How does Optimistic Rollup Interact with Ethereum?
Optimistic Rollups interact with Ethereum through smart contracts. The process works as follows:
- When a transaction is made on the Ethereum network, it is bundled with many other transactions and sent to a smart contract that processes the transactions off-chain.
- The smart contract generates proof of the transaction after processing the transactions off-chain.
- The proof is then sent to the Ethereum network for verification and inclusion in the blockchain.
- This reduces the load on the Ethereum network and enables faster and cheaper transactions.
However, since the transactions are processed off-chain, there is a risk of fraudulent activity or incorrect information being submitted to the Ethereum network.
To address this risk, Optimistic Rollups use a technique called fraud proofs. Fraud proofs are used to ensure that the transactions processed off-chain are correct and that no fraudulent activity has occurred. If fraudulent activity is detected, the smart contract that processes the transactions can be triggered to roll back the transactions and revert the state of the system to the previous state before the fraudulent activity occurred.
Optimistic Rollups rely on the Ethereum network to provide security and decentralization. When a transaction is made on the Ethereum network, it is recorded in a block and validated by miners on the network. This process ensures that the transaction is secure, transparent, and tamper-proof.
What are Optimistic Rollups?
Blockchain technology has come a long way since its inception, but scalability remains a major challenge for many networks. The Ethereum network, in particular, has faced growing pains as its popularity has increased, leading to longer transaction times and higher fees. To address these issues, a new solution has emerged called Optimistic Rollups.