Definition ∞ Privacy-preserving rollups are Layer-2 scaling solutions that bundle numerous transactions off-chain and then submit a cryptographic proof to the main blockchain, while simultaneously concealing sensitive transaction details. These rollups utilize advanced cryptographic techniques to ensure the confidentiality of user data. They allow for increased transaction throughput without revealing private information on the public ledger.
Context ∞ The demand for privacy in decentralized finance has brought privacy-preserving rollups to the forefront of blockchain innovation, often featured in crypto news. These solutions address concerns about transaction visibility on public blockchains, offering a way to scale while maintaining user confidentiality. Their development is crucial for expanding the utility of digital assets in regulated or sensitive contexts.
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