What Is the Primary Difference between Optimistic Rollups and ZK-Rollups?
Optimistic Rollups assume transactions are valid by default and use a fraud-proof system where a challenge period allows anyone to dispute an invalid transaction. ZK-Rollups, conversely, use zero-knowledge proofs (specifically SNARKs or STARKs) to cryptographically prove the validity of every off-chain transaction batch before it is submitted to the Layer 1 chain.
This fundamental difference results in ZK-Rollups having near-instant finality on Layer 1, while Optimistic Rollups have a delay due to the challenge window.
Glossar
Computational Complexity
Analysis ⎊ Computational Complexity refers to the resources, typically time and memory, required by the network's nodes to process and validate transactions or execute smart contract functions relative to the size of the input data or the complexity of the algorithm itself.
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.
Fraud Proofs
Concept ⎊ Fraud proof refers to a cryptographic mechanism that allows a network participant to prove that a specific block or transaction is invalid without re-executing the entire computation.
Decentralized Finance
Architecture ⎊ Decentralized Finance, or DeFi, fundamentally reimagines traditional financial infrastructure through blockchain technology, specifically leveraging smart contracts to automate and execute financial agreements without intermediaries.
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.
Challenge Period
Dispute Resolution ⎊ The Challenge Period in blockchain governance or dispute systems denotes a specific time window allocated for network participants to contest a proposed action, a finalized transaction, or a validator's behavior.