Ethereum is at the center of discussions about the scaling and sustainability of blockchain networks. The main question that arises is how the network can secure its long-term performance while improving the user experience and reducing transaction costs. One of the promising technologies being discussed in this context is so-called “based rollups”. This technology could be the answer to many of Ethereum’s current challenges. In this article, we will explore what based rollups are, how they work, and what benefits and challenges they bring to the Ethereum network.
What Are Rollups and Why Do We Need Them?
Rollups are a layer 2 scaling solution that aims to take the transaction load off the main blockchain, i.e. layer 1 (Ethereum), and move it to a second layer (layer 2). The transactions are processed outside the main blockchain and only the results of these calculations are ultimately stored on the main blockchain. This significantly reduces costs and the computing load on layer 1.
There are different types of rollups, including “optimistic” rollups and “zero-knowledge” (ZK) rollups. Optimistic rollups assume that all transactions are valid unless they are proven invalid. ZK rollups, on the other hand, use mathematical proofs to verify the validity of transactions.
The problem that rollups solve is that of scalability: Ethereum is currently heavily congested, and transaction fees are often prohibitively high. Rollups offer a solution by enabling more transactions per second at a fraction of the cost of Layer 1.
Relevant article: Blockchain Layer 1 vs Layer 2: What’s the difference?
What Are Based Rollups?
Based rollups are a specialized form of layer 2 rollups that are characterized by their ability for “synchronous composability” and other advanced features. Essentially, it is an extension of existing rollup technology that aims to process transactions between different Layer 2 (L2) networks and between L2 and the Ethereum main chain (Layer 1) faster and more efficiently.
Synchronous composability as a key feature:
A key feature of based rollups is synchronous composability. This makes it possible for transactions between different rollups or between a rollup and the Ethereum main chain to take place in real time. This means that a transaction on one rollup (e.g. a decentralized exchange such as Uniswap on layer 2) can be seamlessly transferred to another rollup or layer 1 and executed without delay. This capability represents a significant improvement over previous rollups, where such transfers are often time-consuming and resource-intensive.
Synchronous composability is achieved through the simultaneous verification of all participating networks. This means that the cryptographic proofs required to validate and secure the transactions must be generated in real time and synchronized on all chains involved. This significantly increases efficiency, as the transactions can be executed immediately after initialization without having to wait for a separate confirmation of validity.
Use of “Base Boosted Rollup Stack”:
Based Rollups use what is known as a “Base Boosted Rollup Stack”, an advanced architecture that combines several innovative technologies to maximize transaction efficiency and security. One example of this is the use of special pre-confirmation mechanisms that allow transactions to be considered valid almost immediately, before they are fully finalized on the main chain.
Another important component of the Base Boosted Rollup Stack is its horizontal scalability. Instead of boosting the performance of a single blockchain, this architecture allows multiple rollups to work in parallel, all accessing the same base chain. For example, in a network using multiple rollups, thousands of transactions can be processed simultaneously without overloading the main chain. This horizontal scaling is supported by the concept of “synchronous availability”, where all rollups involved can access and update the same state in real time.
Increasing efficiency and reducing costs:
The efficiency of based rollups is also reflected in the way they handle data availability. While traditional rollups, especially optimistic rollups, require a large amount of data to be stored on the main chain, based rollups allow for more efficient use of storage. By integrating technologies such as multiproof mechanisms and zero-knowledge proofs (ZK proofs), the data required for transactions can be verified in real time, eliminating the need to store large amounts of data on layer 1.
The savings in terms of data costs are significant: according to current estimates, Based Rollups could reduce transaction costs by up to 90% compared to current Layer 1 solutions, while reducing network congestion as less data needs to be processed across the main chain. This enables a higher number of transactions per second (TPS) and makes Ethereum more competitive as a platform overall.
Real-time proofs and verification in less than 12 seconds:
Another key technology used in Based Rollups is “real-time proofs” – proofs that are generated and verified in real time. These allow for instant confirmation of transactions within a time frame of less than 12 seconds, which is the current block time on the Ethereum main chain. By utilizing real-time proofs, users can have their transactions confirmed virtually instantly, significantly improving the user experience and reducing the risk of double-spending or other manipulation.
