Rollups
What is a Rollup?
Rollups are a Layer 2 scaling solution designed to enhance the scalability and efficiency of blockchain networks. Rollups rely on another Layer 1 blockchain (eg. Ethereum) for settlement, while providing better scalability than the parent blockchain.
How Rollups Work
Bundling Transactions
Rollups aggregate multiple transactions into a batch transaction. This process occurs on a separate Layer 2 blockchain, a secondary framework built atop the primary (Layer 1) blockchain.
Off-chain Execution
The execution of transactions is performed off-chain in rollups, reducing the data that needs to be posted to the main blockchain. This is particularly beneficial in congested blockchain networks where high transaction volumes can lead to slower processing times and higher fees.
Posting Data to L1
Once the transactions have been bundled and executed off-chain, a single transaction or batch summary is posted to the main (Layer 1) blockchain. This action retains the security features of the primary blockchain while significantly reducing the data load, as only the rolled-up transaction is recorded on-chain.
Why Choose A Rollup?
If you wish to launch a custom Ethereum Virtual Machine (EVM)-compatible blockchain, L2/L3 rollups are probably the best solution.
Rollups offer several benefits for blockchain developers and users
- Scalability: By bundling transactions and executing them off-chain, rollups can process more transactions than the underlying Layer 1 blockchain.
- Lower Fees: Rollups reduce the amount of data posted on-chain, leading to lower user transaction fees.
- Faster Transactions: With off-chain execution, rollups can process transactions faster than the main blockchain, providing a better user experience.
- Security: Rollups inherit the security properties of the underlying Layer 1 blockchain, ensuring that transactions remain secure and immutable.