Clicky

  • About
  • Coincu
  • Hot topics
  • Random
Wednesday, October 4, 2023
CoinCu News
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Altcoins
    • Blockchain
  • Market
    • Analysis
  • Knowledge
    • Crypto 101
    • DeFi
  • Reviews
    • Exchange Reviews
    • DeFi Reviews
    • GameFi Reviews
    • Casino Reviews
    • Others Reviews
  • Recommended
    • Best Presale Cryptocurrencies
    • Best Bitcoin Casinos
    • Best Bitcoin Gambling Sites
    • Best Web3 Cryptocurrencies
  • Video
  • PR
    • Press Releases
    • Sponsored Articles
    • Advertise
  • Home
  • News
    • Bitcoin
    • Altcoins
    • Blockchain
  • Market
    • Analysis
  • Knowledge
    • Crypto 101
    • DeFi
  • Reviews
    • Exchange Reviews
    • DeFi Reviews
    • GameFi Reviews
    • Casino Reviews
    • Others Reviews
  • Recommended
    • Best Presale Cryptocurrencies
    • Best Bitcoin Casinos
    • Best Bitcoin Gambling Sites
    • Best Web3 Cryptocurrencies
  • Video
  • PR
    • Press Releases
    • Sponsored Articles
    • Advertise
No Result
View All Result
CoinCu News
No Result
View All Result
Home Knowledge

Rollups Technology: Scaling Solution, Reducing Transaction Fees On Ethereum

Harold by Harold
1 year ago
in Knowledge
Reading Time: 6 mins read
390
91
SHARES
3k
VIEWS
Share on Twitter

Solana Validator Health Report Shows Sustainable Growth

Thailand FinTech Festival: A Phenomenal Showcase, Uniting the FinTech Sector’s Leading Innovators

Rollups technology helps to increase scalability as well as reduce transaction fees for transactions taking place on the Ethereum network. So how do they work? Let’s learn about this solution with CoinCu.
Rollups Technology: Scaling Solution, Reducing Transaction Fees On Ethereum

What are rollups technology?

Simply put, rollups are one of many solutions to help with scaling for Ethereum (ETH). They do this by externally pooling thousands of transactions together, rolling them up into a block before sending it to the mainnet for writing to the Ethereum blockchain.

Thanks to this technology, the Ethereum network instead of having to process each of those thousands of transactions, now only has to process a single transaction.

Rollups Technology: Scaling Solution, Reducing Transaction Fees On Ethereum
Rollups Technology: Scaling Solution, Reducing Transaction Fees On Ethereum 6

Ethereum is in the process of updating to Ethereum 2.0. In theory, if this update is successful, the Ethereum network itself should solve its current scalability problems and high gas fees. At that point, other scaling technologies similar to rollups will no longer be useful.

However, Vitalik Buterin thinks that scaling solutions like rollups technology will still play an important role on the blockchain even after Ethereum 2.0 is implemented.

How do rollups technology work?

The essence of rollups technology are to aggregate small transactions and transfer them to the Ethereum mainnet in a single transaction.

However, based on technical characteristics, they are also divided into two different types: optimistic rollups and zero-knowledge rollups. Still based on the method of scrolling data as above, but corresponding to each of these types, there are also some basic differences. Specifically:

  • Optimistic rollups: This form will ensure these rolled data are valid, and there is no fraud in the blockchain by hiding transactions. To be able to hide these transactions, optimistic rollups create a dispute-resolution mechanism. This mechanism allows anyone to contest the legitimacy of the transaction. If suspicious transactions appear, they will be sent separately directly to the Ethereum network for inspection and verification, thereby resolving disputes. Some solutions are built based on this mechanism such as Optimism (OP), Arbitrum, or Boba network…
Rollups Technology: Scaling Solution, Reducing Transaction Fees On Ethereum
  • Zero-knowledge rollups (also known as zk-rollups): This form has a completely different operating structure than optimistic. It relies on a piece of code called a zero-knowledge proof, which allows information to be proven without disclosing it. In crypto, these are called zk-SNARKs, referring to an additional piece of cipher called “succinct non-interactive argument of knowledge”. This method bypasses the contention system inherent to optimistic rollups because the “SNARK” bit only allows valid transactions to be uploaded to the rollup. Some solutions follow this mechanism such as Loopring, Immutable X, or ZKSync…
Rollups Technology: Scaling Solution, Reducing Transaction Fees On Ethereum

Who’s building rollups technology?

Optimistic rollups:

  • Optimism: a cheap layer-2 system for Ethereum
  • Arbitrum: an L2 protocol for Ethereum
  • Boba Network: the next generation of OMG Network

Zero-knowledge rollups:

  • Loopring: a protocol that also provides a gas-free decentralized exchange
  • Immutable X: an L2 protocol for NFTs
  • ZKSync: a zero-knowledge L2 for Ethereum

How can you buy rollups technology?

You can’t “buy” a scaling solution, but you can invest in tokens that rely on the technology. Loopring and Boba are popular examples of rollup technologies. You can buy their tokens on Ethereum-based decentralized exchanges or on centralized exchanges. Check sites like CoinMarketCap or CoinGecko to find the largest markets.

You can also use the DeFi services and exchanges created by these layer-2 networks to cut transaction costs. Loopring, for instance, operates its own layer-2 exchange, also called Loopring. There, you can take advantage of all of the delights of rollup technologies: gas-free, instantaneous trades for ERC-20 coins. 

The future of rollups technology

In the short term, the battle will continue to rage between the two competing forms of rollups: optimistic and zero-knowledge. Some claim that zero-knowledge proofs are superior because they do not require a dispute-resolution mechanism.

The long-term future of rollups depends on how upgrades to Ethereum’s mainnet pan out. Ethereum could one day become so fast that rollups would look like an unnecessary speed boost to a lightning-fast blockchain.