To enable these real-time proofs, a technology known as a “multi-proof system” is used. This is a security architecture that combines multiple types of cryptographic proofs to ensure the integrity and security of the network. The multi-proof system ensures that the validity of transactions does not depend on a single type of proof, but that multiple independent proofs are used to ensure a high level of security.
Extension of functionality through boosted rollup mechanisms:
Boosted rollup functionality allows developers to use smart contracts and applications originally deployed on Layer 1 (Ethereum) directly on Layer 2 without having to re-implement them on Layer 2. This means that new rollups added to the network can automatically access any existing applications that are already available on Layer 1. This makes it easier to launch new applications and ensure that users can seamlessly switch between different rollups without having to move their funds or applications.
In summary, by combining advanced technologies and mechanisms such as synchronous composability, real-time proofs and boosted rollup functionality, based rollups provide a powerful solution to many of Ethereum’s current scaling problems. They enable more efficient use of network capacity, reduce costs and improve the user experience – all critical factors in ensuring the long-term growth and value of the Ethereum network.
Relevant article: How rollups are revolutionizing blockchain technology – A simple guide
The Challenges of Synchronous Composability
One of the main innovations of based rollups is synchronous composability, which is about transactions taking place between different rollups or between layer 1 and layer 2 in real time. However, this is technically complex as it requires that all networks involved can access and update the same state without delays.
The biggest challenge here is that the data exchanged between the different layers must be consistent and secure at all times. To achieve this, various validation methods must be used, including new types of cryptographic proofs and multi-proof mechanisms. This requires not only significant computing resources, but also a sophisticated infrastructure to ensure that transactions can be processed efficiently and securely.
How Based Rollups Improve the Scalability of Ethereum
Based rollups offer a promising solution to Ethereum’s scalability problem. Through synchronous composability, they can drastically improve the efficiency of transaction processing by allowing multiple rollups to communicate and transact simultaneously and in real-time. This leads to better utilization of blockchain resources and reduces the need for users to manually perform transactions between different layers.
Another advantage of based rollups is the ability to scale horizontally. In contrast to vertical scaling, where the capacity of a single network is increased, horizontal scaling allows multiple rollups to be operated in parallel. This means that more transactions can be processed simultaneously, further increasing the overall performance of the Ethereum network.
Potential Challenges and Limitations of Based Rollups
Although based rollups offer many benefits, there are also some challenges that need to be addressed. One of the biggest is the complexity of implementing and maintaining such a system. Synchronous composability requires precise coordination between the different rollups and layers, which is both technically demanding and resource-intensive.
In addition, there is a risk that the implementation of such solutions could lead to centralization, as only a limited number of entities may be able to operate the necessary infrastructure. This could limit competition and affect the decentralization of the network.
Another problem is the issue of security. As based rollups enable fast confirmation of transactions, there is a risk that large losses could quickly occur if one of the rollups is attacked. Therefore, additional security measures, such as multi-proof mechanisms and real-time monitoring, need to be introduced to minimize such risks.
The Future of Based Rollups and Ethereum
The introduction of based rollups could be a turning point for the future of Ethereum. They offer a promising way to improve the scalability of the network while reducing transaction costs and improving the user experience. The main advantages are synchronous composability, horizontal scalability and the potential reduction of network congestion.
However, it is still unclear how quickly and to what extent based rollups will actually be used in practice. Many of the technical innovations required for the success of this technology are still under development and it will take some time before they are fully implemented and integrated into the Ethereum network.
Conclusion
Based rollups offer an innovative solution to many of Ethereum’s current challenges. With their ability to process transactions more efficiently and securely, they could revolutionize the way we interact with blockchain technologies. However, they still face a number of challenges that need to be addressed before they can realize their full potential. In the meantime, it remains to be seen how this technology will evolve and what role it will play in the future of Ethereum.