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Fundamentals

Rollups

Pain point

Ethereum scaling, while gas fee is high

Solution

Layer 1 scaling

migration to POS

merging the state of POW into POS and sharding(+rollups)

Layer 2 scaling

Side chains(EVM compatible)

not relying on eth consensus, not that safe

have their own consensus models

So what is Rollups?

Rollups are solutions that perform transaction execution outside the main Ethereum chain (layer 1) but post transaction data on layer 1.

As transaction data is on layer 1, rollups are secured by layer 1.

Inheriting the security properties of layer 1 while performing execution outside of layer 1 is a defining characteristic of rollups.

Three simplified properties of rollups are:

transaction execution outside layer 1

data or proof-of-transactions is on layer 1

a rollup smart contract in layer 1 that can enforce correct transaction execution on layer 2 by using the transaction data on layer 1

Rollups require "operators" to stake a bond in the rollup contract. This incentivises operators to verify and execute transactions correctly.

Execeutes Transactions

Takes the data

Compress it

Roll it up to the main chain in a single batch

Useful for:

reducing fees for users

open participation

fast transaction throughput

Issues, how to avoid malicous

Each roll ups deploys a set of smart contracts on Layer 1: Processing deposites, withdraws and verifying proofs

Optimistic Rollups: fraud proofs

Optimistic rollups: assumes transactions are valid by default and only runs computation, via a

fraud proof⁠

, in the event of a challenge

dispute resolution: Verify fraud proofs, detect fraud and penalize

The party need to submit a bond of ETH, if the transc it invalid, then the they will lose the bond

It can replay the transactions to the previous state

Need time for all parties to submit fraud proofs before transactions, users needs to wait for weeks for withdrawing

ZK Rolluops: validity proofs

Zero-knowledge rollups: runs computation off-chain and submits a

validity proof⁠

to the chain

hard to create a EVM compatible zk rollup

so it is hard to scale general-purpose app without rewritting the app logic

Need high spec machine, makes hard for normal users to run nodes

Challenges

Composability: All protocals needs to be deployed on the same rollup

Fractured Liquidity

Bibliography:

⁠

https://www.youtube.com/watch?v=7pWxCklcNsU&ab_channel=Finematics⁠

⁠

https://ethereum.org/en/developers/docs/scaling/layer-2-rollups/⁠

⁠

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