The Dilemma of Choosing Between Bitcoin Blockchain and External Systems for Rollup Data Availability
- Rollups are gaining attention as a scaling solution for Bitcoin, surpassing the Lightning Network.
- Rollups aim to be an off-chain layer two that overcomes liquidity limitations.
- They function by holding user balances in a single account and using merkle trees.
- Users can exit the rollup without permission by proving their account is part of the merkle tree.
- Rollups require Zero Knowledge Proofs (ZKPs) to verify off-chain transactions on-chain.
- There is a choice between using the Bitcoin blockchain or an external system for data availability.
Summary :
The choice between using the Bitcoin blockchain or an external system for data availability in rollups presents a dilemma. If the Bitcoin blockchain is used, there is a limit to how much rollups can scale due to blockspace constraints. On the other hand, using an external system removes this scalability limit but introduces security and sovereignty concerns. With Bitcoin, the state of the rollup cannot change without the necessary data being posted on the blockchain, ensuring user withdrawal. However, with an external system, there is a risk of data withholding and block producers holding users' funds hostage. This decision has significant implications for rollup security, scalability, and user autonomy.
Sources :
- Bitcoinmagazine
