Despite recent hype about new technologies, optimistic rollups are a key scaling solution for one layer of blockchain. Industry experts, including Cartesi co-founder Felipe Argento, have highlighted the continued domination of optimistic roll-ups in the Layer-Two (L2) landscape.
A basic optimistic rollup of multi-tier blockchain infrastructure
The optimistic roll-up (or) has been hailed as an innovative scaling solution for the Layer 1 (L1) blockchain, which has led to a bit of dim in the spotlight over the past few months. However, industry experts say its importance is paramount, with data supporting its continued advantage in the Layer 2 (L2) ecosystem.
Felipe Argento, co-founder of Cartesi, a platform that focuses on application-specific rollups, highlights the persistent role of OR. “The overwhelming majority of TVLs in L2 solutions (with locked totals) are still secured by optimistic rollups,” Argento said. “This statistic alone shows that they continue to be fundamental parts of the multi-layer blockchain infrastructure.”
Argento’s observations are consistent with a report showing that OR continues to maintain a large portion of its L2 market share. Data drawn from sources analyzing TVLs in L2 solutions reinforces the fact that other L2 solutions are emerging, but their optimistic rollups remain huge in the sector.
Cartesi co-founders attribute the perception of hype to the inherent challenges of blockchain development. “Unfortunately, generating hype is much easier than writing robust, production-level code. This reality means that flashy and unmature technologies can sometimes attract public attention and obscure the steady progression of established solutions like ORS.
However, Argento, who also serves as a Cartesi Foundation Advisor, remains an optimistic rollup (OR) and continues to be a fundamental tool for scaling Ethereum. His claims are supported by chain dialysis articles comparing ORS with zero knowledge (ZK) rollups. Data from September 10, 2024 showed that the total locked value (TVL) between optimistic rollups and Ethereum was around $186.4 billion compared to ZK-Rollups’ $20.8 billion.
Similarly, Dune Analytics data shows that by February 10, 2024, it had fallen from its high of around $6.55 billion, up from its August 2024 high, but 15 times more than that of ZK-Rollups. This appears to coincide with Argento’s claim that the ORS is dominant despite losing “mindshare to solutions that are essentially dreams and distant promises.”
Full on-chain AI implementation remains difficult
Meanwhile, Argento claims that it is the only technology that allows Linux to run Onchain, and that it is the only technology that allows developers to use programming tools familiar to blockchain applications that are compatible with Ethereum. He told Bitcoin.com News that the technology supports two products. A Cartesy Rollup and Cartesy Coporosser that supports stateful applications that handle stateless calculations. These coporosesers offload Solidity Smart Contracts, improving efficiency and security, and complex tasks that allow applications to be maintained primarily at Layer 1 (L1).
Turning to the burgeoning intersection of artificial intelligence (AI) and cryptocurrency, Argento urged caution, promising to bring about groundbreaking solutions. He argues that implementing on-chaining these technologies could lead to significant technical hurdles that undermine the outlook. He explained:
Running AI completely on-chain remains extremely challenging from a technical standpoint. Most projects encounter two major issues, compatibility and scalability, when they try to move from hype and narrative to real-world implementations.
Argento’s perspective is consistent with his previous emphasis on the importance of a more robust and production-level code than a fleeting narrative. He argues that many projects combining AI and cryptography struggle to bridge the gap between theoretical concepts and practical applications.
When asked about the perceptual risks posed by the L2 chain to native chains, the co-founder of CARTESI said blockchain software development, particularly for L2 solutions, requires extreme caution and rigorous testing. This is wise considering the immeasurable responsibility of managing financial assets.
He also emphasizes the importance of minimizing new trust assumptions, aiming for solutions that rely solely on the basic requirements of at least one honest actor. Furthermore, he argues that leveraging proven “battle-tested” Web2 software can enhance security by avoiding the risks associated with reinventing established tools.
By focusing on careful development and minimizing additional trust requirements, Argento concludes that L2 solutions essentially do not create security liabilities. Instead, it could improve overall security by integrating robust existing software.
