Rollup Settlement

Definition ∞ Rollup settlement refers to the finalization of transactions processed on a Layer 2 rollup chain onto the main Layer 1 blockchain. This process involves bundling many off-chain transactions into a single batch and submitting a cryptographic proof of their validity to the Layer 1 chain. It significantly increases transaction throughput and reduces fees on the main network while inheriting its security properties. This method is a core scaling solution for blockchains.
Context ∞ The efficiency and security of rollup settlement mechanisms are central to the scalability roadmap of major blockchains like Ethereum. A key debate involves the trade-offs between different rollup types, such as optimistic versus zero-knowledge rollups, concerning their security assumptions and latency. Future developments will likely see enhanced interoperability between various rollups and more optimized proof generation processes. Rollup settlement is fundamental to achieving widespread decentralized application usage.