Differentiate between Optimistic Rollups and ZK-Rollups.
Both are Layer 2 scaling solutions. Optimistic Rollups assume transactions are valid by default ("optimistic") and use a fraud proof system, where a time window is allowed for anyone to challenge a fraudulent transaction.
ZK-Rollups (Zero-Knowledge) use cryptographic validity proofs to instantly confirm the correctness of off-chain state transitions, offering faster finality but requiring more complex computation.
Glossar
Optimistic Rollups
Scalability ⎊ Optimistic Rollups represent a Layer 2 scaling solution for Ethereum, designed to enhance transaction throughput and reduce associated gas fees without compromising decentralization.
Rollups
Technology ⎊ These are Layer 2 scaling solutions designed to process numerous off-chain transactions and then submit a single, compressed proof of their validity back to the main chain for final settlement.
Validity Proofs
Cryptographic Integrity Check ⎊ The mathematical process by which receivers verify that a block or transaction has not been altered in transit or storage, relying on hashing and digital signatures.
Faster Finality
Determinacy ⎊ Faster Finality, within cryptocurrency and derivative markets, signifies a reduction in the probabilistic nature of transaction settlement, moving towards assured state confirmation.