Question 1

What is the primary function of rollups in the context of cryptocurrencies?

Accepted Answer

Rollups are a Layer 2 scaling solution for blockchains, particularly Ethereum. They work by processing transactions off the main chain (off-chain) and then grouping (or 'rolling up') these transactions into a single proof that's posted on the main chain. This significantly enhances the scalability of the blockchain by reducing the load on the main chain, leading to faster transaction times and lower fees.

Question 2

What is the difference between Optimistic Rollups and ZK Rollups?

Accepted Answer

Optimistic Rollups and ZK Rollups are the two main types of rollup technologies. The key difference lies in how they ensure the validity of transactions. Optimistic Rollups use a system known as 'fraud proofs.' Essentially, they assume all transactions are honest until proven fraudulent. If a fraudulent transaction is detected, the system reverts it.

On the other hand, ZK Rollups use 'validity proofs.' In this system, each transaction is verified before it's included in the rollup, using a cryptographic proof called a zk-SNARK (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge). This way, the system ensures that only valid transactions are included in the rollup, thus offering a higher level of security.

Question 3

How do rollup tokens factor into the overall rollup ecosystem?

Accepted Answer

Rollup tokens are integral to the functionality and security of their respective rollup ecosystems. They are often used in staking mechanisms to ensure network security. In some cases, they may also enable holders to participate in governance decisions about the network's future, much like shareholders in a company. Additionally, rollup tokens can be used to pay transaction fees within the rollup network. The market performance of these tokens often reflects the perceived value and adoption rate of the rollup solutions they represent.

#	Name	Price	1h %	24h %	7d %	Market Cap	Volume(24h)	Circulating Supply
37	Immutable IMX	$1.45	1.49%	7.76%	14.67%	$2.33B$2,333,179,682	$58,634,854 40,342,584 IMX	1,605,299,431 IMX
42	Arbitrum ARB	$0.5488	0.30%	7.80%	5.84%	$1.99B$1,985,032,621	$204,580,219 372,782,145 ARB	3,617,088,312 ARB
77	Nervos Network CKB	$0.01798	0.85%	1.80%	102.19%	$808.38M$808,378,745	$344,291,893 19,150,693,852 CKB	44,964,793,504 CKB
88	Starknet STRK	$0.4007	0.93%	7.55%	1.83%	$713.21M$713,206,929	$73,748,033 184,037,171 STRK	1,779,797,783 STRK
190	Altlayer ALT	$0.1059	6.62%	35.45%	33.49%	$236.47M$236,469,968	$64,162,876 605,751,193 ALT	2,232,474,196 ALT
199	Blast BLAST	$0.01027	0.63%	11.75%	16.63%	$207.3M$207,301,886	$56,372,597 5,488,977,490 BLAST	20,184,902,675 BLAST
230	Metis METIS	$33.56	0.17%	8.72%	10.77%	$199.88M$199,883,777	$7,821,896 233,085 METIS	5,956,334 METIS
243	Loopring LRC	$0.1246	0.64%	9.61%	2.46%	$170.32M$170,320,747	$11,970,413 96,061,365 LRC	1,366,806,970 LRC
276	Taiko TAIKO	$1.87	1.03%	22.89%	29.18%	$142.14M$142,136,132	$224,016,123 119,832,469 TAIKO	76,032,579 TAIKO
314	Cartesi CTSI	$0.1319	0.48%	6.51%	2.57%	$109.66M$109,662,301	$3,313,023 25,122,027 CTSI	831,548,564 CTSI
	Omni NetworkOMNI	$9.26
	Phala NetworkPHA	$0.11
	Automata NetworkATA	$0.09
	Boba NetworkBOBA	$0.21
	Hermez NetworkHEZ	$3.83
	ZKBaseZKB	$0.03
	SatoshiVMSAVM	$0.95
	Root ProtocolISME	$0.00

Top Rollups Tokens by Market Capitalization