The Ethereum platform is a platform that works in a decentralized way, it is a kind of “computer” that does not work as a single device or equipment, but there are thousands of computers connected simultaneously globally. Ethereum, like most cryptocurrencies, allows digital money transfers, in addition to using its own code and interacting with applications created by other users. Because of its flexibility, any type of sophisticated program can be launched via Ethereum. With the Ethereum platform, developers can create and publish code that runs on a distributed network instead of using a centralized server; this means that “in theory,” such applications cannot be controlled or censored by third parties.

What are Ethereum “rollups”?

Rollups are new blockchain networks that can process transactions independently of Ethereum; this process is generally done “before” sending transactions or operations to the key chain of Ethereum batches. Rollups can accomplish different computational processes without “saturating” the underlying network with excess data or computing requests. It is estimated that Ethereum rollups could process up to 100,000 transactions per second; this means a notable increase in transactional performance of over 10,000 times. Rollups allow you to “roll” several transactions into one. These implementations will serve as scalability tools while Ethereum version 2.0 is rolled out.

Improving the scalability of Ethereum

Rollups group several network transactions into one; this is possible within the same block, grouping the largest number of transactions, thus achieving a considerably reduced commission payment and increasing the transaction rate per second (TPS), going from 15 TPS to more than 1,000 TPS. This performance varies depending on the type of rollup implemented. Another point of interest concerns the saving in expenses for commissions, being one of the primary objectives of the rollups.

Rollups and smart Contracts

There is a possibility that rollups can be executed on smart contracts. To better understand this possibility, the Ethereum virtual machine is the “engine” that allows smart contracts on the Ethereum network. Its job is to interpret the language in which the contracts are programmed to execute and keep them running. The rollups compatible with smart contracts are Full Ethereum Virtual Machine (Full-EVM) and custom contracts.

In Full-EVM, the full use of the virtual machine is allowed without the need for additional codes; this means that the smart contracts could be used in their entirety. And in the case of custom rollups, they admit configurations in using smart contracts, although with limitations at the time of use.

Challenges with the use of rollups

There are three points to consider to successfully overcome rollup implementation in upcoming Ethereum Dapps developments:

Capital requirements

For the successful implementation of a rollup, significant capital investment is required to enable its development, implementation, and maintenance of the rollup in execution.

Safety

The protocols implemented by ZK-Rollups present some difficulties in the auditing of contracts; therefore, there must be a total guarantee of security in the use of rollups by qualified security experts.

User adoption

Given the novelty of rollups, there is still a lot of caution on users, which limits mass adoption, while the technology remains in the testing phase.

What do you think about this topic? Do you think Ethereum rollups are really important?

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