Rollup
Definition
A rollup is a Layer 2 scaling solution that bundles many transactions off-chain, then posts a compressed proof to the underlying Layer 1 blockchain. Rollups inherit the security of L1 while offering 10-100x lower fees and faster confirmations. Two main types: Optimistic Rollups (Arbitrum, Optimism) assume validity unless challenged; ZK-Rollups (zkSync, StarkNet) prove validity cryptographically. Rollups are Ethereum's primary scaling roadmap.
Why Does This Matter?
Understanding Rollup is essential for anyone investing in cryptocurrencies or working with blockchain technology. This concept directly influences how projects are valued, how markets behave, and what risks and opportunities exist for investors.
How Does CryptoValue Use This?
At CryptoValue, fundamental concepts like Rollup feed into our proprietary Value Score — a rating from 0 to 100 based on 10 on-chain and market metrics. Our goal is to help you identify undervalued and overvalued coins, rather than just looking at price.