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	Arbitrum ARB	$1.18	3.82%	3.70%	26.59%	$4.85B$4,851,103,811	$1,038,635,757 877,256,926 ARB	4,097,359,817 ARB
49	Immutable IMX	$2.07	1.14%	2.96%	4.70%	$3.51B$3,513,404,954	$180,819,231 87,222,016 IMX	1,694,765,880 IMX
77	Starknet STRK	$0.7632	1.57%	4.25%	21.60%	$1.72B$1,724,227,641	$324,982,578 425,829,995 STRK	2,259,283,720 STRK
135	Nervos Network CKB	$0.01674	0.71%	3.24%	9.66%	$761.67M$761,671,922	$145,059,130 8,664,698,681 CKB	45,496,327,733 CKB
195	Altlayer ALT	$0.193	1.25%	1.86%	37.29%	$441.22M$441,221,961	$128,761,584 667,283,968 ALT	2,286,554,196 ALT
197	Loopring LRC	$0.3182	1.99%	3.40%	33.19%	$434.88M$434,884,512	$97,680,736 307,002,680 LRC	1,366,806,970 LRC
231	Metis METIS	$66.26	2.90%	0.58%	13.42%	$407.6M$407,602,618	$34,977,183 527,858 METIS	6,151,334 METIS
266	Blast BLAST	$0.01418	2.44%	12.40%	15.96%	$325.65M$325,645,173	$152,340,767 10,746,384,782 BLAST	22,971,581,421 BLAST
339	Cartesi CTSI	$0.2392	1.48%	0.55%	19.79%	$200.96M$200,956,966	$30,541,170 127,677,508 CTSI	840,101,564 CTSI
343	Taiko TAIKO	$2.37	0.63%	9.80%	22.77%	$193.61M$193,605,487	$138,941,673 58,671,067 TAIKO	81,754,021 TAIKO
	Phala NetworkPHA	$0.19
	Omni NetworkOMNI	$13.76
	Automata NetworkATA	$0.14
	Boba NetworkBOBA	$0.32
	Hermez NetworkHEZ	$4.17
	ZKBaseZKB	$0.02
	KromaKRO	$0.05
	SatoshiVMSAVM	$0.98
	Root ProtocolISME	$0.00

Top Rollups Tokens by Market Capitalization