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What is Ethereum 2.0 Rollup?

BitForex Editor
Dec 03, 2020

Ethereum is one of the largest Cryptocurrencies in the market and the Cryptocurrency world and it is setting up an upgrade to the network.
An Ethereum Rollup is fundamentally a layer two scaling solution which is for blockchains. The Ethereum Rollup is as well a sidechain linked to a relatively minor contract taking place on the internet. It permits the dispensation of off-chain as well as using the internet only for ultimate settlement, decreasing processing fees/time and alleviating network congestion and overcrowding.

The Ethereum 2.0 is also referred to as “serenity” or “Eth2” and is the upgrade for Ethereum blockchains. The Ethereum 2.0 objective is to increase the scalability, speed, and efficiency of the universal Ethereum network in order for it to be enabled to ease off bottlenecks and process supplementary transactions. The Ethereum 2.0 will also bring about sharding, eWASM (ETHEREUM WebAssembly), and POS mechanism (PROOF OF STAKE).

The Ethereum 2.0 will be executed in three different stages. The first stage/phase is the 0 BEACON CHAIN which will initiate the staking facility and this is anticipated by late Q2 2020. Phase 1 will come after the 0 BEACON CHAIN by Q1 2021 and then initiate sharding, thus allowing data and information to be saved using shards, although the transaction cannot yet be processed.

Phase/stage 2 will allow Ethereum 2.0 upgrade optimally complete and operational around 2022. After its initiation, it will introduce eWASM substituting EVM (Ethereum Virtual Machine).
After the instigation of Phase 2, processing of transactions and implementation of contracts can begin on the Ethereum 2.0 chain, and the Ethereum 1.0 chain will progressively merge with the Ethereum 2.0 chain. While Eth 1.0 makes use of consensus mechanisms called the PROOF OF WORK, Eth 2.o makes use of the POS mechanism.
The Ethereum 2.0 has long been coming but at this point, it is conclusively on the way and horizon. Its major aim and objective are to focus on security and network scalability via a good amount of modification to infrastructures.

Ethereum 2.0 is developed with security. The majority of the proof of stake net contains a trivial group of validators that make a better-centralized system and reduced network security. The Ethereum 2.0 needs at least 16,384 validators which make it even more decentralized.

With blockchains like Ethereum, there’s a necessity for the validation of transactions via a decentralized means. In this platform, miners make use of processing power for resolving complex statistical puzzles and also initial transactions.

What is The Ethereum Layer 2?

Ethereum layer 2 is the general phrase for resolutions and solutions created with the intention of helping applications via management of transactions that are out of the major Ethereum chain.
The speed of transaction suffers basically when there is congestion in the network, which may allow for a poor experience.

The majority of the Ethereum layer two solutions are surrounded by a collection of servers which can be known as a block producer, validators, node, sequencer, or operator. Based on the execution and implementation, an Ethereum layer 2 can be operated by the entities or businesses that make use of it, and it can also be operated via a huge number of individuals or third party operator.
 Commonly, transactions processed and made are not directly given to Ethereum layer 1, they are first submitted to a layer 2 node which then groups them before introducing them into the Ethereum layer 1 where they are secured and can never be distorted.
The details and information of the way it is carried out differ appreciably between several layer 2 implementations and technologies.

There are various types of Ethereum Layer 2 solution. They include;


2.State channels




6.Hybrid solutions


Rollups are generally solutions that roll up or bundle sidechain transactions or contracts into a particularly distinct transaction and then produce cryptographic proofs called SNARK. The proof generated is usually submitted directly to the main chain. Thus, in rollups, every execution and state is operated in Sidechains.

N.B: A sidechain is an independent blockchain that is compatible with Ethereum.

Uses of Rollups

1.Decreasing users’ fee

2.Allows for fast transactions

3.Open participation

Types of Rollups

1.Zero-Knowledge (ZK Rollup)

2.Optimistic Rollup

Zero-Knowledge Rollup

The Zero-knowledge rollup bundles a large number of transfers and transactions in a particular transaction through smart contracts.
From the information and data submitted and presented, a smart contract is able to confirm every transfer and transaction that has been processed.
With the Zero-Knowledge rollup, authentication of a block is cheaper and faster because there are fewer requirements for data. There is no delay and at the same time lesser vulnerability against attacks but it is not EVM-compatible which is a setback to the ZK rollup.




Optimistic Rollup

Optimistic rollup makes use of a sidechain which is positioned just parallel to a major Ethereum chain, they also provide an enhancement in scalability.
Because of optimistic rollup, transfers and transactions are sent to the major Ethereum chain like call data. The optimistic rollups further optimize the transactions via decreasing gas costs. In contrast to the ZK rollup, optimistic rollup is EVM compatible and also decentralized and secure but it is time consuming and potentially vulnerable.



2.Fuel Network


Channels usually permit individuals and users to transact varied amounts of times which is off-chain whereas submitting only two transfers of the network which is on-chain. These help in the very high transaction. Channels involve instant withdrawal and also tremendously high transactions and transfers usually at a low cost. The network needs to be watched periodically and does not encourage open participation.


1.Channels are used when the amount of users is recognized

2.When users are constantly available

3.Used for plenty of state updates


Plasma chains are varied blockchains, which are attached to the major Ethereum chain. They make use of fraud proofs to settle disputes. Plasma offers high transaction at low cost but does not encourage and support universal computation, they rely on other operators to save data and the withdrawals are usually delayed.


1.OMG network

2.Matic Network



Validium makes use of validity proofs such as ZK rollup except data is usually not stored and saved on the Ethereum layer 1 chain. Several chains may be operated in parallel. They are not susceptible and vulnerable to specific attacks and no delay in withdrawal with better capital efficiency. There is excessive computational power needed to produce ZK proofs, inadequate support for smart contracts, and computation.





Sidechains are also separate blockchains that are parallel to the mainnet, which also function independently. The sidechain runs with its own specific consensus algorithm and is linked to the major and main chain via a two-road channel. The Sidechains support universal computation and they make use of established technology. They are also decentralized and make use of a different consensus mechanism.


1.POA Network


Ethereum layer 2 aims at providing the majority of the security and functionalities of their fundamental blockchains without making use of them through diverse means. This is beneficial as it eases off congestion of the Ethereum network within a short period and prevents redundant transaction history in the blockchain within a long period.
Ethereum layer 2 is intricate and complex to build but they are also safe as all the transactions made are usually recorded via an indisputable ledger.

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