Rollup Finance

Although reliable third-party intermediaries generally operate well, they are inherently unable to eliminate the weakness of the “credit-based model.” From the Mt.Gox incident to the ftx.com crash, even the world’s top exchanges are unable to fulfill their commitment to acting in good faith. The collapse of centralized exchanges has indirectly become a catalyst for the development of decentralized exchanges. Since the DeFi summer, various types of decentralized exchanges have emerged, and the demand for on-chain transactions continues to grow. Especially during the ftx.com crash, Uniswap’s trading volume surged, and the number of daily active wallets on its platform reached a record-breaking 55,550.

We believe that the demand for on-chain transactions is real and necessary, and will experience explosive growth with the development of Layer 2. The most common Layer 2 solutions are state channels, sidechains, optimistic Rollups, and zero knowledge roll-ups(ZK-rollups). ZK-Rollups is seen as one of the most promising solutions to the Ethereum scalability problem, providing faster and cheaper transactions while maintaining a high level of security and decentralization.