Optimistic Rollup

An Optimistic Rollup is a Layer 2 scaling solution that processes transactions off the main blockchain to improve speed and reduce costs, while still relying on the base layer (like Ethereum) for security.

How Optimistic Rollups Work

They “roll up” multiple transactions into a single batch and submit them to the main chain with minimal data. Unlike zero-knowledge rollups, Optimistic Rollups assume transactions are valid by default—hence “optimistic.” If someone spots a fraudulent transaction, they can submit a fraud proof during a challenge period to correct it.

Why Optimistic Rollups Matter

Optimistic Rollups dramatically increase blockchain efficiency without sacrificing decentralization. They help blockchains like Ethereum scale for real-world applications such as DeFi and gaming. While cheaper and faster, they come with trade-offs like longer withdrawal times due to the fraud challenge period.