Can the Overhead Be Amortized across Multiple Financial Transactions?
Yes, the computational overhead of proof generation is amortized in batching systems like ZK-Rollups. A single, complex proof is generated to validate a large batch of hundreds or thousands of transactions.
The high cost of generating that one proof is then divided among all the transactions in the batch, resulting in a very low cost per individual transaction.
Glossar
Batching Systems
Architecture ⎊ Batching Systems represent the specialized architectural layer designed to aggregate numerous individual trading instructions, such as option exercise requests or perpetual swap liquidations, into a single, cohesive data package.
Computational Overhead
Computation ⎊ The computational overhead inherent in cryptocurrency, options trading, and financial derivatives stems from the resources ⎊ processing power, memory, bandwidth ⎊ required to execute complex algorithms and manage high-frequency data streams.