Definition ∞ Privacy Rollups are layer-2 scaling solutions that bundle transactions to enhance confidentiality on a blockchain. They combine multiple private transactions off-chain into a single verifiable proof, which is then submitted to the main blockchain. These systems leverage zero-knowledge proofs to confirm the validity of bundled transactions without revealing their individual details. The objective is to increase transaction throughput and reduce costs while preserving the privacy of user activities.
Context ∞ Privacy Rollups are a key area of innovation for addressing the scalability and privacy limitations of public blockchains like Ethereum. Debates involve the trade-offs between different rollup architectures and their security assumptions. Future developments are concentrated on improving the efficiency of zero-knowledge proof generation and expanding the types of private computations supported by these advanced scaling solutions.
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