Optimistic Rollup is a layer 2 scaling solution for Ethereum and other blockchains, designed to improve transaction throughput and reduce fees. It operates by essentially "rolling up" multiple transactions into a single transaction, thus allowing for more efficient use of the blockchain's data and computational resources.
Key aspects of Optimistic Rollup include:
- Ethereum Layer 2 Solution: As a layer 2 technology, Optimistic Rollup operates on top of the base Ethereum blockchain (layer 1). It handles transactions outside the main Ethereum chain but posts transaction data back to it.
- Optimistic Assumption: The term "optimistic" comes from the solution's assumption that all transactions are valid by default. Transactions are assumed to be honest unless proven fraudulent.
- Fraud Proofs: In cases where a transaction is suspected to be fraudulent, a fraud proof can be submitted. This triggers a verification process that checks the validity of the transaction.
- Improved Scalability: By processing transactions off-chain and only posting summarized data to the main chain, Optimistic Rollup significantly increases the number of transactions that can be processed, thereby improving the scalability of the Ethereum network.
- Reduced Gas Fees: Optimistic Rollup can reduce the gas fees associated with transactions, as it allows for more efficient use of the blockchain's data space.
- Compatibility with Ethereum: One of the key advantages of Optimistic Rollup is its compatibility with existing Ethereum contracts and tools, which allows developers to migrate their applications without extensive modifications.