Component Overview

Rollup is a layer 2 scaling solution that aims to increase the throughput of the network by processing transactions off the main Ethereum blockchain (layer 1) and then posting the transaction data back to it. Rollups execute transactions outside the main Ethereum chain but store transaction data on it, ensuring the security properties of the Ethereum mainnet while significantly improving scalability and reducing fees.

Polygon leverages these rollup technologies to batch transactions before finalizing them on the Ethereum blockchain. This process effectively reduces the strain on Ethereum, allowing for more transactions per second, lower gas costs, and faster confirmations — all while maintaining a high level of security through the integrity of the main Ethereum ledger. Rollups are a key part of Polygon’s multi-layered approach to scaling Ethereum and have been a significant focus in the broader Ethereum community for layer 2 scaling solutions.

In Polygon, identity refers to a unique entity that can interact with the network. This identity could represent a person, a group of individuals, an organization, or even a smart contract. Identities in blockchain networks are typically tied to cryptographic keys, which provide a secure method of proving ownership and granting permissions.

Each identity has an associated pair of cryptographic keys. The public key can be shared with others and is used to receive transactions, while the private key is kept secret and is used to sign transactions, thereby proving ownership and authorizing actions on the network.

A DAC is a group of permissioned nodes whose core responsibility is to attest that the transaction data needed to reconstruct the state of the L2 is available. Projects built with Polygon CDK configure the make-up of DAC members in the datacommittee.sol contract on Ethereum.

A smart contract on the Polygon network is a self-executing contract where the terms of agreement or conditions are written directly into code. These contracts run on the blockchain, making them immutable and distributed, which means once deployed, they cannot be altered and are accessible to all network participants.

These extend the capabilities of Ethereum smart contracts by offering a more efficient and cost-effective environment for execution. They are fundamental to a wide range of applications and services in the blockchain ecosystem, driving innovation in how contracts and agreements are formulated and executed in the digital world.