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EMS Trading API

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Optimistic Rollup

An Optimistic Rollup is a Layer 2 scaling solution for Ethereum that improves transaction speed and reduces gas fees while maintaining security.

Optimistic Rollup - Definition

Optimistic Rollup is a Layer 2 scaling solution for Ethereum. It improves transaction speed and reduces GAS fees. It maintains the security of the main Ethereum network.

Transactions are processed off-chain and data is posted to the Ethereum Mainnet (Layer 1). It assumes transactions are valid unless challenged. This design increases scalability and efficiency for DApps on Ethereum.

Optimistic Rollups execute transactions outside the Ethereum Mainnet. They bundle multiple transactions into a single batch. This batch is submitted to Layer 1 with a cryptographic commitment.

Each transaction is not immediately verified. A challenge period allows disputes through fraud-proof. If a fraudulent transaction is found, it is reverted. This process ensures the integrity and security of the rollup.

  • Security Inheritance: Uses Ethereum’s security through fraud proofs.
  • Cost Efficiency: Offers lower GAS fees compared to Layer 1.
  • High Throughput: Increases transactions per second by processing them off-chain.
  • EVM Compatibility: Compatible with the Ethereum Virtual Machine, enabling seamless deployment of smart contracts.
  • Data Availability: All transaction data is available on Layer 1.

Optimistic Rollups move computation and state storage off-chain. They post compressed transaction data on-chain. Validators process and bundle transactions off-chain.

They then submit the batch to Ethereum. During the challenge period, discrepancies can be contested via fraud proofs. Successful challenges revert fraudulent transactions and penalize malicious actors. This ensures trustless finality and network security.

  • Scalability: Increases Ethereum’s throughput significantly, supporting high-demand applications.
  • Lower Fees: Reduces cost per transaction by aggregating multiple transactions.
  • EVM Compatibility: Facilitates easy migration of existing Ethereum smart contracts and DApps.
  • Security: Inherits Ethereum’s security model, protecting against attacks and fraud.
  • Withdrawal Delays: Users wait for the challenge period to complete before withdrawing funds.
  • Dependency on Honest Nodes: Requires at least one honest node to challenge fraudulent transactions.
  • Higher Gas Costs than ZK-Rollups: Cheaper than Layer 1 but generally costs more than Zero-Knowledge Rollups.
  • Centralized Sequencers: Sequencers may control transaction ordering, introducing centralization risks.
  • Optimism: An early Optimistic Rollup solution, focusing on EVM compatibility.
  • Arbitrum: Known for its efficient design and developer-friendly tools.
  • Boba Network: Offers scalability and lower fees with additional features like hybrid computing.
  • Metis: Provides an environment for building and managing DApps with Optimistic Rollups.
  • Scalability Enhancement: Optimistic Rollups significantly increase Ethereum’s transaction throughput by processing transactions off-chain and bundling them into batches.
  • Cost Efficiency: Aggregating multiple transactions reduces individual GAS fees, making DApps more affordable.
  • Security Model: They inherit Ethereum’s security through fraud proofs, allowing invalid transactions to be challenged.
  • EVM Compatibility: Fully compatible with the Ethereum Virtual Machine, facilitating easy migration and deployment of existing smart contracts and DApps.