A growing industry of rollup technologies seeks to address Ethereum’s key scalability issues of slow throughput and high transaction or gas fees. Rollups bundle a large number of transactions off the main blockchain and then return the bundle to Ethereum for recording. There are two types of rollups: Zero-Knowledge, which uses computer algorithms to verify transactions, and Optimistic, which optimistically trust that the transactions are valid. People watching an optimistic network have a week to challenge a potentially fraudulent transaction, and the rollup then runs a fraud proof to verify that transaction.
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