Decentralized Rollups

Definition ∞ Decentralized rollups are a category of Layer 2 scaling solutions for blockchains that bundle numerous off-chain transactions into a single transaction on the main chain. They achieve decentralization by distributing the roles of transaction aggregation and proof generation among multiple participants. This design enhances transaction throughput and reduces costs while inheriting the security properties of the underlying Layer 1 blockchain. They represent a significant advancement in addressing blockchain scalability limitations.
Context ∞ News about decentralized rollups frequently addresses efforts to scale prominent blockchains like Ethereum, enabling broader adoption of decentralized applications and digital assets. Discussions often center on different types, such as ZK-rollups and optimistic rollups, and their respective trade-offs in terms of security, efficiency, and finality. The ongoing development and deployment of these solutions are critical for the future growth and utility of the decentralized finance ecosystem.