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Rollup

A rollup is a Layer 2 scaling system that processes many blockchain transactions off-chain and posts a compressed summary back to the main chain.

A rollup is a Layer 2 scaling method that helps a blockchain handle more transactions without making every user compete for space on the main chain. It collects many transactions, processes them outside the base blockchain, and then posts a compact record back to it. The main chain still provides security and final settlement, while the rollup reduces the amount of data and computation that must happen directly on-chain.

Rollups matter because they can lower fees and speed up everyday activity such as token swaps, NFT minting, or payments while still relying on a major blockchain like Ethereum for security. There are two common designs: optimistic rollups, which assume transactions are valid unless challenged, and zero-knowledge rollups, which submit cryptographic proof that the transactions were processed correctly. A practical comparison is packing many letters into one envelope: the main chain handles the envelope, while the rollup organizes the contents more efficiently.

Other terms in Layer 2 & Scaling