Crypto rollups: How transaction settlement works on Ethereum

Crypto rollups provide a solution for scaling Ethereum by executing transactions away from the main blockchain and then submitting data and state updates back to Ethereum for verification. A key feature of rollups is that a transaction may appear confirmed on a rollup while still awaiting final settlement or withdrawal on the Ethereum network. Rollups batch user activity off-chain, grouping multiple transactions and then posting both their transaction data and a proposed new state to Ethereum Layer 1. The rollup’s verification processes and Ethereum’s consensus mechanism together decide whether the new state is accepted. There are two main types: optimistic rollups and zero-knowledge (ZK) rollups.

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