How Arbitrum Rollup works and security

Author: floating_monkey Source: medium Translation: Shan Oppa, Golden Finance

Ethereum, as a revolutionary blockchain platform, faces challenges related to scalability and high transaction fees. Now, let's introduce Arbitrum Rollup, a groundbreaking solution that not only solves these problems, but also enhances the security of the Ethereum network. In this article, we'll dive into how Arbitrum Rollup works and how it enables improvements in scalability and security.

Understanding Challenges: Ethereum's Scalability Issues

The Ethereum network has been praised for its decentralized nature and the execution of smart contracts, but it faces a key challenge: scalability. Ethereum's blockchain is designed to process a finite number of transactions per second (TPS), typically between 20 and 40 TPS. This restriction stems from Ethereum's fundamental design philosophy that each node (the computer running the Ethereum software) must reach a consensus on the state of the network by processing every transaction in Ethereum's history.

This commitment to decentralization and security has resulted in Ethereum's limited transaction throughput, insufficient to handle the growing demand for decentralized applications and financial activities. High transaction fees and network congestion are a consequence of this scalability limitation.

Role of Arbitrum Rollup

Arbitrum Rollup represents a significant solution to Ethereum's scalability problems. At its core, Arbitrum Rollup operates as an Ethereum Layer 2 (L2) scaling solution that optimizes transaction processing and significantly reduces fees while maintaining Ethereum's security and decentralization.

Optimistic execution and rollup process**

Arbitrum Rollup's main innovation lies in its "optimistic execution" approach. Here's how it works:

Step 1: Layer 2 Operations - Transactions are made on the Arbitrum Rollup chain, which operates as the second layer of Ethereum.

Step 2: Optimistic Assumption - Unlike requiring Ethereum nodes to process every Arbitrum transaction immediately, Ethereum takes the premise of "acting in good faith until proven guilty." It assumes that all activities on Arbitrum follow the correct rules, reducing the burden on Ethereum's first layer.

Step 3: Arbitration Mechanism - If a dispute arises (for example, a user claims fraud), it can be resolved through the first layer of Ethereum. Ethereum acts as an arbiter, adjudicating disputes and determining whether claims are valid.

Improving security through Ethereum's oversight

The key feature of security in Arbitrum Rollup is the possibility of arbitrating fraud at the first layer of Ethereum. Here's how it works:

• Data, such as user transactions, is posted directly on Ethereum, maintaining full transparency.

• In the event of a dispute, Ethereum's first layer performs arbitration procedures. This ensures that all participants in Arbitrum Rollup are traceable and transparent.

Validator role and trustless security

The operation of the Arbitrum Rollup chain depends on validators, who carry out various activities, including making claims about the chain state and arguing over the claims of others. While no regular user is required to run the validator, the key feature of the system is that it is trustless. Anyone can become a validator as long as they run open-source validator software and stake Ether if necessary.

Even with only one honest validator, the Arbitrum Rollup chain is still safe. This trustless nature means that users do not need to rely on designated authority to secure their assets.

Conclusion

Arbitrum Rollup is a groundbreaking technology that solves Ethereum's scalability issues while maintaining the security and transparency of the network. Its optimistic execution approach significantly reduces fees and improves the Ethereum user experience. With Arbitrum Rollup, Ethereum is one step closer to being able to accommodate a wider variety of applications and users, while maintaining the core principles of decentralization and security. This is an exciting development in the Ethereum ecosystem that continues to innovate.