Rollups Technology: Scaling Solution, Reducing Transaction Fees On Ethereum

Conversely, rival L1 blockchains, like Solana and Avalanche, could become so popular that they usurp Ethereum entirely. Should the majority of DeFi’s traffic take place on blockchains other than Ethereum, rollups would become redundant. 

Alternatively, rollups technology could continue to rise should Ethereum become more powerful. They could integrate with the upcoming upgrades to make Ethereum easier and cheaper to use for the masses.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Top 6 Outstanding Zero-knowledge Proof Projects In 2023

zkSync L3 Review: Solution With Unlimited Potential

EthCC 2023 Recap: 8 Notable Big Announcements

Tags: AvalancheBlockchainDeFiETHEthereumKnowledgeOptimistic rollupsrollupsSolanazk-rollups
Previous Post

The ‘Digger’ Pi Network Anxiously Waits For Valuable Virtual Money

Next Post

Economic Effects Of Bitcoin Legalization

Other Posts

Top-5-Notable-Real-World-Assets-Crypto-Projects-In-2023
Knowledge

Top 5 Notable Real World Assets Crypto Projects In 2023

October 4, 2023
Top 5 Best AI Crypto Predictions For The Next Bull Run
Knowledge

Top 5 Best AI Crypto Predictions For The Next Bull Run

October 4, 2023
Top Layer 2 Crypto Projects In 2023
Knowledge

Top Layer 2 Crypto Projects In 2023

October 3, 2023
Progressive Jackpots: Chasing BTC’s Biggest Casino Prizes
Knowledge

Progressive Jackpots: Chasing BTC’s Biggest Casino Prizes

September 20, 2023
A Complete Overview of Cryptocurrency Cloud Mining Platform – TopHash
Knowledge

A Complete Overview of Cryptocurrency Cloud Mining Platform – TopHash

September 19, 2023
How the world’s crypto billionaires made their fortunes
Knowledge

How the world’s crypto billionaires made their fortunes

September 18, 2023
Next Post
Economic Effects Of Bitcoin Legalization

Economic Effects Of Bitcoin Legalization

  • Robinhood Now Considers Delisting SOL, ADA, And MATIC After SEC Lawsuits: Report

    Robinhood Now Considers Delisting SOL, ADA, And MATIC After SEC Lawsuits: Report

    163 shares
    Share 65 Tweet 41
  • SEC Crypto Appeal Rejected: Judge’s Decision Stuns the Market

    93 shares
    Share 37 Tweet 23
  • DWF Invests In AirDAO Despite Being Listed On Binance’s Risk Watchlist

    93 shares
    Share 37 Tweet 23
  • Top 5 Best AI Crypto Predictions For The Next Bull Run

    92 shares
    Share 37 Tweet 23
  • StarkNet Token Unlocks Delayed Until April 15 Next Year

    92 shares
    Share 37 Tweet 23
ARB Whale Banks $73K as Wintermute Pours $870K into Binance

ARB Whale Banks $73K as Wintermute Pours $870K into Binance

October 4, 2023
LEVER Rockets 100% with Massive Transfers to DWF, Binance, Bybit

LEVER Rockets 100% with Massive Transfers to DWF, Binance, Bybit

October 4, 2023
Web3 App Blackbird Successfully Raises $24M Led By a16z

Web3 App Blackbird Successfully Raises $24M Led By a16z

October 4, 2023
Solana Validator Health Report Shows Sustainable Growth

Solana Validator Health Report Shows Sustainable Growth

October 4, 2023
CMCC Global Hong Kong Funds $100M To Back Asian Blockchain Start-ups: Report

CMCC Global Hong Kong Funds $100M To Back Asian Blockchain Start-ups: Report

October 4, 2023
Thailand FinTech Festival: A Phenomenal Showcase, Uniting the FinTech Sector’s Leading Innovators

Thailand FinTech Festival: A Phenomenal Showcase, Uniting the FinTech Sector’s Leading Innovators

October 4, 2023
Top-5-Notable-Real-World-Assets-Crypto-Projects-In-2023

Top 5 Notable Real World Assets Crypto Projects In 2023

October 4, 2023
Top 5 Best AI Crypto Predictions For The Next Bull Run

Top 5 Best AI Crypto Predictions For The Next Bull Run

October 4, 2023
opBNB Review: The First Layer 2 Of BNB Chain

opBNB Review: The First Layer 2 Of BNB Chain

October 4, 2023
Stellar Invests in MoneyGram, Secures Board Seat for Blockchain Evolution

Ripple Payment License: Nabs Singapore License, Paving the Way for Major Growth!

October 4, 2023
  • Live Prices
  • Binance
  • NFT
  • Solana
  • Metaverse
  • Polygon
  • Coinbase
  • Trending

© 2021 COINCU Financial Group Inc. Address: Road Town, Tortola, British Virgin Islands. Email us: [email protected].

No Result
View All Result
  • Coincu
  • News
    • Bitcoin
    • Altcoins
    • Blockchain
    • Metaverse News
    • NFTs News
  • Market
    • Analysis
  • Knowledge
    • Crypto 101
    • DeFi
  • Reviews
    • Exchange Reviews
    • DeFi Reviews
    • GameFi Reviews
    • Casino Reviews
    • Others Reviews
  • Recommended
    • Best Presale Cryptocurrencies
    • Best Bitcoin Casinos
    • Best Bitcoin Gambling Sites
    • Best Web3 Cryptocurrencies
  • PR
    • Press Releases
    • Sponsored Articles
    • Advertise
  • Video

© 2021 COINCU Financial Group Inc. Address: Road Town, Tortola, British Virgin Islands. Email us: [email protected].

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In