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Why are rollups considered a game-changer for the scalability of blockchain-based cryptocurrencies?

Bilal BiluJul 27, 2023 · 2 years ago1 answers

Can you explain why rollups are considered a game-changer for improving the scalability of cryptocurrencies built on blockchain technology? How do they work and what benefits do they bring?

1 answers

  • nmeserFeb 04, 2023 · 2 years ago
    Rollups are considered a game-changer for the scalability of blockchain-based cryptocurrencies because they address the scalability limitations of traditional blockchain networks. By bundling multiple transactions together and submitting them as a single transaction to the main blockchain, rollups significantly reduce the amount of data that needs to be processed and stored on the blockchain. This allows for faster transaction confirmation times and increased transaction throughput. Rollups also provide a more cost-effective solution, as the fees associated with processing transactions on rollups are typically lower than those on the main blockchain. Overall, rollups offer a scalable and efficient solution for blockchain-based cryptocurrencies, paving the way for widespread adoption and improved user experience.

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