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…These rollups use a scheme called ‘fraud-proving’ to challenge invalid transactions, where, after a rollup batch is posted, there is a time window (also known as the ‘challenge period’) for anyone to submit a fraud proof to challenge the results of the rollup transactions.Additionally, optimistic rollups also use compression techniques to lower the amount of data; as a result, users enjoy lower transaction fees. Notable examples of optimistic rollups include Arbitrum, Optimism, and Blast…
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…However, as the technology evolves, various methods have emerged to achieve compatibility with the Ethereum Virtual Machine (EVM). Research Disclaimer Crypto.com Research and Insights disclaimer for research reports Key Takeaways Zero-Knowledge rollups (ZK rollups) are still at a nascent stage, with the Layer-2 landscape currently dominated by optimistic rollups, such as Optimism and Arbitrum. Nevertheless, ZK rollups like zkSync Era have been increasing in total value locked (TVL), reaching US…
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…Introduction to Ethereum Layer-2sLevel UpNEWIndividualsBusinessesDevelopersDiscoverCompanyUNIVERSITYBlockchain10 Jul 2023|INTERMEDIATE|8 MIN READIntroduction to Ethereum Layer-2sLearn all about Ethereum Layer-2 scaling technologies and how they work. Key Takeaways: The most popular types of Layer-2s on Ethereum are optimistic rollups and Zero-Knowledge rollups (ZK rollups). However, there are also other Layer-2 technologies like sidechains, plasma chains, and validiums.In general, optimistic rol…
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…This proof, also called a validity proof, is the only record required on the main blockchain, thus reducing the gas fee that users would have incurred from processing the entire data. Examples: Immutable X, Polygon Hermez, Starkware Advantages Secure and decentralised. Near-instant transfers. Disadvantages Hard to compute for smaller applications with less on-chain activity. Not all ZK rollups offer Ethereum Virtual Machine (EVM) compatibility. A user can influence transaction ordering. Optimi…
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…This proof, also called a validity proof, is the only record required on the main blockchain, thus reducing the gas fee that users would have incurred from processing the entire data. Examples: Immutable X, Polygon Hermez, Starkware Advantages Secure and decentralised. Near-instant transfers. Disadvantages Hard to compute for smaller applications with less on-chain activity. Not all ZK rollups offer Ethereum Virtual Machine (EVM) compatibility. A user can influence transaction ordering. Optimi…
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…It offers a Layer-2 (L2) scaling solution for Ethereum, designed to enhance the network’s capabilities by increasing transaction speed, helping to improve scalability, and adding privacy features. Arbitrum’s primary goal is to address the limitations of Ethereum’s smart contracts, including inefficient performance and high execution costs, which have been factors negatively impacting the Ethereum user experience. How Arbitrum Works Arbitrum offers a suite of L2 scaling technologies, includ…
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What Are Bitcoin Layer-2s and How Do They Work? Read more about Bitcoin Layer-2s — a new class of protocols bringing scalability and programmability to the Bitcoin network. What Are Bitcoin Layer-2s and How Do They Work?Level UpNEWIndividualsBusinessesDevelopersDiscoverCompanyUNIVERSITYBitcoin6 Feb 2025|INTERMEDIATE|5 MIN READWhat Are Bitcoin Layer-2s and How Do They Work?Read more about Bitcoin Layer-2s — a new class of protocols bringing scalability and programmability to the Bitcoin netwo…
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…This reduces computational overhead while still maintaining security.Fraud proofs are particularly important in optimistic rollups, a type of Layer-2 scaling solution designed to increase the throughput of blockchains like Ethereum. In optimistic rollups, transactions are bundled together and submitted to the Layer-1 blockchain (e.g., Ethereum) under the assumption that transactions are valid by default, verifying them only if a fraud proof is submitted.Key TakeawayFraud proofs are an essential …
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…This enables significantly greater throughput while inheriting Ethereum’s security model. Optimistic rollups assume that transactions are valid by default but allow a challenge window during which incorrect data can be disputed using fraud proofs. This model maintains decentralization and trustlessness while offering far superior efficiency compared to layer-1 execution. The OP token plays a central role in governing the Optimism Collective, a unique dual-governance system that includes the To…
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