Thread by @eli5_defi

#GM!
1/ With recent $OP #airdrop, we present #visualguide for #Ethereum Layer 2 #Rollups Solutions. Why it's needed? How does it work? and the future of #scaling in Ethereum

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $ETH

2/ L2 rollups work by executing transactions outside of Layer 1, #Rollups #solution has two methods, Optimistic and Zero-Knowledge.

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $OP $ETH #Airdrop

3/ Optimistic rollups don't do any computation by default, all transactions are legitimate. #Fraud-proof #mechanism is set as a preventive measure.

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $OP $ETH #Airdrop

4/ Dispute resolution mode is triggered if fraudulent transactions are marked by the verifier. To incentivize this #mechanism, a fidelity bond is placed as a reward/ punishment.

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $OP $ETH #Airdrop

5/ Optimistic rollups have their own merit and demerit. However, this solution is mostly adopted for general purposes and is more versatile than ZK rollups

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $OP $ETH #Airdrop

6/ Different from Optimistic, #ZK rollups rely on the issuance of validity-proof as #cryptographic clearance. This allows transactions instantly verified in layer 1.

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $OP $ETH #Airdrop

7/ ZK rollup inner workings can be explained by using Ali Baba's Cave Parable. There are two ZK technologies that are commonly used STARKs and SNARKs.

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $OP $ETH #Airdrop #SNARKs #STARKs #EVM

8/ With these features, ZK rollups have an edge in a specific transaction. However, since the technologies itself is complex, some of the platforms may not compatible with #EVM

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $OP $ETH #Airdrop

9/ Many platforms already building on layer 2 to benefit from the rollups solution.

@optimismPBC
@arbitrum
@MetisDAO
@bobanetwork
@Immutable
@zksync
@loopringorg
@dYdX
@StarkWareLtd
@aztecnetwork
@zkLend

#DeFi #Crypto #Ethereum #Arbitrum #Optimism #L222 #ZKSync $OP $ETH

10/ L2 Rollups solution is one of the scaling solutions for Ethereum. Other solutions can work harmoniously and complement to ensure Ethereum's scalability and fulfil its vision.

#DeFi #Crypto #Bitcoin #Ethereum #Arbitrum #Optimism #L222 #ZKSync $OP $ETH #Airdrop

11/ Article and references about rollups can be found on our notion page below, the "Reading Material" section. (updated regularly)

eli5defi.notion.site/eli5defi/Eli5D…

Shout-out to the account below that has amazing educational content
@The_ReadingApe
@epolynya
@VirtualKenji
@blocmatesdotcom
@DeFi_educator
@knowerofmarkets
@rektdiomedes
@alpha_pls
@0xHamz
@JiraiyaReal
@thedefiedge
@DeFi_Made_Here
@OmarOnChain
@BowTiedNightOwl