Amidst curiosity about how the ‘rollup’ features are going to address the ETH’s scaling problem, let’s move into a bit profound but fruitful analysis to understand the overall system.

Data and computation are the two backbones and the critical cost factors of Ethereum transactions. The newly designed rollup keys will unlock the computation by displaying it off-chain and further projecting it through the network in another form called Merkle root.

The latest two constituents of the rollup are

Optimistic Rollup and O2 (optimised optimistic) Rollup

They both are so designed to ensure transparency by the use of fraud proofs. The main point, which makes the difference, is the way data is stored in both. In Optimistic Rollup, aggregate data without any straining is as it is published to the network as call data, unlike O2 Rollup which publishes a data off-chain. The same enables O2 Rollup to earn unbounded scalability as the quantity of transaction posted in the Merkle Root is very small and the second great benefit is that it can serve much more intricate problems and acts as an excellent substitute to the expensive cell data.

Viewers can study and analyse the data in the data in the Merkle root and check it if it is accurate. The data keeps the record of every transaction processed and the withdrawals, interestingly it cannot be manipulated, so no safety issues to address.

Some other differences are

In the optimistic Rollup, there is a gad cost associated with publishing, unlike in O2 rollup where there is no cost unless a validator challenges any error or if there is any data availability issue. O2 rollup offers unbounded scalability whereas the Optimistic Rollup entertains scale transfers to 250 TPS and maximum theoretical throughput of 2000 TPS. The O2 rollup is useful for any application possessing high TPS requirements or data complexity, but Optimistic rollup is confined to simple requests like IDEX trade only.

Some other features that add icing to the cake are that in O2 Rollup the service provider can ensure a safe payment and immediate transfers and no risk of failure in the settlement. It enables the provider to support non-custodial payments, which can coincide with the throughput of visa. It also has video games assets and no gas costs.