Layer-2 Rollups

Definition ∞ Layer-2 Rollups are scaling solutions designed to increase the transaction throughput and reduce fees on a main blockchain, known as Layer-1. They process transactions off-chain, bundle them together, and then submit a single, compressed proof of these transactions back to the Layer-1 chain. Their function is to alleviate network congestion and improve efficiency without compromising the security of the underlying blockchain. This technology is vital for enhancing the usability of decentralized applications.
Context ∞ Layer-2 Rollups are a major focus in cryptocurrency news, particularly concerning the scalability of networks like Ethereum. The current state involves significant development and deployment of various rollup types, such as optimistic and zero-knowledge rollups, each with distinct security and efficiency trade-offs. A critical future development will be the increasing interoperability between different Layer-2 solutions and their seamless integration into decentralized applications, aiming to create a highly scalable and user-friendly blockchain ecosystem.