ROLLUPS - The Ultimate Ethereum Scaling Strategy? Arbitrum & Optimism Explained

So what are rollups all about? What’s the difference between optimistic and ZK rollups? How is Arbitrum different from Optimism? And why are rollups considered to be the holy grail when it comes to scaling Ethereum? You’ll find answers to these questions in this video.
Ethereum scaling has been one of the most discussed topics in crypto. The scaling debate usually heats up during periods of high network activity such as the CryptoKitties craze in 2017, DeFi Summer of 2020 or the crypto bull market at the beginning of 2021.
During these periods, the unparalleled demand for the Ethereum network resulted in extremely high gas fees making it expensive for everyday users to pay for their transactions.
To tackle this problem, the search for the ultimate scaling solution has been one of the top priorities for multiple teams and the Ethereum community as a whole.
In general, there are 3 main ways to scale Ethereum or in fact, most other blockchains: scaling the blockchain itself - layer 1 scaling; building on top of layer 1 - layer 2 scaling and building on the side of layer 1 - sidechains.
When it comes to layer 1, Eth2 is the chosen solution for scaling the Ethereum blockchain. Eth2 refers to a set of interconnected changes such as the migration to Proof-of-Stake (PoS), merging the state of the Proof-of-Work (PoW) blockchain into the new PoS chain and sharding.
Sharding, in particular, can dramatically increase the throughput of the Ethereum network, especially when combined with rollups.
If you’d like to learn more about Eth2 you can check out this video here.
When it comes to scaling outside of layer 1, multiple different scaling solutions have been tried with some mixed results.
On the one hand, we have layer 2 solutions such as Channels that are fully secured by Ethereum but work well only for a specific set of applications.
Sidechains, on the other hand, are usually EVM-compatible and can scale general-purpose applications. The main drawback - they are less secure than layer 2 solutions by not relying on the security of Ethereum and instead having their own consensus models.
Most rollups aim at achieving the best of these 2 worlds by creating a general-purpose scaling solution while still fully relying on the security of Ethereum.
This is the holy grail of scaling as it allows for deploying all of the existing smart contracts present on Ethereum to a rollup with little or no changes while not sacrificing security.
No wonder rollups are probably the most anticipated scaling solution of them all.
But what are rollups in the first place?
📖 Rollup-centric Ethereum Roadmap by Vitalik Buterin ► ethereum-magicians.org/t/a-ro...
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[@Finematics]

❓ What do you think about rollups and other scaling solutions? Comment down below 👍 Hit the like button if you enjoyed this video 💛 Support Finematics on Patreon and join our Discord community ► www.patreon.com/finematics 🐦 Follow Finematics on Twitter ► twitter.com/finematics 📘 Check out our FREE Guide to DeFi ► finematics.com/guide-to-decentralized-finance/

[@chrisn836]

Radix DLT with their Cerberus consensus algorithm is the only legitimate scaling solution for DeFi that I've seen. I think it will become clear by the end of this year that Ethereum, Solidity, Layer 2 solutions, just aren't capable enough.

[@lherfel]

finematic withdrawal : P

[@riongull]

One of the only channels I don't try 1.5x or 2x on. Great dense content, no fluff.

[@Finematics]

thanks! :)

[@gylandrewful]

U took the words out of my mouth lolol

[@alois6909]

You made me realize it's the only channel I don't watch at 1.5x speed too. He is not even speaking that fast, it's the perfect pace.

[@kiwanlandrethsmith]

I do sometimes, but on my third or 4th watch ;)

[@aideise3781]

Haha agree. It's hard to really understand anything otherwise. The information is so condensed that you can't miss a single second.

[@siavash1523]

That was hell of an explanation! Great work. Really appreciate it.

[@LexFez]

Top quality and super informative as always. Keep up the good work.

[@shishirkakhandki9230]

I am half way through and this is the best video on rollups I have come across. Thanks a lot!

[@daviddinh7487]

Thank you! Your explanation is easily clear and understanding. Of course, I will read and investigate more to understand deeply.

[@quattrocity9620]

You should have WAAAYY more subscribers. You're educational content is top notch 👌🏽

[@huynguyenquoc5610]

A very good explanation and well worth the read. Thank you!

