Blockchain & Cryptocurrency Glossary

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Rollups

1 min read
Pronunciation
[rohl-uhps]
Analogy
Imagine a carpool van (the rollup) that picks up many individual commuters (transactions) heading to the same city (Layer 1). Instead of each commuter driving their own car and causing congestion on the main highway, the carpool van takes them all, making just one trip on the highway. The details of who was in the van and where they went are recorded on a manifest (transaction data on L1) that anyone can check.
Definition
A Layer 2 scaling solution that bundles (or 'rolls up') many off-chain transactions into a single transaction that is then submitted to the Layer 1 blockchain. Rollups execute transactions outside L1 but post transaction data to L1, inheriting its security.
Key Points Intro
Rollups are a leading Layer 2 scaling solution that significantly increases throughput by moving computation off-chain while keeping data on-chain (or data availability references).
Key Points

Execute transactions off-chain but post compressed transaction data (or proofs) to the Layer 1 chain.

The Layer 1 chain ensures data availability, allowing anyone to verify the rollup's state or process withdrawals.

Inherit the security of the Layer 1 blockchain.

Two main types: Optimistic Rollups and ZK-Rollups, differing in their verification methods.

Example
Arbitrum and Optimism are well-known Optimistic Rollups on Ethereum. zkSync and StarkNet are examples of ZK-Rollups on Ethereum. They allow users to transact with much lower fees and faster confirmation times than on Ethereum L1 directly.
Technical Deep Dive
Rollups move computation (and state storage) off-chain but keep some data per transaction on-chain (for Optimistic Rollups, it's usually call data; for ZK-Rollups, it's state differences and proofs). This on-chain data availability is crucial, as it allows anyone to reconstruct the rollup's state and ensure its validity, or force withdrawals even if rollup operators misbehave. The Layer 1 smart contract for a rollup maintains the state root of the rollup and verifies proofs (in ZK-Rollups) or handles fraud challenges (in Optimistic Rollups).

Rollups - Related Articles

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