Optimism Rollup Technology

Definition ∞ Optimism Rollup Technology is a Layer 2 scaling solution for Ethereum that processes transactions off-chain to reduce congestion and fees on the main network. It bundles multiple transactions into a single batch, which is then submitted to the Ethereum blockchain. This technology assumes transactions are valid by default, using a fraud-proof mechanism where any incorrect state transition can be challenged and verified. It significantly enhances throughput and lowers costs for decentralized applications.
Context ∞ Optimism Rollup Technology is a central topic in discussions about Ethereum’s scalability and its ability to support widespread decentralized applications. News often covers updates and new projects deploying on Optimism, highlighting its role in the Layer 2 ecosystem. A key debate involves the security model and challenge periods associated with optimistic rollups compared to other scaling solutions.