Why Do You Need Optimistic Rollup?
As the Ethereum network grows, the number of transactions processed on the blockchain network increases, leading to network congestion. This congestion results in slower transaction times and higher transaction fees. High transaction fees can be a significant barrier for users who want to use decentralized applications on the Ethereum network. It also limits the growth of decentralized finance (DeFi) platforms, which require high transaction throughput to provide liquidity to the market.
- Processes transaction off-chain: Optimistic Rollups provide a solution to these problems by processing transactions off-chain and then submitting them to the Ethereum network as a single batch. This reduces the load on the blockchain network and results in faster and cheaper transactions. With faster and cheaper transactions, users can use the Ethereum network more effectively and participate in DeFi platforms without being deterred by high transaction fees.
- Increases adoption of Ethereum Network: Optimistic Rollups can help to increase the adoption of the Ethereum network by enabling more use cases and decentralized applications to be built on top of it. As a result, this can lead to a more vibrant and diverse ecosystem of decentralized applications, which can attract more users to the network.
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.