[@yogamac]

Informative and Good visuals. A little fast for me at this point of my journey, so had to keep rewinding, but I took notes. Thanks big dawg.

[@Daniel-xaogjeyh]

you are really good at explaining things, very dense but still very clear

[@robertodeisidro5727]

I have no words for how good this video is.

[@nunodveiga]

Another 💣 Congrats and thanks for all these 💎

[@eddybeghennou8682]

You are doing an incredible work with your videos, thanks 🙏

[@Finematics]

thanks! :)

[@marcusroark9197]

Love it, perfect timing as always!

[@Finematics]

thanks! :)

[@nixonmalik2500]

You should do a video on blockchain consensus mechanisms and could go into deeper detail of mining, PoS, and other “newer” ways like proof of space and time

[@Finematics]

Great suggestion!

[@bozo89CRO]

@@Finematics agree. Also PoS versions like LPoS, DPoS, ORV... and their impact on energy usage, speed and centralization

[@bazmalaza85]

think so too...if w this video here u intend to address beginners, a short intro to basics at 1st might be advantageous for comprehension.

[@fredericklevins6104]

Forever one of the greatest channels ever. I’ll always recommend.

[@Finematics]

thank you!

[@impostervt]

Going to be an interesting fall & winter with all this rolling out.

[@Finematics]

For sure! :)

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④🇺🇸

[@mitast]

Amazing channel! Thank you for the valuable content.

[@Finematics]

thanks for watching! :)

[@user-xh4xp5by7r]

Great channel dude! thank you so much

[@pcl5636]

Thank you so much! Can't wait to watch this a few times haha

[@Finematics]

That's the way to do it :) Thanks for watching!

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④🇺🇸

[@Geeza-ty4pg]

great content so well explained

[@Vlad-ld9cu]

Amazing work, thank you.

[@Leoninmiami]

thanks for the great content!

[@jpo.9958]

best defi channel. good job guys!

[@Finematics]

thanks!

[@peter.g6]

Amazing video. Would be interesting to see how this tech has evolved in the one year since it was published.

[@TropicalBrick]

Your content is always god tier!

[@Finematics]

thanks!

[@juri8723]

ZK Rollups are incredible!! Thanks for the video, makes it so much easier to explain to family and friends

[@seancranley2541]

great video mate. thank you

[@dmytroboiko1]

Super useful, thanks 🙏

[@r3I4x]

Amazing explanation. I couldn’t find a video like this anywhere. Well done. ETH eco just needs some incentives for users to try these layer 2s now.

[@tmac917]

Ok so how do i make money off this, like, can i buy shares in 'offchain Lab' (arbitrum)? how do i materialise this knowledge

[@drewdurant3835]

@@tmac917 do some research and invest in the ecosystems.

[@tmac3983]

@@drewdurant3835 asking questions is research. But no1 seems to have the answers.

[@andrzej-antonowicz]

you are the best! thank you for the video

[@Finematics]

thank you! :)

[@aD1i]

Insane video! Thx my man!

[@finematics7056]

Good review,Awesome💗for crypto/guidance/investment🌎 ✙𝟏𝟑𝟏𝟓𝟓𝟏𝟒𝟎𝟒𝟔𝟕✉️✉️✉️▪️

[@arjoon]

Great video as always!

[@Finematics]

Thanks again!

[@michamicha691]

Thank u for this explanation

[@crapster0]

Very good and understandable presentation

[@dessports3585]

Love your videos

[@NassimSherif]

Thank you for making these videos

[@Finematics]

you're welcome! :)

[@ianjh89]

Excellent video

[@jasongrig]

epic video. very interesting that sidechains will be cheaper than rollups because rollups need a lot of space on L1

[@scienceoffin]

Good stuff!

[@sleepygrumpy]

amazing content

[@Resciacastro1]

just found an article yesterday about "proof of humanity", would like to know more about different/Newer consensus protocols. Always great content!

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④🇺🇸

[@nalaeuteamo]

Your videos are amazing 👏

[@Finematics]

thanks!

