower time in the development and, hence, lower cost in activities associated with development.

Modularity –

The modular nature of OP Stack Rollups is a golden cherry on top of the open-source framework. Modularity enables developers to pick only the features they need for the most part. Customize almost all parts of Rollups to ensure optimal profits. The vast community of developers, modules, and libraries further reduces costs associated with building and upgrading the system to the newer, more secure version.

Customizability

Being able to customize the Rollup means you have more control over the resources allocated to each aspect, which helps you optimize the costs further.

Customizability also means you have the freedom to choose, build, or customize the revenue model. You can control how and how much money comes into the system via each avenue. You can change the fee structure, customize or optimize sequencer costs, and do a lot more than just stick with whatever the network is capable of.

OP Stack also introduces a vision of Superchains, wherein the Rollups built on top of OP Stack can communicate with each other. This opens up new income avenues for developers or builders. Income sources like cross-platform integrations, partnerships, and collaborations become readily available.

Security

The security of OP Stack Rollups is directly derived from the Ethereum main network. Hence, there are lower expenses in managing the security requirements of your project. All this is done without needing the high infrastructure costs and complexity associated with the alternatives, ZK Rollups atm.

Each of these points also translates to a better user experience via better products, fuelled by a secure, easy-to-implement, and cost-effective system. However, the prominent ones that specifically and directly impact the end users of your products are related to transaction fees.

Lower transaction costs

Optimistic Rollups built using OP Stack significantly reduce transaction costs when compared with the Ethereum main network. They also fare better when compared with ZK Rollups. ZK Rollups require specialized infrastructure to generate their special proofs, while optimistic Rollups are simpler and more cost-efficient.

The lower transaction costs are due to the high number of transactions that can happen per unit of time, which also has two crucial economic advantages: 1. a more efficient system that can process extensive data in a shorter time, and 2. Active user participation without hesitancy usually comes because of high costs.

The high throughput also enables the possibility of highly dynamic pricing models in which product and service costs are based on real-time network conditions.

The end user also benefits from a more accessible entry to the blockchain or Rollup ecosystem with a lower barrier. Small and frequent transactions are encouraged because of a system that is highly competitive and cost-efficient.

Conclusion

It is evident from the economic benefits of OP Stack Rollups that it stands out economically in the competition with clear benefits over the competition for both developers and end users. Reduced development costs, reduced building costs, and reduced operational costs directly translate to a better user experience and, therefore, an active user base.

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