Analysis and development of blockchain rollups

Abstract

The widespread adoption of blockchain technologies in the industrial and financial world is exceedingly increasing the number of transactions that need to be processed on these systems. If the number of transactions that are waiting for validation is much higher that the ones that can be included in a block, a fee competition between its issuers emerges. In may 2021, 71$ were payed as fee for a single transaction in the Ethereum blockchain. This research analyzes different proposals to scale up the amount of transactions that can be processed in a blockchain while preserving decentralization and security. Particularly, it focuses on the Optimistic Rollups solution, which wraps multiple off-chain transactions into a single on-chain one. A proof of concept is implemented and tested on the Ethereum chain to evaluate the scaling results.