Ethereum is the 2nd most valuable and popular cryptocurrency after Bitcoin. The main challenge it’s been facing for a while is its high gas fees. With users having to pay hefty amounts for using the network, the development of plenty of scaling solutions began to be created. 

There exist 2 solutions to deal with the Scalability problem, 

On-chain Scaling

Layer 1 scaling, or on-chain scaling, is the process of increasing transactions that can be fit into the Ethereum blockchain in order to increase the capacity of the core blockchain.

Off-chain Scaling

This solutions indirectly scale the primary blockchain by adding more layers to process transactions without using the primary blockchain. It is also referred to as Layer 2 scaling, which adds another layer above the main layer.

What are Roll Ups?

Roll-ups are a type of Off-chain scaling solution that processes transactions in parallel to the mainnet for improved scalability. Roll-ups provide a general solution to the Ethereum scaling issue while having all the advantages of the security of the Ethereum network. The transactions are made on the secondary layer, but the transaction data are then posted on the main network, so this approach is still secure and reliable. This helps reduce the gas fees and improve blockchain adoption by increasing participation.

There are mainly 2 types of roll-ups

• Optimistic rollups: how optimistic rollups work is by assuming all transactions created are valid by default, unless someone makes a dispute. If no one challenges the validity of the transaction, then they are considered valid and approved. Examples include optimism and Arbitrum.
• Zero-Knowledge(ZK) Rollups: they are a cryptography-based technique used to validate proof, to prove that each batch of transactions is valid before final submission. Examples include Loopring and STARKWARE.

How to Build a Roll-Up

To build your own roll-up up it is important to understand the project requirements

1. Set up your rollup

   Understand that, depending on the requirements, there will be changes made in your roll-up architecture and configuration. Before discussing the development of the project, ensure that you have all the necessary tools and dependencies required.

2. Embedding Infrastructure

   This is the next crucial step, which plays a vital role in ensuring the smooth running of the roll-up. Use Remote Procedure Call (RPC) – a protocol that enables communication between layer 1 and layer 2 decentralized applications. After integrating the RPC test, the deployment using the “Testnet Faucet” allows you to simulate transactions without charging gas fees. Monitor your roll-up activity; it is essential for maintaining security and integrity. Equip a variety of technical add-ons that can help enhance your rollup functionality. 

3. Post Development Management

   It is important to monitor and maintain roll-up performance after deployment. You can take advantage of available resources to simplify the process. Proactive management helps automate updates and optimizations to handle updates, load balancing without manual interventions. Automated monitoring helps monitor the health of your roll-up 24/7. Real-time alerts help identify errors like multiple failed payments.

Advantages of Deploying Your Own Rollup

• Off-chain transactions require significantly lower transaction fees compared to the mainnet, which makes it an ideal solution for dApps that require a high volume of transactions.
• Roll-ups help to increase the throughput of the primary blockchain by working on another layer, which is linked to the primary layer. This enables the dApps to scale without affecting the mainnet.
• You have the freedom to customize your network parameters, which allows you to edit proof of submission frequency and smart contract rules to your specific requirements. 

Closing Thoughts

Rollups are layer 2 scaling solutions that allow you to scale the mainnet without being directly involved in it, but having all the secure features that it provides. Blockchain roll-ups provide enhanced transaction speed without being affected by the inflating gas fees by grouping multiple Off-chain transactions.

FAQs

A layer-2 scaling solution that reduces congestion on the Ethereum network.

According to our data, it could cost $36,000 per year to run a rollup on mainnet, plus on-chain DA costs.

Rollups represent a technology that involves processing blockchain data Off-chain and submitting a proof of transaction on-chain.

A type of blockchain rollup that assumes all the transactions are valid and approved unless the transaction is challenged and disputed within a given time.

According to our report, Arbitrum is better than optimism since it has extensive liquidity, which makes it a solid choice for traders seeking efficient transactions.