Rollups is a scaling solution designed to increase the Ethereum network's transactions and reduce fees. Ethereum's native blockchain has a limited capacity, resulting in network congestion and high transaction costs during periods of high demand.
Rollups work by collecting multiple transactions off-chain and submitting a single compressed summary or "rollup" of these transactions to the Ethereum Mainnet. This approach allows for a significant increase in transaction scalability and efficiency. There are 2 types of rollups:
- Optimistic Rollups
- Zero-Knowledge Rollups (zk-rollups)