State of Rollup Technological Development

Rollups have emerged as the predominant solution for scaling Ethereum in recent years. The optimism and enthusiasm surrounding rollups were met with a sustained level of venture funding from 2021 through most of 2022. The notable decrease in funding observed in the subsequent period could be attributed to the challenges posed by a liquidity crunch under a high-interest-rate environment. This shift in funding dynamics highlights the impact of external factors on financing the development of blockchain scalability solutions.

This research piece summarizes the current technological development of optimistic rollups (ORs), zero-knowledge rollups (ZKRs), and other rollup variants.