# Optimistic Rollups

## What is an Optimistic Rollup?

An optimistic rollup is scaling solution that allows for off-chain transactions while still inheriting the security of the underlying blockchain.

Optimistic rollups work by moving computation and state storage off-chain. This means that transactions are processed and stored off of the underlying blockchain, which frees it up to handle more transactions.

When a transaction is processed off-chain, it is bundled together with other transactions into a batch. This batch is then submitted to the underlying blockchain, along with a fraud proof. The fraud proof is a mathematical proof that the batch of transactions was processed correctly.

If anyone believes that a batch of transactions was processed incorrectly, they can challenge the fraud proof. If the challenge is successful, the batch of transactions is rolled back and the correct state is restored.

Optimistic rollups offer a number of advantages over other blockchain scaling solutions. They are relatively simple to implement, they are secure, and they are compatible with the Ethereum ecosystem.

Here are some advantages of the Optimistic Rollup scaling solution:

* **Increased scalability:** Optimistic rollups can process thousands of transactions per second, which is much faster than Ethereum mainnet.
* **Reduced fees:** Optimistic rollups can also reduce transaction fees, making it more affordable to use Ethereum.
* **Security: T**he fraud proof mechanism ensures that transactions are processed correctly.
* **Compatibility:** Optimistic rollups are often EVM-compatible, making it compatible with the Ethereum ecosystem. This means that you can use your existing Ethereum wallets and dApps with optimistic rollups.

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