Ethereum Co-Founder Vitalik Buterin Proposes A Solution For A Particular Type Of Cross-Rollup Scaling
Ethereum Co-Founder Vitalik Buterin Proposes A Solution For A Particular Type Of Cross-Rollup Scaling
March 4, 2021
Ethereum Co-Founder Vitalik Buterin Proposes A Solution For A Particular Type Of Cross-Rollup Scaling
Ethereum Co-Founder Vitalik Buterin Proposes A Solution For A Particular Type Of Cross-Rollup Scaling
March 4, 2021

Vitalik Buterin, the co-founder of Ethereum, has proposed a solution for a particular type of cross-rollup scaling.

It has been reported that the proposal outlines how two protocols using rollups can communicate with each other while maintaining interconnectivity and composability.

However, rollups are layer-two solutions that are essentially smart contract networks that process and store transaction data off the main chain. There are a number of different rollup types, with each using unique smart contracts such as optimistic and zero-knowledge.

The report said that while a number of DeFi projects have deployed layer-two rollups, such as Loopring and Synthetix, the particulars of the various rollups mean projects are unable to communicate to one another directly on layer-two. Buterin’s proposal assumes that one rollup can process simple transactions whereas the other has full smart contract support. 

There are already proposals for transfers between two smart contracts enabled protocols using rollups. To explain how the proposal works, Buterin provides the example of a hypothetical exchange intermediary he called ‘Ivan,’ where Ivan has an account ‘IVAN_A’ on rollup A that he fully controls, and also has some funds deposited in a smart contract ‘IVAN_B’ on rollup B.

ALSO READ :  Ziglu Launches Its P2P Payments Service For Both Fiat And Cryptocurrency

Likewise, the smart contract would be programmed to accept “memos” that include additional data from anyone sending to it in order to secure any future transactions.

The transactions create a connecting layer that keeps deposits in all these isolated contracts, allowing rollup A to send to rollup B via this layer.

Buterin suggested:

“Alice sends a transaction to IVAN_A with N coins and a memo ALICE_B. Ivan sends a transaction sending TRADE_VALUE * (1 – fee) coins through IVAN_B to ALICE_B.”

He added that the worst-case behavior would be if Ivan does not send coins to ALICE_B as he is expected to. Addressing the “worst-case” scenario that could arise as a result of using the proposed situation, Buterin emphasized that Alice would still be able to wait until the transaction on rollup A confirms, find some alternate route to getting coins on rollup B to pay fees, and then simply claim the funds herself.

Thus, Alon Muroch said:

“That’s very interesting, similar to how banks clear transactions between themselves. Batching assets into separate “accounts” could have limitations, a solution could be just big pools on either ends and fees split pro-rata.”

Source: Cointelegraph | Image: Coins Telegram | Chain Bulletin


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Report: Ethereum Can Go To $10,000 In 2021

Report: Ethereum Can Go To $10,000 In 2021

A report by professional trader Scott Melker said that Ethereum can go to $10,000 in 2021 and can overshadow Bitcoin. It has been reported that Melker sees this period of Bitcoin’s price consolidation as particularly...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space. She loves writing about blockchain and other blockchain-related articles.