[@helenajackson6305]

Amazing video... Based Rollups are indeed a game-changer, offering a seamless way to leverage Ethereum's robust sequencer for transaction ordering. It's interesting to compare this with "Taiko's" work on BBR and BCR, which also aim to enhance Ethereum's scalability and efficiency. The collaboration between these technologies could significantly strengthen the Ethereum network, making it more cohesive and powerful.

[@francoperez03]

Thanks a lot!!!

[@issintf925]

These videos are awesome.

[@finematics7056]

Good review,Awesome💗for crypto/guidance/investment🌎 ✙𝟏𝟑𝟏𝟓𝟓𝟏𝟒𝟎𝟒𝟔𝟕✉️✉️✉️▪️

[@salmanhussain3835]

This is hardcore stuff... lol. Excellent info and presentation btw.

[@zacs8654]

Best Crypto channel on KZbin! So sick of Moonboys.

[@JosephDungee]

EXCELLENT! I'm curious are there people / companies acting as checkers for these transactions and if so, how are they compensated?

[@jmlason8862]

Love your videos! Thank you!

[@Finematics]

Amazing! Thanks for watching :)

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④🇺🇸

[@lopypop]

This video was a lot quicker (and easier!) to understand compared to Vitalik's long explanation on Lex Friedman's podcast a while back

[@maxmercor5772]

He explained the core of how it works way better

[@internerperson23473]

awesome video! very clear for noobs to understand

[@Finematics]

great to hear! :)

[@bbs32]

the animation of the hand to me is just distracting... but good video of explaining this concept. thank you!

[@crypto7066]

Hey Finematics, can you please do an actual brief and simple explanation on the Balancer protocol? I think people would be really interested in hearing about it.

[@stavestave4273]

Fantastic stuff! But you forgot to mention Mute working on ZK-rollups.

[@admin3753]

Thanks~~~~< for watching_and don't forget••• to hit the like>watsap ➕ ① = ④ = ⓪ = ⑤ = ④ = ⑥ = ① = ⓪ = ⑦ =② =④..📲....

[@ignaciofalchini8264]

amazing bro

[@Finematics]

Thanks! 🔥

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④🇺🇸

[@suelin7278]

But really excellent video!!

[@eddybeghennou8682]

thanks

[@dessports3585]

I don't know which one will win but exited to see Eth to be scalling more than 100000 trx persecond hope many new dapp and other use case pop up...

[@alexk4096]

Really nice!

[@Finematics]

thanks!

[@jacobalvarez7515]

Wow wow amazing.

[@lherfel]

Finematics - can you comment on the security of the Arbitrum and Optimism bridges? Are they secured by Keys held by someone? Multisig? Thanks again, you are the best I know of explaining Crypto. Excellent video as always

[@Finematics]

I think they'll be initially secured by multisigs with a plan to fully decentralize later, but let's wait when they fully launch to see that.

[@terrywills3792]

Thanks man

[@finematics7056]

Good review,Awesome💗for crypto/guidance/investment🌎 ✙𝟏𝟑𝟏𝟓𝟓𝟏𝟒𝟎𝟒𝟔𝟕✉️✉️✉️▪️

[@LeoClark]

Awesome 👏👏👏

[@Finematics]

thanks!

[@evgenymitsik8220]

Thank you for the video! Please, explain to me why the party that submitted fraudulent transaction to level 1 is punished if it do not verify the correctness of the transaction?

[@KasperBirkelund]

Awesome! How does Polygon (MATIC) fit into this?

[@Receive_]

Thanks for video! Sequencer arbitrum, how it works?

[@damminers49]

Shoutout to the ETH holders

[@fairdeal7180]

great

[@petersu4869]

thsi guy is a genius

[@Bldkkr]

I'm staking SNX on Optimism since April. Very smooth. Limited liquidity on Uniswap so far. Can't wait to see more apps go live.

[@reisefan512]

Hello. Could you please make a video about tokenized stocks?

[@kuku8122]

How can we get involved with l2’s Zk roll ups specifically

[@mhzboxing1759]

Interesting...

[@user-gu3uz3id7x]

Can you explain rollup for me a bit more plz? I’m kinda confused. If you make 1000 txns on the roll-up chain and settle that 1000 txns on the ETH chain, how are you avoiding paying gas fees for the 1000 txns being settle eventually on the ETH chain? If there will actually be only 1 txn being made on the ETH chain for that 1000 txns made on the rollup chain, how does security exactly work for each transaction on the ETH chain? How are the 1000 txns exactly confirmed and secured at the transaction level per ETH addresses? Are there 1000 ETH addresses involved?..

