Layer Two Rollups

Definition ∞ Layer Two rollups are a category of blockchain scaling solutions that execute transactions off the main Layer 1 chain but post transaction data back to it. They bundle numerous off-chain transactions into a single batch, reducing the computational load on the primary network. This method significantly improves throughput and lowers transaction fees while inheriting the security of the Layer 1 chain.
Context ∞ Crypto news frequently features Layer Two rollups as a primary approach to address the scalability challenges faced by foundational blockchains like Ethereum. Discussions often differentiate between optimistic rollups and ZK-rollups, highlighting their respective security models and efficiency gains. The ongoing development and deployment of Layer Two rollups are central to the expansion and mainstream adoption of decentralized applications.