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Rollup

Intermediate

A rollup is a Layer 2 scaling solution that enhances blockchain efficiency by bundling (rolling up) multiple transactions into a single transaction and posting it to the main chain. This reduces congestion, speeds up transactions, and lowers fees. There are two main types of rollups: Optimistic Rollups and Zero-Knowledge Rollups (zk-rollups). Rollups maintain the security of the base layer while improving scalability on decentralised networks. 

Related Words

ROI

Intermediate

Return on Investment (ROI) measures the profitability of a cryptocurrency investment. It is calculated by comparing the initial cost to the current value, helping investors evaluate profitability over time.

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