One of the key hurdles holding back Web3 future development is scalability. If you’re unfamiliar with blockchain technology, you may not know that blockchains have a scalability problem, but they do. In simple terms, blockchains can only process a limited number of transactions per second, leading to slow transaction times and high fees during periods of high demand. Dymension aims to solve these issues.
Rollups work by aggregating multiple transactions into one transaction, which is then sent to the blockchain, helping alleviate congestion and scalability issues. Furthermore, they improve the efficiency of decentralized applications and enable developers to build more complex dApps without worrying about scalability issues.
Optimistic Rollups vs. ZK-Rollups
Zero-knowledge rollups (ZK-rollups) and optimistic rollups are layer-two scaling solutions for blockchains, but they differ in handling off-chain transactions.
ZK-rollups bundle transactions into batches that are processed off-chain, and only a minimal summary of the changes gets posted to the blockchain. This summary data includes cryptographic proofs that ensure the changes’ correctness without containing individual transaction data. This approach provides high scalability and privacy, but implementation can be more complex.
On the other hand, optimistic rollups use a different approach, also involving executing transactions off-chain but instead posting all transaction data to the blockchain. The data is subject to challenge periods where anyone can raise concerns about the transaction’s validity.
This approach provides high scalability and low latency. Yet, it will be more expensive regarding transaction fees and require longer waiting periods for withdrawals.
Overall, ZK-rollups are best suited for high-security and privacy-sensitive use cases, while optimistic rollups are better for applications where low latency and fast withdrawals are essential.
Rollups are likely to become increasingly popular as blockchain technology matures and businesses seek to harness its potential.
Funding and Launch Progress
Recently, Dymension announced they are bringing rollups (they call their rollups, RollApps) to the Cosmos ecosystem. The launch will allow faster and cheaper transactions on the Cosmos network, making it more accessible and usable for everyday users.
After raising $6.7 million to fund its project and a successful testnet launch, the mainnet is getting closer.
Dymension uses a scalability approach that involves creating a modular blockchain network that takes advantage of layer-1 blockchain security and layer-2 rollup scalability.
Modular blockchains are characterized by component-based development, allowing different modules to be added, modified, or replaced without affecting the entire system. This approach offers flexibility, customization, and the ability to add new features and capabilities over time.
Modular blockchains also enable integration with different blockchain systems and protocols, resulting in high interoperability. Dymension’s RollApps are EVM-compatible, enabling smart contracts written in Ethereum’s (ETH-USD) Solidity coding language to run in the Cosmos environment.
Dymension has created an RDK (RollApp Development Kit) that makes it easy for developers to connect their rollups using a standard format called Cosmos Inter Blockchain Communication (IBC) protocol.
The rollups, which operate as client-facing blockchains, work like traditional web applications. They batch transactions on layer-2 blockchains and push them to backend layer-1 chains for enhanced security and scaling. According to Yishay Harel, the CEO of Dymension, the company aims to build a network of blockchains with technology that can bring about the biggest paradigm shift since the creation of Ethereum.
The cryptocurrency exchange Coinbase (NASDAQ:COIN) recently launched its own layer-2 network to attract millions of people in the coming years. These kinds of developments further highlight the importance of solving scalability problems.
Dymension’s successful launch of its testnet for rollups marked a significant milestone for the blockchain community. The introduction of rollups as a layer-2 scaling solution for blockchains offers an efficient and cost-effective solution to the scalability problem that has plagued the industry.
Dymension’s RollApps, which are EVM-compatible and work with Cosmos’ IBC protocol, provide faster and cheaper transactions for users of the Cosmos ecosystem.
With its modular blockchain approach and RDK, Dymension makes it easier for developers to deploy high-performing rollups. Its technology promises to bring about a paradigm shift in the blockchain space.
