Tezos: Scaling with Enshrined Rollups

Tezos first introduced enshrined rollups in March 2023, when it brought transaction rollups to mainnet. Transaction rollups handle account-to-account transfers of assets but do not support smart contracts. The recent Nairobi upgrade introduced smart contract rollups, which are designed to support environments like WebAssembly or EVM, the Ethereum Virtual Machine.

Additionally, the Nairobi upgrade boasts an 8x in transactions per second (TPS), together with reduced latency in their consensus mechanism. More importantly, this upgrade enables Tezos’ Smart Rollups to develop in sync with the Layer 1 (L1) protocol. This allows for better integration of Tezos’ enshrined rollups with the Layer 1 protocol, allowing said rollups to take full advantage of future upgrades on L1.