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ethereum, the world's second-largest blockchain network, which persistently struggles with scalability issues due to its popularity and increasing network congestion, has had the ethereum.org/2014/09/17/scalability-part-1-building-top”>concept of layer 2 chains in mind since 2014. As more users and decentralized applications (dApps) were launched, transaction costs skyrocketed and processing times slowed down significantly. To address these challenges, developers explored various scaling solutions to optimize Layer 2, with ethereum rollups emerging as one of the most promising approaches.
What are ethereum Rollups?
An ethereum rollup is a Layer 2 scaling solution that processes multiple transactions from the main ethereum blockchain (Layer 1), bundles them into a single transaction, and then sends this packaged transaction back to the main chain. By moving the majority of transaction processing off-chain, rollups can significantly increase the performance of the ethereum network while reducing gas fees for users.
Rollups are designed to maintain the security and decentralization of the ethereum mainnet while improving its scalability. They achieve this by leveraging the main chain for data storage and dispute resolution while executing transactions on a separate layer. This approach allows rollups to benefit from the security of ethereum while minimizing the load on the mainnet.
There are two main types of ethereum rollups: optimistic rollups and zero-knowledge rollups (ZK-Rollups).
Optimistic accumulations
Optimistic rollups operate under the assumption that all transactions are valid until proven otherwise. They process transactions off-chain and send the transaction data to the ethereum main chain along with cryptographic proofs. Anyone who suspects a fraudulent transaction can dispute it during a dispute period. If a transaction is proven to be invalid, the rollup runs a “fraud-proof” test and rolls back the invalid transaction.
Advantages of optimistic rollups:
- Lower computational costs compared to ZK-Rollups
- Easier to implement and integrate with existing ethereum infrastructure
- Supports ethereum Virtual Machine (EVM), allowing for easier migration of dApps
Disadvantages of optimistic summaries:
- Longer withdrawal times due to dispute period (up to 1-2 weeks)
- Potential vulnerability to fraudulent challenges
- Confidence in the availability of honest validators to challenge invalid transactions
Examples of Optimistic Rollup projects include Optimism and Arbitrum.
Zero Knowledge Rollups (ZK-Rollups)
ZK-Rollups use zero-knowledge proofs, a cryptographic technique that allows one party to prove the validity of a statement to another without revealing any additional information. In the context of ethereum rollups, ZK-Rollups process off-chain transactions and generate cryptographic proof, known as SNARK (Succinct Non-Interactive Argument of Knowledge), which is then sent to the ethereum main chain.
Advantages of ZK-Rollups:
- Faster transaction finality as proof of validity can be verified immediately
- Higher performance compared to optimistic rollups
- Greater privacy as transaction details are not revealed on the main chain.
- No dispute period necessary, reducing withdrawal times
Disadvantages of ZK-Rollups:
- Higher computational costs to generate validity tests.
- More complex to implement and integrate with existing infrastructure
- Increased workload for EVM support, often requiring rewriting smart contracts for ZK-Rollup support
Examples of ZK-Rollup projects include Loopring, Starkware, and zkSync.
ethereum rollups represent a promising approach to scaling the ethereum network while maintaining its security and decentralization. As the ecosystem matures and more projects implement rollup solutions, users can expect lower transaction costs, faster processing times, and a more accessible and user-friendly experience on the ethereum network.
