Crypto Terms:
Letter O
What is Optimistic Rollup?
Meaning:
Optimistic Rollup -
a scaling strategy for Ethereum that incorporates off-chain computation and state storage.
Let's find out Optimistic Rollup meaning, definition in crypto, what is Optimistic Rollup, and all other detailed facts.
An optimistic rollup is a sort of layer 2 scaling solution that uses off-chain processing to reliably record layer 2 transactions. The mechanism distributes Merkle roots of the transactions that occur inside the rollup on a regular basis in order to refresh the "state" of the rollup on the key underlying chain.
Before any changes are made to the state, a network of external validators holds the responsibility to ensure that the Merkle roots are accurate. If an anomaly occurs, the validator publishes a fraud-proof during the argument period, causing the system's configuration to be rolled back to its prior valid state.
The major benefit of optimistic rollups over zero-knowledge alternatives is that they can back smart contracts in the same way that the underlying smart contract-enabled blockchain does. The rollup's native support for smart contracts implies that apps can be deployed considerably more easily, without the need for further programming.
However, the biggest drawback, on the other hand, is that it takes longer for layer 2 users to be able to deposit their cash back to the underlying blockchain when compared to zero-knowledge rollups. It's a result of the fact that an optimistic rollup must depend on validators to verify the Merkle roots for fraud before the state can be changed. Therefore, there must be enough time for validators to verify and challenge the layer 2 activity.
exchange-traded funds (ETFs)<\/strong><\/a>, amongst other things. The regulations that govern options trading are determined by the style of the option.<\/p>\n<p>Buy and sell activities are denoted as <strong>call and put in the options<\/strong> space. A call signal indicates that an option holder can buy an asset at a defined price and time. However, put and call option methods work in polar opposite ways.<\/p>\n<p>Besides, it should be noted that options are traded in the options market. Even though these financial products carry a higher amount of risk than <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-spot-trading/">spot trading<\/strong><\/a>, they have a number of benefits.<\/p>\n<p>For example, they can assist investors in properly deploying assets in order to maximize their profits. Also, because of their <strong>lower financial commitment<\/strong>, they may be less hazardous than <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-are-futures/">futures or other forms of financial products. Besides, options are very adaptable, allowing for the construction of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-synthetic-asset/">synthetics and, as a result, the expansion of investment opportunities.<\/p>\n<p>There are two basic styles to choose from:<\/p>\n<ul>\n<li><strong>American<\/strong><\/li>\n<li><strong>European<\/strong><\/li>\n<\/ul>\n<p>The distinction between the two is in how holders engage with the mechanism between the time of purchase and the point of expiration. American-styled options, for instance, allow holders to purchase or sell prior to the expiration date. European-styled options, on the other hand, solely permit holders to execute their rights on the expiration date.<\/p>","definition":"a financial contract that allows its holder to purchase or sell an asset without making a commitment.","status":"published","meta_title":"What is Option? Definition & Meaning | Crypto Wiki","meta_description":"Option meaning: Option - is a financial contract that allows its holder to purchase or sell an asset without making a commitment.","meta_keywords":null}"
:prev-section="{"id":876,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Blockchain_oracle","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2023-12-07T20:45:35.000000Z","slug":"what-is-optimistic-oracle","title":"What is Optimistic Oracle?","section":"O","keyword":"Optimistic Oracle","content":"<p>An <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-oracles/">oracle that combines real-world data with <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-decentralized-network/">decentralized systems<\/strong><\/a> and in which the data is accepted as true (if it hasn’t been disputed for a certain period) is referred to as an optimistic oracle. The optimistic oracle is <strong>different from the price-feed oracle<\/strong>, which streams prices <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-on-chain/">on-chain without recourse or error protection.<\/p>\n<p>Optimistic oracles can be employed in different ways than to price-feed oracles due to their unique design. They can offer arbitrary data and <strong>long-tail information requests<\/strong> in addition to asset prices that price-feed oracles might not be able to support.<\/p>\n<p>Since inaccurate data can be challenged, the optimistic oracle protects <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contracts<\/strong><\/a> and users from external data feed tampering. Other oracle systems are only <strong>as secure as their data stream<\/strong>, therefore this is a unique feature of optimistic oracles.<\/p>","definition":"a type of oracle in which real-world data is combined with decentralized systems, and the data is assumed to be correct if it hasn't been disputed for a specific amount of time.","status":"published","meta_title":"What is Optimistic Oracle? Definition & Meaning | Crypto Wiki","meta_description":"Optimistic Oracle meaning: Optimistic Oracle - a type of oracle in which real-world data is combined with decentralized systems, and the data is assumed to be correct if it hasn't been disputed for a specific amount of time.","meta_keywords":null}"
:model="{"id":576,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Ethereum","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-12-07T20:46:30.000000Z","slug":"what-is-optimistic-rollup","title":"What is Optimistic Rollup?","section":"O","keyword":"Optimistic Rollup","content":"<p>An optimistic rollup is a sort of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-layer-2/">layer 2<\/strong> <strong>scaling solution<\/strong><\/a> that uses off-chain processing to reliably record layer 2 transactions. The mechanism distributes <strong>Merkle roots<\/strong> of the transactions that occur inside the rollup on a regular basis in order to refresh the \"state\" of the rollup on the key underlying chain. <\/p>\n<p>Before any changes are made to the state, <strong>a network of external validators holds the responsibility to ensure that the Merkle roots are accurate<\/strong>. If an anomaly occurs, the validator publishes a fraud-proof during the argument period, causing the system's configuration to be rolled back to its prior valid state.<\/p>\n<p>The major benefit of optimistic rollups over zero-knowledge alternatives is that they can back <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contracts<\/strong><\/a> in the same way that the underlying smart contract-enabled blockchain does. The rollup's native support for smart contracts implies that apps can be deployed considerably more easily, without the need for further programming.<\/p>\n<p>However, the biggest drawback, on the other hand, is that it takes longer for layer 2 users to be able to deposit their cash back to the underlying blockchain when compared to <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-zero-knowledge-rollup/">zero-knowledge rollups<\/strong><\/a>. It's a result of the fact that an optimistic rollup must depend on validators to verify the Merkle roots for fraud before the state can be changed. Therefore, there must be enough time for validators to verify and challenge the layer 2 activity.<\/p>","definition":"a scaling strategy for Ethereum that incorporates off-chain computation and state storage.","status":"published","meta_title":"What is Optimistic Rollup? Definition & Meaning | Crypto Wiki","meta_description":"Optimistic Rollup meaning: Optimistic Rollup - Optimistic rollups utilize off-chain processing to reliably record layer 2 transactions.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
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current-chapter="O"
current-section="what-is-optimistic-rollup">
