For Customers Log in
Contact Us

Optimistic Rollup Meaning

A Layer 2 scaling solution for Ethereum. It bundles (rolls up) hundreds of off-chain transactions into a single batch and posts the data to the main Ethereum chain.

It is called "Optimistic" because it assumes transactions are valid by default and does not perform any computation on-chain unless challenged. This assumption drastically reduces fees and increases speed.

If someone believes a transaction in the bundle is fraudulent, they can issue a "Fraud Proof" during a specific window (usually 7 days). If the fraud is proven, the transaction is reverted and the malicious actor is slashed.

The trade-off is the withdrawal time. Because of the challenge window, moving funds from an Optimistic Rollup back to Ethereum Layer 1 can take a week.

Examples of Optimistic Rollups include Optimism and Arbitrum.

← Back to Glossary

Explore our services
Providing liquidity in the cryptocurrency market?
Authorize on our platform and do it smarter with FM Pulse.
pic

FM Marketplace

A reliable and high-performance crypto liquidity marketplace for institutions and businesses.

Learn more
pic

FM White Label

Launch your fully branded B2B crypto trading platform in under one week.

Learn more
pic

FM Liquidity Match

Crypto OTC-as-a-Service infrastructure for enhanced monetization and trade control.

Learn more

Scale your business, leave the hard work of your trading needs to us

Reduce your integration costs and operational risk across multiple access points with our platform

Get started