Rollups

A layer one chain is a primary blockchain such as Bitcoin or Ethereum. Several measures have been introduced to help scale L1 chains by moving work over to other Layer 2 secondary chains. A “Rollup” is a popular L2 scaling solution used by Ethereum and other token blockchains. A Roll-Up works using the transaction data on Layer 1 and moving the transaction verification computation to an L2 chain. This frees up the computational power of L1 and offloads the heavy lifting to the L2 chain. Rollups use smart contracts which enforce the correct transaction execution and data integrity, acting as a bridge between the Layer 1 and Layer 2 chains.