Definition
A Layer 2 scaling solution that processes and bundles multiple transactions off the main chain and submits a compressed proof to the base layer. Rollups inherit the security of the underlying blockchain while dramatically increasing throughput.
Why It Matters
Rollups are the primary solution to Ethereum's scalability problem. They enable fast, cheap transactions while maintaining Ethereum's security — critical for DeFi mass adoption.
Example
Arbitrum and Optimism are Optimistic Rollups that allow Ethereum transactions for a fraction of the cost. zkSync and StarkNet use zero-knowledge proofs for even greater efficiency.
Related Terms
Layer 2
Ethereum
Gas Fee
Scaling