Optimistic Update refers to a strategy used in decentralized systems to enhance user experience and transaction efficiency. Instead of awaiting confirmation from the network before displaying transaction results, it allows the system to assume the best-case scenario. When a user initiates a transaction, the system updates the user’s balance immediately, reflecting the operation as successful. This immediate feedback creates a seamless experience, as users see their desired changes without delays. However, the term “optimistic” highlights the risk involved. If the transaction fails or gets rejected later due to underlying issues, the system must reverse the optimistic update and correct the user’s balance accordingly. This approach prioritizes speed and user satisfaction while still maintaining the integrity of the system through fallback mechanisms.Ultimately, Optimistic Update balances user experience with the necessity of accuracy in processing transactions.