Rollups popular in the market, which are Zero-Knowledge Rollups or

ZK-Rollups and Optimistic Rollups.

In ZK-Rollups, the actual transaction happens offchain whereas only

the proof of transaction is sent to the mainchain. For leveraging this

solution, ZK-Rollups use a feature called Zero-Knowledge-Proof.

Optimistic Rollups are similar to ZK-Rollups, however, as the name

suggests, the L2 sends all the transactions to L1 without verification,

i.e., with a practice of optimism. The dispute resolution happens on

L1 later and the transactions are reverted in case of the detection of

fraud. Of course, ZK-Rollups are faster than Optimistic Rollups as

the validation occurs along with the updates of the transaction hand

in hand.

Please note that the Rollups are far more scalable than the plasma

L2 technologies. While in plasma, the proof is sent to the

mainchain on per transaction basis, in case of the Rollups, many

transactions are combined into one transaction offline and the

collective proof is sent to the mainchain.

The Rollups model is fast, scalable, and would need far less as the

transaction fees. Interoperable Blockchain Polygon or Matic uses

this approach for scaling.

L2 technologies are still a new concept and needs far more

research. They may sound too good to be true. However, we must

note that with the L2 technologies, we are again moving towards

some level of centralization.

Please also note that the scalability and performance of the

Blockchain network is also associated with the consensus process

and L2 solutions. As the decision making process would be shifted

from PoW to the others and the transaction finality is achieved faster

with the L2 solutions, we would see significant improvement in this

space.

In my opinion, after the rise of private permissioned DLTs in the

last 4-5 years, 2022 will be the breakout year for public