🚀 **Bitcoin Layer-2 Rollups Face Economic Hurdles, Says Galaxy Research** 🚀

Galaxy Research has raised eyebrows with its latest report on Bitcoin Layer-2 (L2) scaling solutions, particularly rollups. While these solutions promise cheap, fast, and decentralized transactions, they might hit a financial wall due to Bitcoin’s limited blockspace and high costs. 📉

Bitcoin’s blockspace is capped at 4MB per block, and rollups using zero-knowledge (ZK) proofs can consume up to 10% of this space per transaction. With Bitcoin blocks consistently full since January 2023, this could lead to soaring transaction fees, making rollups economically unsustainable. 💸

The report suggests rollups might need to explore alternative data availability (DA) layers like Celestia or Near, or restructure as Layer 3 solutions to stay viable. The future of Bitcoin rollups hinges on balancing high costs with user attraction and revenue generation. 🌐

Stay tuned, BTC enthusiasts! 🌟