Rollups
Rollups are a relatively new L2 solution being implemented on Ethereum that enables exponential scalability gains while providing (nearly) identical security guarantees as mainnet Ethereum. The primary innovation of rollups is that they move computation off-chain while storing only the bare minimum of transaction data on-chain with no added trust assumptions. Rollups execute transactions in a new environment (off-chain) and bundle them before delivering the changed state and transaction data to Ethereum. The executed changed state is then uploaded to Layer 1 and confirmed in a verification contract using either validity or fraud proof techniques.