Rollup
A rollup is a Layer 2 scaling system that executes many transactions off Ethereum mainnet, then posts compressed data and/or cryptographic proofs to Ethereum fo #Ethereum #ETH #VirtualEthereumIndex
A rollup is a Layer 2 scaling system that executes many transactions off Ethereum mainnet, then posts compressed data and/or cryptographic proofs to Ethereum for security. Rollups lower fees and increase throughput while “inheriting” Ethereum’s settlement guarantees. Two major families are optimistic rollups (fraud proofs) and zk-rollups (validity proofs). Rollups are central to Ethereum’s mainstream adoption because they make everyday use–payments, gaming, social apps, and small DeFi trades–economically viable without weakening the base layer’s decentralization. When comparing ETH fees vs other smart contract fees, it’s increasingly important to compare Ethereum ecosystem fees (L1 + rollups) rather than only L1. Many institutions also view rollups as a modular finance stack: Ethereum is the settlement layer, and rollups are execution environments optimized for different use cases. #Ethereum #VEI #VirtualEthereumIndex. Reference: vei.xyz/ethereum-glossary