Rollkit Proposes Second Layer Solution for Bitcoin: Understanding Sovereign Rollup Technology
Rollkit has announced the development of a modular framework for rollups, which enables “sovereign rollups” on Bitcoin, according to the firm. Rollups are batches of off-chain transactions that are compiled into a single on-chain transaction, freeing up blockspace and lowering transaction costs. Sovereign rollups are not reliant on a smart contract or settlement layer for validation, and are scalable and secure. Rollkit’s new solution allows users to produce rollups by retrieving and storing data on the Bitcoin blockchain, and follows the launch of the first NFT on Bitcoin, which similarily demonstrated that arbitrary data can be posted to the blockchain using Taproot. Some Ethereum proponents are skeptical of the use of the term “sovereign rollups”, arguing that Rollkit’s solution is an alt L1 that stores its block data on Bitcoin and inherits none of its security features. Others compare it to Stacks, a high functionality layer 1 protocol that settles its blocks on the Bitcoin blockchain, but note some key differences. The technically challenging aspect of both the Stacks layer and sovereign rollups is moving bitcoin in and out of the layer, said Stacks co-founder Muneeb Ali.