What is an Optimistic Rollup?
Optimistic Rollup is a layer-two scaling solution for Ethereum, a decentralized blockchain platform. It allows for fast, low-cost transactions by processing them off the main Ethereum blockchain and aggregating them into a single transaction that is submitted to the Ethereum network.
Optimistic Rollup is called "optimistic" because it uses a technology called "optimistic concurrency control" to allow for fast transactions. This technology allows for transactions to be processed in parallel, rather than in sequence, which can significantly speed up the overall process.
One of the key benefits of Optimistic Rollup is that it allows for the processing of a large number of transactions in a single, compact package, which reduces the load on the Ethereum network and helps to lower transaction fees. This makes it an attractive solution for developers who are building decentralized applications (dApps) and who need to process large numbers of transactions in a cost-effective manner.
Another benefit of Optimistic Rollup is that it allows for the integration of new and innovative financial applications, such as decentralized exchanges, stablecoins, and other decentralized finance (DeFi) applications. This helps to drive the growth and adoption of the Ethereum ecosystem.
Simplified Example
Imagine you and your friends are playing a game where you each take turns rolling a dice. Each time you roll the dice, you add the number you rolled to your score. However, sometimes your friends might not agree on the number you rolled or they might forget to write down your score. To make sure everyone's scores are recorded correctly, you use a special notebook called an "optimistic rollup." Just like you roll the dice and add the number to your score, in a blockchain network, transactions are processed and added to the blockchain. An "optimistic rollup" is a way to keep track of all these transactions and make sure they are recorded accurately. The optimistic rollup allows for fast processing of transactions, while still ensuring the security and integrity of the underlying blockchain.
Who Invented the Optimistic Rollup?
The term "optimistic rollups" was coined in 2018 by Rollup Systems, a blockchain startup co-founded by Ben Edgington, who later became a key figure in Optimism. Initially conceived as a remedy for the scalability challenges confronting the Ethereum blockchain, optimistic rollups emerged as a proposed solution to address issues of congestion and soaring transaction fees experienced by Ethereum as it gained widespread popularity.
Examples
Arbitrum Rollups: Arbitrum Rollups is a scalable, secure, and efficient platform for executing Ethereum smart contracts. The platform uses optimistic rollup technology to provide fast, low-cost transactions while maintaining the security and trustlessness of the Ethereum blockchain. Arbitrum Rollups allows developers to write and deploy smart contracts on its platform, and to access the full range of Ethereum's features and tools, including its large ecosystem of decentralized applications and its decentralized virtual machine (EVM). The platform is designed to support a wide range of use cases, including decentralized exchanges, gaming platforms, and DeFi applications.
zk-rollups: zk-rollups is a scalability solution for the Ethereum blockchain that allows users to perform a large number of transactions at high speed while maintaining the security and privacy of their data. The platform uses zero-knowledge proofs (zk-proofs) and optimistic rollup technology to provide fast, low-cost transactions, and to ensure that all transactions are executed correctly and securely. zk-rollups supports a wide range of use cases, including decentralized exchanges, gaming platforms, and DeFi applications.
Polygon Rollups: Polygon Rollups is a scalable, secure, and efficient platform for executing Ethereum smart contracts. The platform uses optimistic rollup technology to provide fast, low-cost transactions while maintaining the security and trustlessness of the Ethereum blockchain. Polygon Rollups allows developers to write and deploy smart contracts on its platform, and to access the full range of Ethereum's features and tools, including its large ecosystem of decentralized applications and its decentralized virtual machine (EVM). The platform is designed to support a wide range of use cases, including decentralized exchanges, gaming platforms, and DeFi applications.
Related Terms
Zero Knowledge Rollup: A type of blockchain scaling solution that combines the security of the underlying blockchain with the scalability of off-chain transactions.
Ethereum Transaction: A digital contract that enables a user to send digital currency or other related assets like tokens, digital certificates, etc. over a distributed, decentralized, public ledger called the Ethereum blockchain.