What Is an Optimistic Rollup?
An Optimistic Rollup is a type of blockchain scaling solution that allows for the processing of transactions off-chain while still maintaining security and decentralization. It works by allowing users to submit their transactions to an off-chain layer, which then batches them together into blocks and submits them back onto the main chain. This process reduces transaction costs and speeds up confirmation times, making it ideal for applications with high throughput requirements such as decentralized finance (DeFi) protocols.
Optimistic Rollups are also known as “state channels” or “layer two solutions” because they operate on top of existing blockchains like Ethereum. They use cryptographic techniques to ensure that all participants in a given transaction agree on its outcome before submitting it back onto the main chain. This makes them more secure than other scaling solutions since any malicious activity can be detected quickly and easily reversed if necessary. Additionally, Optimistic Rollups allow developers to create complex smart contracts without having to worry about scalability issues due to their ability to batch multiple transactions together at once.