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
36	Immutable IMX	$1.59	1.55%	11.20%	28.04%	$2.56B$2,560,186,437	$67,697,538 42,448,010 IMX	1,605,299,431 IMX
41	Arbitrum ARB	$0.5758	0.53%	5.54%	9.91%	$2.08B$2,082,673,085	$247,668,477 430,138,921 ARB	3,617,088,312 ARB
82	Nervos Network CKB	$0.01669	2.25%	6.84%	17.24%	$750.45M$750,454,975	$186,244,169 11,160,765,478 CKB	44,971,351,345 CKB
89	Starknet STRK	$0.4015	1.42%	0.89%	0.27%	$714.54M$714,539,328	$80,287,385 199,982,428 STRK	1,779,797,783 STRK
189	Altlayer ALT	$0.1089	2.87%	1.06%	35.04%	$243.11M$243,107,927	$139,168,543 1,277,992,799 ALT	2,232,474,196 ALT
195	Metis METIS	$38.03	1.12%	13.55%	24.10%	$226.54M$226,538,391	$17,418,165 457,973 METIS	5,956,334 METIS
230	Blast BLAST	$0.01036	1.14%	0.57%	12.57%	$209.59M$209,593,328	$45,315,989 4,372,867,635 BLAST	20,225,176,432 BLAST
252	Loopring LRC	$0.1262	0.66%	1.86%	4.75%	$172.51M$172,513,657	$12,879,634 102,043,941 LRC	1,366,806,970 LRC
281	Taiko TAIKO	$1.82	0.05%	3.53%	21.02%	$138.7M$138,703,086	$87,824,912 48,142,797 TAIKO	76,032,579 TAIKO
313	Cartesi CTSI	$0.1389	0.46%	5.22%	5.84%	$115.55M$115,550,336	$7,641,733 55,000,782 CTSI	831,664,564 CTSI
	Phala NetworkPHA	$0.12
	Omni NetworkOMNI	$8.79
	Automata NetworkATA	$0.09
	Boba NetworkBOBA	$0.22
	Hermez NetworkHEZ	$3.87
	ZKBaseZKB	$0.03
	SatoshiVMSAVM	$0.99
	Root ProtocolISME	$0.00

Top Rollups Tokens by Market Capitalization