What is an Ethereum or Bitcoin rollup?
Rollups have the potential to process thousands of transactions per second, with cheaper costs for Ethereum and Bitcoin.
A rollup is a tool used by cryptocurrency networks to process multiple transactions faster and cheaper off the main chain. These types of solutions are known as second layers (layer 2), which operate connected to a main network such as Ethereum, Solana and even Bitcoin, generally through smart contracts that summarize large batches of transactions into a single transaction that is recorded. in mainnet accounting. In practice, a rollup allows you to reduce the value of commissions for users.
A rollup system is responsible for managing and validating cryptocurrency or token transactions. In addition, it enhances what has been called DeFi or decentralized finance. The goal of a rollup is to summarize a set of operations or data to simplify the computational operations of core networks, making them more efficient and scalable.
The concept of rollup (a word that translates as rolling up) emerged at the dawn of the cryptocurrency era. It comes from an idea disclosed by Vitalik Buterin, co-founder of Ethereum, in 2014, when he described a system that he then called “shadow chain.”
A rollup system is responsible for managing and validating cryptocurrency or token transactions. In addition, it enhances what has been called DeFi or decentralized finance. The goal of a rollup is to summarize a set of operations or data to simplify the computational operations of core networks, making them more efficient and scalable.
#BinanceTurns7 #BinanceTournament" #Bitcoin #solana #Binance
