Rollups

Ethereum, the dominant force in the blockchain world, faces challenges in handling a massive volume of transactions efficiently. This is where "rollups" come into play. Rollups are Layer 2 solutions designed to execute transactions off-chain, away from Ethereum's main blockchain, while still recording transaction data on Ethereum for security. This ingenious approach significantly boosts transaction speed and reduces costs, all while inheriting the robust security of the Ethereum network. Optimistic rollup: One popular type of rollup is the "optimistic rollup." These rollups operate on the assumption that all transactions are valid, allowing for rapid processing. However, they also include a mechanism for anyone to challenge and potentially invalidate a fraudulent transaction, striking a balance between efficiency, security, and decentralization.