What it is
A rollup is a type of Layer 2 scaling solution for Ethereum designed to increase transaction throughput and reduce fees. Rollups execute transactions off the main Ethereum blockchain, bundle hundreds or thousands of these transactions into a single batch, and then post a compressed summary of the batch to the Ethereum mainnet. This summary includes cryptographic proofs that verify the correctness of the off-chain computations, ensuring transactions are valid.
Rollups are at the forefront of Ethereum's scalability efforts, allowing for significantly higher transaction volumes compared to the mainnet. News often covers the launch of new rollup networks, their adoption rates, and technological advancements like blob transactions that further reduce their costs. Retail investors interact with rollups to access DeFi protocols and NFTs with lower gas fees. Understanding rollups is key to following Ethereum's development and finding cheaper ways to transact.
Why it matters
Rollups make Ethereum transactions cheaper and faster, essential for affordable participation in DeFi and NFTs.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice