ETH’s Best Kept Secret: Why Optimistic Rollups Refuse to Die

by

Cartesi Founder: Optimistic Rollups Remain Crucial to <a href="https://jpyxx.com/eth-usd/">Ethereum</a> Scaling, Despite Fading Hype

Optimistic Rollups continue to be a vital scaling method for first-layer blockchains, even with the current excitement surrounding emerging technologies. Key figures like Felipe Argento, co-founder of Cartesi, underscore the enduring importance of optimistic rollups within the layer-two (L2) sector.

Optimistic Rollups Fundamental to Multi-Layer Blockchain Infrastructure

In recent times, Optimistic Rollups, initially celebrated as a groundbreaking scaling solution for layer one (L1) blockchains, have experienced a decrease in attention. Nevertheless, industry experts emphasize that their relevance persists, with evidence pointing towards their continued leadership within the layer two (L2) ecosystem.

In simpler terms, Felipe Argento, one of the founders at Cartesi, highlights the ongoing significance of Optimistic Rollups in the context of platforms designed for application-specific solutions. He points out that most value locked on layer 2 solutions is still protected by Optimistic Rollups, which underlines their continued importance within the multi-layered blockchain structure.

Argento’s findings correspond with reports indicating that Optimistic Rollups (ORs) still hold a significant share of the L2 market. Data derived from various TVL analysis sources in L2 solutions supports this notion, suggesting that while other L2 solutions are arising, ORs continue to dominate as a leader in the sector.

As an analyst, I find myself echoing the sentiments of the Cartesi co-founder when it comes to blockchain development. The allure of novelty often outshines the gritty reality of coding robust, production-grade solutions in our sector. It’s a tough truth that creating hype is much simpler than writing solid, industrial-strength code, which remains a persistent challenge.

This state of affairs means that the glamorous appeal of newer, less mature technologies can sometimes overshadow the consistent advancements made by established solutions such as ORs.

However, Argento, who also serves as the Cartesi Foundation Advisor, insists Optimistic Rollups (ORs) remain, and will continue to be, a fundamental tool in scaling Ethereum. His assertions are supported by a Chainalysis article comparing ORs and zero-knowledge (ZK) rollups. According to data in the Sept. 10, 2024, article, the total value locked (TVL) bridged between Optimistic Rollups and Ethereum was approximately $186.4 billion, compared to $20.8 billion for ZK-rollups.

Similarly, data from Dune Analytics shows that while the TVL of Optimistic Rollups dropped from an August 2024 high of more than $12 billion to approximately $6.55 billion by Feb. 10, 2024, it was still 15 times greater than that of ZK-rollups. This appears consistent with Argento’s assertion that ORs remain dominant despite losing “mindshare to solutions that are essentially pipe dreams or distant promises.”

Full Onchain AI Implementation Remains Challenging

Argento contends that Cartesi’s technology is unique in its ability to let Linux operate on a blockchain, thereby allowing developers to create blockchain applications using familiar coding tools that are compatible with Ethereum. He explained this to TopMob, stating that the technology forms the basis of two products: Cartesi rollups, which cater to stateful applications, and Cartesi coprocessors, which manage stateless computations. These coprocessors transfer complex tasks from Solidity smart contracts, thereby improving efficiency and security, and keeping applications primarily on the first layer (L1).

When it comes to combining AI and crypto on the blockchain, we should proceed with care as there may be tough technical issues that could hinder their progress.

Implementing AI entirely on the blockchain is technically demanding, as most projects face two significant hurdles when moving from theoretical discussions to practical applications: ensuring compatibility between existing systems and achieving scalability for large-scale use.

Argento’s viewpoint mirrors his previous focus on prioritizing solid, operational code over temporary storylines. He contends that numerous AI and cryptocurrency projects face challenges in connecting abstract theories with real-world implementations.

Regarding potential threats from L2 networks to original networks, the co-founder of Cartesi stated that developing blockchain software, especially for L2 applications, necessitates utmost care and thorough testing. Such precaution is wise considering the significant duty involved in handling financial resources.

Additionally, he emphasizes the significance of reducing new trust assumptions, focusing instead on strategies that solely depend on the essential necessity of at least one truthful participant. Moreover, he contends that utilizing reliable, time-tested Web2 software can strengthen security by sidestepping the risks inherent in recreating established tools.

Argento posits that, through thoughtful development and emphasizing the reduction of extra trust needs, Level 2 (L2) solutions do not necessarily introduce security vulnerabilities. On the contrary, they could enhance total security by incorporating strong, pre-existing software.

Read More

2025-03-31 15:03