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Essential Rollup Fundamentals for Your First Deployment

Updated on
Nov 14, 2024
Rollup
Custom Chains
RaaS

7 min read

Overview​

In the rapidly evolving world of blockchain, scalability has become a pressing need. As decentralized applications (dApps) grow in popularity, the demand for fast, cost-effective, and scalable solutions has given rise to Layer 2 rollups. Rollups are unique in their ability to increase transaction throughput without sacrificing the security of the underlying Layer 1 chain, such as Ethereum.

This guide provides a comprehensive overview of the essential concepts and configurations for deploying rollups, including the scalability challenge, types of Layer 2 solutions, data availability options, and custom rollup frameworks. Whether you are an enterprise, developer, or project team exploring Layer 2 rollup solutions, this guide will equip you with the foundational knowledge to make informed decisions.

What You Will Do​

  • Understand the Blockchain scalability challenge and the role of Layer 2 solutions
  • Learn about rollups, with a focus on Optimistic rollups and ZK rollups
  • Explore chain frameworks like the OP Stack, ZK Stack, and Arbitrum Orbit
  • Learn about rollup setup and configuration

The Blockchain Scalability Challenge​

One of the main challenges in blockchain technology is achieving a balance between decentralization, security, and scalability, often referred to as the Scalability Trilemma.

Traditional Layer 1 blockchains, like Ethereum, are highly decentralized and secure but struggle with scalability, leading to issues like high transaction fees and slow processing times. These limitations can hinder the growth and adoption of blockchain applications, especially as the demand for decentralized services continues to rise. Addressing these limitations has led to the development of Layer 2 (L2) and Layer 3 (L3) solutions.

What are L1, L2, and L3 Blockchain Layers?

  • L1 (Layer 1): The base blockchain layer (like Ethereum or Bitcoin), known as the settlement layer, where transactions are fully secured, decentralized, and recorded permanently, though it can get congested.

  • L2 (Layer 2): Built on top of L1, this layer processes transactions off-chain to improve speed and lower costs, then settles the results back on the L1 settlement layer (e.g., Arbitrum or Polygon).

  • L3 (Layer 3): Adds specialized layers on top of L2 for specific applications, like gaming or privacy, optimizing those functions while relying on L2 and L1 for security and settlement.

What are Layer 2 Solutions?​

Layer 2 solutions are protocols that are built on top of existing Layer 1 blockchains to enhance scalability and efficiency without compromising on security. By processing transactions offchain and then settling them on the main chain (i.e., Ethereum), Layer 2 solutions can significantly reduce congestion and lower transaction costs. This makes them a crucial component in the effort to make blockchain technology more scalable and user-friendly.

What are Rollups?​

Rollups are a powerful Layer 2 solution that enhances the scalability of blockchain networks by aggregating multiple transactions into a single batch processed offchain. This approach significantly reduces fees and increases transaction throughput, all while maintaining the security and decentralization of the underlying Layer 1 blockchain.

Rollups come in two main types: Optimistic Rollups and ZK Rollups. While both types bundle transactions, their validation methods differ. Optimistic Rollups assume transactions are valid by default and rely on fraud proofs during a challenge period. ZK Rollups, on the other hand, use cryptographic proofs (such as ZK-SNARKs) for immediate verification.

Custom Rollups​

While general-purpose Layer 2 networks like Arbitrum, Optimism, and ZKsync serve a wide range of use cases, there’s a growing trend for enterprises, companies, and specialized projects to create their own custom rollups. Custom rollups allow these organizations to tailor the Layer 2 solution to their specific needs, whether it’s optimizing for privacy, compliance, scalability, or integrating unique business logic.

Custom rollups offer the flexibility to address unique challenges and opportunities that may not be fully met by general-purpose Layer 2 solutions, making them an attractive option for organizations looking to innovate and scale in the blockchain space.

Chain Frameworks for Building Rollups​

When creating rollups, especially on Layer 2, choosing the right framework is crucial for the success of your project. Here’s a brief overview of three leading frameworks—OP Stack, ZK Stack, and Arbitrum Orbit—that you might consider when developing your rollup.

If you need a depth-level knowledge of rollup components and frameworks, check out our Comparison of Rollup Frameworks guide.

OP Stack (Optimism Collective)​

OP Stack, maintained by the Optimism Collective, is the backbone of the Optimism network and is designed to facilitate the launch of new Layer 2 (L2) and Layer 3 (L3) blockchains. Its modular architecture allows developers to customize different blockchain layers, such as the consensus or execution layers, making it highly adaptable to specific use cases. The framework is known for its seamless integration and development tools, which streamline the deployment of new chains and applications. OP Stack is also interoperable, aiming to create a Superchain where multiple OP Stack chains can interact effortlessly.

To learn more about OP Stack, check out our Builders Guide's OP Stack page.

