What are Based Rollups?

What is a Based Rollup?

Based Rollups are a new class of Layer 2 scaling solutions that leverage Layer 1 (L1) blockchains, like Ethereum, for transaction sequencing through a method called Based Sequencing. This integration eliminates the need for separate sequencers or complex consensus mechanisms, simplifying operations and enhancing economic feasibility while inheriting the robust security, decentralization, and uptime of their L1 counterparts.

By avoiding the gas overhead and token-based operations of traditional rollups, Based Rollups streamline scalability and ensure a secure, decentralized transaction processing framework. This alignment with L1 ecosystems through Based Sequencing offers a more efficient, cost-effective solution, maintaining Ethereum's standards and advancing blockchain scaling.

‍

How Does Based Sequencing Work?

Based Sequencing integrates rollup transactions within Ethereum's Layer 1 (L1) blocks, using existing L1 validators for transaction ordering. This method ensures efficiency and security by aligning rollup operations with Ethereum's established framework.

Key aspects include:

1. Collaboration: L1 proposers work with searchers and builders to integrate rollup transactions.
2. Permissionless Inclusion: Any rollup block can be included in the next L1 block without special permissions, promoting openness.
3. No External Consensus: This method relies solely on Ethereum's existing validation, eliminating the need for external Proof of Stake mechanisms.
4. Direct L1 Alignment: Rollup transaction sequences follow Ethereum's block order, ensuring tight integration with its security and uptime guarantees.
5. Economic and Operational Efficiency: Using L1 for sequencing removes the gas overhead from signature verifications, reducing complexity and costs.

This structure simplifies transaction sequencing and enhances the security and decentralization of rollups by leveraging Ethereum's robust infrastructure.

‍

What are Based Preconfirmations?

Based Preconfirmations (preconfs) are an enhancement for based rollups, providing users with rapid transaction confirmations, typically within 100ms. This feature improves the user experience by allowing transactions to be preconfirmed before full on-chain inclusion, leveraging the efficiencies of based rollups.

Preconfs require proposer slashing and proposer forced inclusions as key infrastructures. Proposers opt into additional slashing conditions and can forcefully include transactions on-chain, ensuring that preconf promises are honored. Preconfers, prioritized by slot positions, issue signed preconf promises to users. Transactions with these promises can be included immediately, and any unfulfilled promises lead to slashable faults, thus ensuring the reliability and integrity of the based rollup system.

‍

‍

Based Rollups vs Other Rollups

Based Rollups distinguish themselves from traditional rollups, such as Arbitrum and Optimism, primarily through their sequencing mechanism and its implications for decentralization, security, and economic alignment. Here's a comparative analysis:

• Based Rollups: Utilize Ethereum's Layer 1 for transaction sequencing, inheriting its robust decentralization and security, simplifying operations by eliminating the need for separate sequencers, and aligning economically with Ethereum to bolster its security while foregoing potential MEV revenue.
• Traditional Rollups: Rely on proprietary sequencers, introducing risks of centralization, potential downtime, and censorship concerns, alongside complex consensus mechanisms and escape hatches that complicate operations and can degrade user experience while enabling sequencer-extracted MEV.

In essence, Based Rollups' reliance on Ethereum's L1 for sequencing presents a streamlined, economically aligned, and decentralized alternative to traditional rollups, which navigate challenges related to sequencer centralization and its resultant externalities.

‍

Examples of Based Rollups

Taiko's Based Booster Rollup (BBR) exemplifies the technical evolution in Ethereum scaling, marrying the concept of based rollups with booster mechanisms. BBR utilizes Ethereum's Layer 1 validators for sequencing, inheriting the base layer's security and decentralization attributes. 

This model not only simplifies transaction processing by avoiding complex consensus algorithms but also strategically mitigates the fragmentation issue by enabling atomic cross-rollup transactions. 

Essentially, BBR amplifies Ethereum's scalability by allowing L1 to directly propose blocks for an interconnected network of rollups, streamlining the scaling process without compromising on decentralization.

‍

Bottom Line

In summary, Based Rollups offer a streamlined, efficient, and secure approach to scaling Ethereum by leveraging Layer 1 for transaction sequencing. This method simplifies operations, reduces costs, and maintains the security and decentralization inherent to Ethereum. Enhancements like Based Pre Confirmations further improve user experience by providing rapid transaction confirmations.

Compared to traditional rollups, Based Rollups present a more decentralized and economically aligned solution, marking significant progress in blockchain scalability and efficiency.