100-fold scaling of Ethereum through rollups is imminent

Ethereum is by far the largest smart contract blockchain in the world. Especially in the DeFi market, Ethereum has become indispensable. This is also attracting more and more investors. A few weeks ago, the ETH price reached a new all-time high of over 2,000 US dollars. But this rank is increasingly being disputed by competing platforms such as Cardano or Polkadot. The main reason for this is Ethereum’s insufficient scalability to date, reflected in ever-higher transaction fees.

Depending on the load, up to 30 US dollars can be charged for a simple transaction. Smart contract transactions often exceed 50 US dollars. The scaling problem should be solved by sharding with Ethereum 2.0 at the latest. But users do not want to wait until then. That is why various projects are working at full speed on Layer 2 solutions to improve scalability as quickly as possible. One of the promising layer-2 solutions are so-called roll-ups.

Scaling with rollups

With rollups, sidechain transactions are bundled or “rolled up” into a single transaction. This creates a cryptographic proof (SNARK = succinct non-interactive argument of knowledge), which flows into the Ethereum mainchain. Thus, all executions can take place on sidechains with rollups, while the Ethereum mainchain only stores transaction data…