Rollup Efficiency

Definition ∞ Rollup Efficiency refers to the effectiveness of layer-2 scaling solutions, known as rollups, in processing transactions at a lower cost and higher speed than the base layer blockchain. It measures how well these solutions can bundle transactions and post compressed data to the main chain. Enhanced rollup efficiency directly translates to more affordable and faster decentralized application usage.
Context ∞ Discussions surrounding Rollup Efficiency are prominent in the ongoing development of Ethereum scaling. Analysts and users are evaluating the performance metrics of various rollup solutions, focusing on their throughput capabilities, transaction finality times, and the cost savings they provide. The competitive advancement in rollup technology is a critical factor for the broader adoption of blockchain applications.