Ethereum Proposes Native Rollups for Enhanced Security and Scalability

Ethereum researcher Drake Justin has proposed a new upgrade for the Ethereum blockchain that aims to address the security flaws inherent in rollups, which are Layer 2 (L2) solutions designed to enhance Ethereum's scalability by processing transactions off the main chain. Currently, rollups often rely on centralized mechanisms such as multisig wallets or security councils to ensure their operations, which introduces points of failure in an otherwise decentralized system.

The proposal introduces the concept of "native rollups," which would allow rollups to inherit the full security of Ethereum's Layer 1 (L1) blockchain. This would eliminate the need for separate security mechanisms and ensure that rollup transactions are verified directly by Ethereum's validators. The proposal includes an "EXECUTE precompile," a highly efficient smart contract within the Ethereum protocol that verifies the validity of rollup transactions. This precompile checks if the trace of transactions and state changes is valid, if the execution uses the correct amount of gas, and if the post-state root matches the expected outcome.

There are two main approaches to implementing this upgrade: the re-execution approach, where Ethereum validators re-execute the rollup transactions to verify their correctness, and the SNARK-based approach, which uses zero-knowledge proofs to verify execution without redoing all the work. The proposal does not favor one specific SNARK system, allowing validators to choose their preferred verification clients, thereby promoting diversity and resilience.

Ask Aime: "Will Ethereum's new rollup upgrade secure Layer 2 solutions?"

The benefits of native rollups are manifold. For users, it means true security, as their assets on L2s would be as secure as on Ethereum L1. It also eliminates the need for trusted operators and enables synchronous composability, allowing L2s to interact with L1 contracts in real-time. For developers, building a rollup becomes simpler, and verification becomes more efficient. For Ethereum, this upgrade would increase fee revenue, enhance the value of ETH, and provide a clear path for existing L2s to upgrade.

The proposal also addresses the concept of "Based Rollups," which aim to decentralize and secure the L2’s sequencing layer by tying it directly to Ethereum's L1 block production. In a Based Rollup, the right to order and propose the next batch of rollup transactions is given to the current L1 block proposer, inheriting the L1's censorship resistance and MEV protection.

In summary, native rollups represent a significant advancement in Ethereum's scalability and security. By allowing Ethereum itself to verify rollup execution, this upgrade eliminates the need for centralized components while maintaining the performance benefits of rollups. This creates a win-win situation for both Ethereum and its L2 ecosystem, enhancing security, increasing fee revenue, and boosting the value of ETH. As Eigenlayer's founder Sreeram Kannan noted, this is a "slam dunk idea" that benefits all parties involved.