Optimistic Rollup (OR) is an Ethereum scaling solution that enables faster and cheaper transactions on the blockchain. It does this by batching many small transactions into one larger transaction, which reduces the amount of data stored on the Ethereum network, thereby reducing gas fees associated with each transaction. OR also uses a novel security mechanism known as “optimistic execution” to ensure that all batches of transactions are valid before they are included in a block.
OR works by creating two separate layers: an Optimistic Virtual Machine (OVM) layer and an Optimism Layer (OL). The OVM layer stores only state transitions—the actual changes made to data when transactions occur—while the OL layer stores references to these state transitions along with additional information about them such as sender addresses and amounts transferred. This segregation allows for more efficient processing of multiple transactions at once, resulting in lower gas costs per transaction compared to traditional methods like Plasma or Sharding.
The main benefit of using OR is its scalability; it can handle up to 2,000–2,500 TPS while still providing strong security guarantees against malicious actors attempting double spends or other forms of fraud. Additionally, since OR relies on optimistic execution rather than proof-of-work consensus mechanisms used in traditional blockchains like Bitcoin and Ethereum, it’s much more energy efficient than other solutions.
In conclusion, Optimistic Rollup provides a secure alternative method for scaling the Ethereum network while keeping costs low due to its innovative use of optimistic execution and segregated storage layers. With its ability to process up to 2000-2500 TPS while ensuring strong security guarantees against malicious activity, OR has quickly become one of the most popular scaling solutions available today for enterprise applications built on top of Ethereum’s platform
