The document discusses the aftermath of the crypto winter, where investors interested in quick profits left, leaving behind those focused on blockchain technology and innovation. One such company, Optimism, which works with layer two technologies to enhance Ethereum's capabilities, has attracted venture capital support despite the challenges in the crypto market. It emphasizes the importance of investing in blockchain technology and companies rather than just cryptocurrencies for long-term success.

1. By: www.ProfitableInvestingTips.com

2. Crypto winter was a difficult time for crypto
enthusiasts and, especially, crypto investors.
Something good happened due to the huge
losses that many incurred. Folks who were
only interested in a quick buck have largely
gone away.

3. Those who remain are more likely to be
interested in blockchain tech in the wake of
crypto winter. They are more likely to want to
make the original crypto dream come true.
That is why many folks are excited about the
bringing on of someone to help Optimism
juice up their layer two services.

4. Venture Capital That Is Staying With the
Blockchain and Crypto

5. Bloomberg writes about a new blockchain
startup. It is backed by Silicon Valley venture
capital firm, Andreessen-Horowitz. These
folks are one of the investment groups that
has stayed in the crypto and blockchain game
despite the huge losses of crypto winter.

6. They are focusing on the tech the underlies the
blockchain. The company in which they are
investing, Optimism, works with layer two
crypto technologies. Layer two tech takes
data from transaction off the top of the
Ethereum blockchain. The data is compressed
and posted back to where it came from. This
results in savings in time and cost.

8. What Is Layer Two?

9. Layer two is blockchain programming that
works to solve three conflicting issues in the
blockchain. The blockchain has three jobs.
These are processing transactions, storing
data, and maintaining consensus and
security. As a rule efforts to optimize one of
these functions generally results in hurting
the others.

10. Layer two is technology that works with a
blockchain, “sitting on top of it.” It relies on
the original blockchain for security but it
speeds up data processing.

11. Hiring Folks With Expertise in the Blockchain

12. Something that is refreshing in the Optimism
story is their choice of a recent hire. They
have taken a guy who used to be head of
gaming at YouTube. The rationale seems to
be to hire someone with blockchain
competence for the job of growing their
business which relies largely on level two
technology. It is noteworthy that the
Coinbase blockchain uses Optimism level two
technology.

14. Being Where the Crypto Users Are At

15. Ryan Wyatt is the new Optimism employee. He
notes that the majority of blockchain users
are within the Ethereum system. This, he
says, is where developers need to focus. The
idea is to optimize crypto, DeFi, NFTs, and
basic crypto trading with an eye on the future
and not the crypto-gambling losses of crypto
winter.

16. We have previously written that we believe
Ethereum with its smart contracts will eclipse
Bitcoin in market capitalization and
importance in the crypto world. Thus working
on ways to optimize Ethereum such as with
layer two tech is an excellent place for a
business to be for the long run.

17. Investing in Crypto After the Fall

18. A lot of folks jumped back into Bitcoin at the
start of 2022. The rationale was that inflation
was going to be licked and crypto would
recover. We think that a smarter investment
move is to invest in crypto and blockchain
tech.

19. Such companies prosper no matter if crypto is
going up or down. It is more like the folks
who made fortunes selling picks and shovels
to miners in the 19th century California gold
fields. The folks who build and control the
tech will be ones who determine the future of
crypto and the blockchain.

20. For more insights and useful information about
investments and investing, visit
www.ProfitableInvestingTips.com.