Optimistic Rollups

Optimistic rollups are a scaling solution that assumes all transactions are valid by default, only performing a cryptographic check if a dispute is raised. This approach allows for higher throughput because it avoids the immediate overhead of generating validity proofs for every transaction.

In the context of derivatives, this provides a fast, efficient way to process trades while keeping the system secure through a fraud-proof mechanism. If a malicious transaction is detected, it can be challenged and reversed, protecting the integrity of the protocol.

Optimistic rollups offer a good balance between scalability and ease of implementation for complex smart contracts. They are widely used to support decentralized exchanges that require high transaction volumes and low costs.