The original title is: "Layer 2 Unpacked: How Rollups Slash Ethereum's Fees and Fix Congestion"

Short summary

Layer 2 rollups batch transactions off-chain and anchor proofs to Ethereum, cutting fees from $50+ to fractions of a cent while preserving security through optimistic assumptions or zero-knowledge cryptography. Optimistic rollups prioritize EVM compatibility with 7-day withdrawals; zk-rollups offer instant finality at higher computational cost. Institutional RWA tokenization and DeFi adoption are accelerating despite risks from sequencer centralization and bridge exploits.

• •Rollups reduce Ethereum fees 100x by batching off-chain transactions with on-chain proof anchoring
• •Optimistic rollups (simpler, EVM-compatible) vs zk-rollups (faster finality, computationally intensive) serve different use cases
• •Financial institutions adopting Layer 2 for RWA tokenization and cost alignment with traditional finance expectations

Generated with AI, which can make mistakes.