[@duran9664]

😩Why you don’t make videos more often. 😭 You are one of the best crypto channel in the world.

[@Finematics]

thanks! full time job is taking most of my time, but I'll try to create more content from September :)

[@TheSpacemanSpliff]

Polygon has absorbed Hermez Network and will be offering ZK Rollups as another part of their Ethereum scaling suite.

[@suelin7278]

Also why won't the validator collude with the entity producing the transaction if the oint of transaction is greater than the bond they have to put up to validate a transaction

[@kallehed6330]

How do rollups compress multiple transactions into a smaller size? Or did I misunderstand how they work?

[@liangguo1500]

As for optimistic rollup, If the challenge can't get any benefit for a long time, then the challenger will no longer protect the system, then the system will be very vulnerable

[@danielbenson2653]

true, but it literally only takes 1 actor to check. So, theoretically institutions or individuals making significant transactions on on the network will have the incentive to check the rollup that there transaction is in for the security of their funds but at the same time verifying all the other transactions in that roll up as well. I mean imagine you converted ETH to 1,000,000 USDC. Wouldn't you at least run a verification of the block that transaction was in to make sure you weren't scammed?

[@Truechannel182]

nice

[@blablablerg]

great video. Can you do a video about ZK-snarks? How can it only submit a proof and ethereum knows that it is not fraudulent? Of course that is why it is called zero knowledge, but it seems strange that it can work.

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④🇺🇸

[@yusufpintar]

explain ploy network attack please

[@SufyanSattar]

Great work i came here through **Crypto Sangat**

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④🇺🇸

[@alexosorio18]

Could you make a video on Polygon Hernez zk rollups? Thanks

[@finematics7056]

Good review,Awesome💗for crypto/guidance/investment🌎 ✙𝟏𝟑𝟏𝟓𝟓𝟏𝟒𝟎𝟒𝟔𝟕✉️✉️✉️▪️

[@notlessgrossman163]

Method four: use another less congested chain. The same EVM code will run on other compatible chains.

[@Finematics]

that wouldn't be secured by the Ethereum consensus, but it's basically the same as sidechains

[@thinkingonyx847]

Can you do an updated version of this video??

[@Finematics]

Yes, a video about the current state of L2s is in the pipeline!

[@leet6497]

You should draw an NFT, I should buy it for sure!

[@ashutosh__pathak]

Sharding is no longer on the Ethereum 2.0 roadmap because of how good zkRollups and zkEVMs are now. Great video nevertheless, considering this was posted more than a year ago when it was on their roadmap.

[@BFreshHB]

I’m very optimistic about Arbitrum

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④.🇺🇸

[@fRutrn]

so, in optimistic rollups, if someone clears your wallet leaving you with nothing, you cannot dispute, because you don't have anything to bond?

[@BucherLaw]

HBT is the future of rollup tech for the DAO world

[@Dannydrinkbottom]

this video is more or less the same as the Ethereum layer 2 scaling explained but I still appreciate the knowledge.

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④.🇺🇸

[@WORLDOUTOFEARTH]

Please Make more video on PIT ( Pitbull) as its a community driven Pitbull is a self-staking token abandoned by its creator, raised by the community

[@tmac917]

Ok so how do i make money off this, like, can i buy shares in 'offchain Lab' (arbitrum)? how do i materialise this knowledge

[@nikopzd]

Are rollups like a smart contract pos version of the btc pow lightning network then?

[@rojancrypto3068]

Thanks for watching. Send a direct msg for further questions,guidance to invest in@+📲✉️ ① ④ ④ ② ④ ④ ④ ⓪ ⑨ ① ④🇺🇸

[@wealthbyGDP]

Doesn’t Mina Foundation have zkRollups?

[@ZerobitInvestment]

why no mention of polygon?

[@suelin7278]

Further is a situation where you have thousands of transactions a day, who is going to pick out the ones that are fraudulent, plenty will slip through the cracks

[@PaulWackerow]

❤️