Rollups have emerged as a prominent method for scaling Bitcoin, aiming to overcome Lightning Network's liquidity limitations by enabling off-chain transactions without prior fund allocations.
Unlike the Lightning Network, which relies on channel balances for transactions, rollups allow a single UTXO to hold multiple users' balances, simplifying the withdrawal process.
An ideal rollup architecture would enable users to exit without operator permission through signed transactions that verify their account's status in the merkle tree.
The role of Zero Knowledge Proofs in rollup transactions is crucial as operators must submit these proofs on-chain to update user balances securely.
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