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Introduction
Blockchain technology has revolutionized digital transactions, but scalability remains a persistent challenge. As decentralized applications (dApps) and smart contracts gain traction, networks like Ethereum struggle with high gas fees and slow transaction speeds. To address these issues, Layer 2 (L2) scaling solutions have emerged, with Optimistic Rollups (ORs) and Zero-Knowledge Rollups (ZK-Rollups) leading the charge.
Both approaches aim to increase throughput while maintaining security, but they differ significantly in their mechanisms and trade-offs. Understanding these differences is crucial for developers, investors, and blockchain enthusiasts navigating the future of decentralized finance (DeFi), Web3, and enterprise blockchain adoption.
What Are Rollups?
Rollups are a Layer 2 scaling solution that processes transactions off-chain and then bundles (or "rolls up") them into a single transaction on the main chain (Layer 1). This reduces congestion and costs while leveraging the security of the underlying blockchain.
There are two primary types:
- Optimistic Rollups – Assume transactions are valid by default and only verify them if challenged (fraud proofs).
- Zero-Knowledge Rollups – Use
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