Rollups

Rollup is another popular layer 2 scaling technique that has gained much traction in recent years through its promise of higher transaction throughput, reduced fees, and open participation [4]. Rollups differ from state channels and plasma in that they do not move transactional data off-chain; instead, they only seek to transfer the computation off the Ethereum mainchain. By keeping the majority of transaction data on-chain, rollups make a trade-off between scalability and security. The data bandwidth of the base chain limits scalability (albeit in a more amenable ratio since rollups replace data with computation wherever possible) [9]. Security, on the other hand, is enhanced as compared to the other approaches since rollups inherit the security properties of the base chain itself.