Understanding Rollups: Enhancing Ethereum's Blockchain Performance

Rollups are advanced scaling solutions that enhance Ethereum's blockchain performance by processing transactions off-chain and posting the aggregated data on-chain. This approach significantly reduces congestion and lowers gas fees. Optimistic Rollups assume transactions are valid unless disputed, improving efficiency but introducing longer withdrawal times. ZK-Rollups use zero-knowledge proofs to validate transactions securely and privately, offering immediate finality and instant withdrawals. Both technologies boost Ethereum's transaction throughput and cost-effectiveness, facilitating the growth and scalability of decentralized applications within the ecosystem.