LETS TALK ABOUT ROLLUPS IN CRYPTO
To better understand what a rollup is in crypto, I will like to use this example to explain it. Imagine you want to send your family in another city a letter and they are about five of them. If you are to do it expensively, you will have to write five separate letters and then you will have to pay the shipping fee for five different letters. But if you want to do it smartly, you will write five different letters and then put the letters in just one big envelope, this way is very cheap because you don't have to pay the shipping fee for five different letters. The example is just how the Ethereum blockchain use rollup to scale Ethereum.
To better understand what rollup is, you have to know that two things can be posted on a blockchain which are transactions and data. The transaction part is when you send your coin from one wallet to another but Ethereum has something that makes it interesting. You can store anything on the Ethereum network such as dairy or anything. You can write codes to be run on the Ethereum blockchain and that program is called a smart contract.
Ethereum blockchain can not store a lot of data. Assuming, that the Ethereum blockchain can only process 50 transactions and about 50,000 people are wanting to process their transactions. What Ethereum blockchain would do is select the highest bidder the other will have to wait. Just like a said earlier the Ethereum blockchain could add data to the blockchain, which means it can substitute those 50 transactions into one data instead of it being a transaction. If it is in form of data, we can write a whole bunch of transactions into one single block and we can scale the transaction process with it. What rollup does is to put together many transactions and send them as just one data to the Ethereum blockchain to save a lot of space in the blockchain. So, the blockchain can now process more transactions than before. Just like the example I used the initially about the letters, instead of the mail carrier carrying five different letters and he will be carrying just one envelope because all the five letters are in one envelope.
There are two major for doing a rollup which are Zksnarks Rollups, and Optimistic Rollups. Let first explain what Zksnarks before explaining Optimistic Rollup.
- Zksnarks Rollup
What it does is to gather data from off-chain and submit those data gathered to the layer one blockchain. The data that will be submitted by Zksnarks is called Validity Proof which means someone assesses all the transactions in a certain rollup to make sure that there is no fraudulent activity in it and then send it to the Ethereum blockchain. You should know the Ethereum blockchain has offloaded some of its works to the Zksmark checker.
Zksnarks is an acronym which means a lot of things like they do not necessarily have to see all the transactions data (Zero Knowledge), it is very short (Succinct), and They do not have to interact with the owners of these transactions (Non-interactive), they delivered accurate data check-up (Argument of Knowledge).
- Optimistic Rollups
These rollups will only assume transactions are good base on how it was programmed and send it directly to the Ethereum blockchain instead of using a validity proof like Zksnarks uses.
Rollup helps to scale the Ethereum blockchain. Zksnark rollup is very similar to optimistic rollup but it only difference is that Zksnark uses validity proof while optimistic rollup doesn't. Optimistic rollup does not check the transaction to see if there is fraud but they use some called fraud-proof proof on some occasions. What optimistic rollup does is post can be checked by anyone. Since Ethereum is dealing with people"s money, we can assume that there will be people checking the transactions to see if any transaction is fraudulent.
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