Arbitrum Orbit (Arbitrum Foundation)​

Arbitrum Orbit builds on the advanced Nitro technology stack and allows developers to launch customizable Layer 2 and Layer 3 chains. It supports both rollup (optimistic rollups, used by Arbitrum One) and AnyTrust (data availability committee, used by Arbitrum Nitro) configurations, offering a high level of customization for governance, gas tokens, and data options.

To learn more about Arbitrum Orbit, check out our Builders Guide's Arbitrum Orbit page.

ZK Stack (ZKsync by Matter Labs)​

ZK Stack is a modular framework designed for building zk-Rollups powered Ethereum Layer 2 blockchains. It offers advanced customization options to fit unique use cases. ZK Stack is particularly strong in privacy and security, leveraging Zero-Knowledge Proofs (ZKPs) to ensure that transactions are verified without exposing underlying data. This makes it ideal for applications that require high security and privacy.

To learn more about ZK Stack, check out our Builders Guide's ZK Stack page.

What is Rollups-as-a-Service (RaaS)?​

Deploying and managing rollups can be complex and require significant expertise and resources. Rollup-as-a-Service (RaaS) simplifies this process, making rollup deployment accessible to a broader audience. With RaaS, developers and companies can build their own rollups without needing deep technical knowledge or a large infrastructure.

Deploying and managing rollups at scale can be challenging, especially with the need for high reliability, security, and performance. QuickNode’s Rollup-as-a-Service simplifies this by offering a fully managed solution optimized for long-term success.

Rollup Configuration​

When designing a rollup, understanding core configuration options is essential to achieving the right balance of security, scalability, and performance for your custom rollup. This section outlines key areas of rollup configuration to help you make informed decisions that align with your project’s goals.

Framework​

Rollup frameworks provide the foundational architecture for your rollup, offering modular customization options. Each framework, such as OP Stack, Arbitrum Orbit, or ZK Stack, comes with unique features and tools, allowing you to design a rollup tailored to your specific requirements, whether they involve transaction throughput, privacy, or EVM compatibility.

Check Chain Frameworks for a list of popular frameworks.

Data Availability Options​

Data availability refers to how and where your rollup stores its transaction data. Ensuring data availability is critical because it guarantees that all necessary transaction data is accessible for verification and dispute resolution.

Data can be stored either onchain or offchain using different data availability solutions.

Onchain​

Storing data on a blockchain ensures maximum security by inheriting the blockchain's security guarantees. This method can be more costly, but with the introduction of blob storage (EIP-4844), onchain availability has become more scalable and affordable for rollups.

Blobs

  • Leverages Ethereum’s blob storage (EIP-4844)
  • Provides improved scalability and reduced costs relative to traditional storage methods
  • Cheaper with large transaction volumes

Calldata

  • Uses Ethereum's traditional calldata for storing transaction data
  • Cheaper with lower transaction volumes

Offchain​

Offchain DA solutions, like Celestia, enable data to be stored offchain, reducing costs and boosting transaction throughput. While offchain solutions may not match the security level of onchain storage, they employ methods aimed at ensuring data integrity and reliability.

See Data Availability for a list of available offchain solutions.

Settlement Layer​

The settlement layer records the final state of transactions and handles dispute resolution. For many rollups, Ethereum serves as the primary settlement layer, but some frameworks support additional options. In certain configurations, such as those in Arbitrum Orbit, rollups can operate as Layer 3s by using another rollup as their settlement layer.

The settlement layer ensures the security and finality of transactions processed on the rollup by verifying and arbitrating proofs (fraud proofs for Optimistic rollups, validity proofs for ZK rollups).

Additional Tools and Products​

Rollup-as-a-Service (RaaS) platforms, such as QuickNode, often provide supplemental tools that enhance rollup functionality and improve the user experience.

  • Bridge UI: Facilitates cross-chain asset transfers between the settlement layer and rollup.
  • Block Explorer: Enables transparent exploration of transactions, addresses, and contracts, aiding in monitoring and debugging.
  • Faucet Integration: Provides users and developers with small amounts of tokens to get started on the network

Next Steps: Deploying Your Rollup​

With a foundational understanding of rollup configurations, data availability, and settlement layers, you’re ready to dive into the deployment process for your preferred framework. QuickNode’s Rollup-as-a-Service (RaaS) platform offers step-by-step guides tailored to different rollup frameworks, each optimized for efficient deployment and scalability.


Conclusion​

This guide has provided an overview of key concepts for configuring and deploying Layer 2 (L2) and Layer 3 (L3) rollups, including the challenges of blockchain scalability, custom rollups, rollup configurations such as framework, data availability options, settlement layer and the benefits of Rollup-as-a-Service (RaaS).

Whether you are a developer, enterprise, or project team exploring the potential of rollups, this foundational understanding of rollup configuration and data availability will equip you to make informed decisions for your blockchain solutions.

If you have questions, any ideas or suggestions, please contact us directly. Also, stay up to date with the latest by following us on Twitter and joining our Discord and Telegram announcement channel.

Additional Resources​


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Written by

Sergen Uysal

Last updated on
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