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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.