Based Rollup

What Is a Based Rollup?

Unlike other scaling solutions, based rollups do not have their own centralized sequencers. Rather through the use of Ethereum’s validators, the based rollup inherits the full liveness of Ethereum along with some of its security guarantees. 

Examples of based rollups include Taiko, Surge, Rogue, Spire, and Puffer.

Benefits of Based Rollups 

The most foundational benefits of a based rollup are decentralization and liveness. 

Other rollup designs have made compromises to security and trust minimization in order to provide better user experiences and faster transaction times. While this is not inherently negative, it does mean that rollups not using Ethereum’s sequencers are at more risk of censorship resistance and require users to trust them to some extent. 

Based rollups do not require these trade-offs. By not using their own controlled sequencers, they ensure that no single person, computer, or company can control transaction ordering or inclusion. Rather, by using Ethereum as the settlement layer, they are equally censorship-resistant.

Since the rollup isn’t ordering transactions it also does not extract all MEV like centralized rollups do. Instead, the MEV flows through to the Ethereum validators, benefitting the entire network and aligning incentives between the scaling solution and Ethereum.

Drawbacks of Based Rollups

Based rollups are not without their drawbacks. Specifically when it comes to transaction times and costs.

Alongside this, posting all the data directly to Ethereum can be costly, resulting in higher transaction costs. This is a serious barrier to entry and something that centralized rollups and alternate data availability layers currently address more efficiently. 

Development of Based Rollups In the Future

Based rollups are still in the early stages of development. As a result, many of the current challenges are being resolved as the development of these rollups matures. 

When it comes to transaction times, based preconfirmations are expected to address the limitations currently faced. By having transactions confirmed before they are included in an Ethereum block, users will get a fast confirmation that their transactions will be included, from Ethereum validators.

As based rollups align with Ethereum, upgrades to the native network also impact and further their development. 

Based rollups contribute to the long-term vision of Ethereum’s rollup-centric roadmap by bringing scalability back in line with the native chain's values. By approaching Ethereum as the best credibly neutral settlement layer, based rollups ensure they are a true extension of Ethereum.