CandleFocus

Understanding the debate around based rollups

Author: Content Editor
Based rollups in Ethereum are gaining popularity due to their use of the layer-1 as a sequencer, providing censorship resistance and interoperability. This sequencing method ensures the same liveness guarantees as Ethereum layer-1 blocks and avoids potential censorship issues with centralized sequencers. Based rollups allow for synchronous composability, enabling smart contracts on different layer-2s to be bridged and called within the same block. However, based rollups face challenges with fee uncertainty and are constrained by the layer-1's 12-second block time. To address these issues, Taiko, the largest existing based rollup, has implemented zk proofs and Intel's SGX trusted execution environment. While based rollups may lose out on maximal extractable value (MEV) revenue due to the lack of a centralized sequencer, alternatives such as auctioning execution tickets to layer-1 block proposers can be explored. The rollup revenue model is shifting towards congestion fees rather than MEV fees. The benefits of based rollups bring Ethereum's user experience back to its original vision, providing irony considering these benefits were initially present in all blockchains.

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