Optimistic Rollup is a layer-2 scaling solution that allows transactions to be carried out outside the main chain (layer 1). However, the process remains connected and protected by the main chain. Thus, Optimistic Rollup can increase the speed, efficiency and cost of transactions on the blockchain.
Optimistic Rollup is a solution of limitations in terms of blockchain scalability. Scalability is the ability of a system to handle an increasing number of users or transactions.
One of the main challenges in blockchain is how to increase scalability without sacrificing security or decentralization.
In this article, we will dig deeper into what Optimistic Rollup is, how it works, what advantages and challenges it has, and what implications it has for the blockchain ecosystem. You can find out below.
Basic conceptsOptimistic Rollup
Optimistic Rollup is a type of layer-2 scaling solution based on the rollup concept. Rollup is a technique that combines multiple off-chain transactions into a single batch, and then sends that batch to the main chain as data.
This data is called call data which can be used to reconstruct or verify off-chain transactions if necessary.
There are two main types of rollup, namely ZK Rollup and Optimistic Rollup. The basic difference between the two is how they verify off-chain transactions.
ZK Rollup uses a cryptographic proof called zero-knowledge proof to prove that off-chain transactions are valid. Zero-knowledge proof is a method that allows someone to prove that he knows something without revealing what he knows.
In contrast, Optimistic Rollup does not use cryptographic proofs, but instead assumes that off-chain transactions are valid by default. This is referred to as the optimistic approach.
This is because it relies on economic incentives and dispute resolution mechanisms to ensure the honesty of transactions. If anyone suspects that an off-chain transaction is invalid, he can submit proof of fraud to the main chain, and trigger the transaction reverification process.
If the evidence of fraud is proven to be true, the fraudulent transaction will be cancelled, and the perpetrator will be subject to sanctions.
Way of work Optimistic Rollup
Optimistic Rollup works using three main components, namely smart contracts, sequencers, and validators. Smart contracts are programs stored on the main chain, and act as a bridge between layer 1 and layer 2.
Smart contracts store transaction data, set transaction rules, and handle evidence of fraud.
The sequencer is a third party in charge of managing transactions at layer 2. The sequencer receives transactions from users, sorts transactions, and executes transactions at layer 2. The sequencer also sends batches of transactions to smart contracts at layer 1 as calldata.
Validators are a group of parties that monitor transactions at layer 2, and check whether transactions comply with smart contract rules. Validators can be public nodes that anyone can run, or private nodes selected by the sequencer.
If a validator finds a fraudulent transaction, it can submit proof of fraud to the smart contract, and trigger the transaction reverification process.
Optimistic Rollup: Benefits and Challenges
Optimistic Rollup has several benefits and challenges to consider. The following are some of them:
Profit
- Lower Gas Costs
- High Throughput
- Fast Confirmation Time
Challenge
- Delay in Evidence of Fraud
- Data Availability Issues
- Risks of Sequencer Centralization
- Compatibility Trade-Off
Well, that's the article about Optimistic Rollup fromover. Hope it helps, OK!
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