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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.