Rapid Insights: Based Rollups

Rollups bundle transactions submitted on layer 2 (L2) and submit them to layer 1 (L1) to prove or attest to their validity. Generally speaking, L2 scaling solutions like rollups improve performance by centralizing transaction execution while inheriting security from L1. Centralizing transaction ordering enables fast settlement on L2, along with other beneficial features such as signed inclusion guarantees from sequencers. 

Ever since the proliferation of on-chain finance, transaction ordering has become a progressively more important topic of research. On the Ethereum L1, validators produce blocks and choose which transactions to include in the next block and are incentivized to pick the transactions in the mempool that pay the highest priority fee.