Optimistic and ZK RollupsZK

Rollups process transactions off the main chain and post them back in batches. Optimistic rollups assume batches are valid unless someone submits a fraud proof during a challenge period; ZK (zero-knowledge) rollups attach a cryptographic validity proof to every batch. A sequencer orders the transactions in both.

Rollups run transactions off the main chain and post the results back to it. Optimistic rollups assume batches are valid unless someone challenges them. ZK rollups attach a cryptographic proof. For traders the big differences are withdrawal time, fees and trust assumptions.

Category
Cryptocurrency and Blockchain
Reading time
4 min
Also called
Layer 2 rollups, Optimistic rollup, Zero-knowledge rollup
Updated

Rollups in plain words

Rollups, like state channels and commit-chains, move transaction processing off the main chain while users keep control of their tokens.1

Optimistic rollups assume batches are valid and don't post proofs on-chain.2

ZK rollups post a validity proof — cryptographic evidence that the new state really comes from executing the batch.3

How a rollup batch reaches Ethereum

  1. Users transact on L2

    Trades run on the rollup, cheaply and fast.

  2. Batch the transactions

    A sequencer bundles many transactions together.

  3. Post to L1

    The batch data and new state go to Ethereum.

  4. Optimistic: wait for challenges

    Optimistic rollups allow a challenge period in which anyone can dispute a result.2

  5. ZK: verify the proof

    ZK rollups process withdrawals once the contract has checked the validity proof.3

  6. Punish bad batches

    If a fraud challenge succeeds, the sequencer that included the bad transaction is penalised.2

Worked examples

Example 1 — Fee sharing in a batch

$0.05 each

A hypothetical L1 posting costs $60 and the batch holds 1,200 transactions.

Example 1 — Fee sharing in a batch — calculation
L1 cost per transaction$60 ÷ 1,200 = $0.05

Offloading processing away from the root blockchain lets many users share one L1 cost.1

Example 2 — Fast withdrawal fee

9.99 ETH today

A hypothetical trader wants 10 ETH off an optimistic rollup now. A liquidity provider charges 0.1%.

Example 2 — Fast withdrawal fee — calculation
Fee10 × 0.1% = 0.01 ETH
Received now10 − 0.01 = 9.99 ETH

A liquidity provider takes over the pending withdrawal and pays the user on layer 1 straight away, for a fee.2

Example 3 — Waiting out the challenge

About 7 days

A hypothetical trader withdraws natively from an optimistic rollup on day 0.

Example 3 — Waiting out the challenge — calculation
Challenge period7 days
Funds usable on L1Day 7

Without such help, the user has to sit out the roughly one-week challenge period before funds reach Ethereum.2

Optimistic vs ZK rollups

AspectOptimistic rollupZK rollup
How validity is shownAssumed, open to challengeValidity proof each batch
Native withdrawal timeAbout one weekAs soon as the proof is verified
Main costPosting data to L1Generating proofs
Main trust pointAt least one honest challengerCorrect proof system and setup

Where rollups matter for traders

Advantages and disadvantages

Advantages

  • Much lower fees than L1.
  • Inherit Ethereum's security for settlement.
  • ZK rollups allow fast exits.
  • Optimistic rollups are simpler to build on.

Disadvantages

  • Optimistic exits take about a week.
  • Sequencers can be centralized.
  • ZK proofs are costly and complex.
  • Bridging adds smart-contract risk.

Going deeper

Read as far as you need. Each level builds on the one before it.

Many trades, one posting

Beginner

Moving the work off the main chain while users keep custody is what makes rollups cheaper.1

The optimistic bet

Intermediate

Optimistic designs accept state updates by default and only check them if someone objects.1

Proofs and exits

Advanced

ZK rollups have no exit delay, because withdrawals go through as soon as the proof is verified.3

Common mistakes

  1. Planning on instant optimistic exits

    Native withdrawals wait about a week.

  2. Ignoring fast-exit fees

    Liquidity providers charge for speed.

  3. Treating all L2s as equal

    Proof systems and sequencers differ.

  4. Forgetting bridge risk

    Bridges have been hacked before.

Check your understanding

Test yourself before moving on. Each answer comes with an explanation.

Q1Which rollup type needs a challenge period before native withdrawals?
Q2A $40 L1 posting covers 800 transactions. What is the cost each?

Key points to remember

  1. Rollups run trades off L1 and post results back.
  2. Optimistic rollups assume validity unless challenged.
  3. ZK rollups post a validity proof.
  4. Optimistic native exits take about a week.
  5. Fast exits cost a fee to a liquidity provider.

Frequently asked questions

Are rollups as safe as Ethereum?

They settle to Ethereum, but sequencers, bridges and upgrades add their own risks.

Why do ZK rollups not need a week?

Each batch already carries a proof that Ethereum checks.

Can I avoid the 7-day wait?

Yes, by paying a liquidity provider or bridge for a fast exit.

Further learning

Sources

This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.

  1. NIST. NISTIR 8301: Blockchain Networks: Token Design and Management Overview (opens in a new tab) Checked .
  2. ethereum.org. Optimistic rollups (opens in a new tab) Checked .
  3. ethereum.org. Zero-knowledge rollups (opens in a new tab) Checked .

Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. We are not affiliated with any publisher linked above. Last reviewed . Report an error or request a source credit.