The Challenges and the Rise of Alternative L1s
Ethereum has long been the leading blockchain platform for smart contracts, revolutionizing the way decentralized applications (dApps) are built and operated. However, it has faced significant scalability challenges as user demand has surged. In 2017, the NFT-based game CryptoKitties caused unprecedented congestion on the Ethereum network, exposing its limitations in handling large transaction volumes. This seemingly simple application, where users bred and traded digital kittens, slowed down the network and drove up gas fees, highlighting the urgent need for scaling solutions.
By 2020-2021, the boom in Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) exacerbated these issues, pushing transaction costs to prohibitive levels. A single transaction on Ethereum could cost users $5-$20 or more during peak congestion, making it impractical for many applications. This drove users to explore alternative Layer 1 (L1) blockchains like Solana, Harmony, Terra, and Fantom, which promised lower costs and faster transaction speeds. For a time, these alternatives gained traction, with Solana achieving notable success due to its high throughput and low fees.
However, these alternative L1s came with their own set of challenges. Harmony suffered a significant setback when its Horizon Bridge was hacked in June 2022, resulting in the theft of $99.6 million in crypto assets and a severe loss of user trust. Similarly, Terra’s ecosystem collapsed in 2023 due to the failure of its UST stablecoin, which fell from $1 to under 12 cents, wiping out over $40 billion in value and exposing the instability of newer blockchains. These incidents underscored the risks of relying on less-tested networks and drove users back to Ethereum, which has a long history of proven security through extensive use and testing. While Ethereum continues to address its scalability challenges, the need for secure, reliable data infrastructure—particularly for oracles-remains a critical gap that Orochi Network is uniquely positioned to fill. 
The Ups and Downs of Competing Blockchains
Ethereum, one of the most popular blockchains, has long faced issues like high fees and sluggish transaction speeds. This frustration pushed many users to try out other Layer 1 blockchains—standalone networks like Solana, Harmony, Terra, and Fantom. These alternatives promised faster transactions and cheaper costs, and for a while, they delivered. Solana, for example, gained a huge following by focusing on speed and affordability, while Harmony and Terra lured users with similar perks. At one point, a big chunk of Ethereum’s users jumped ship to these new options.
But lately, the tide has turned. Data shows that many of these alternative blockchains are losing steam. Metrics like Total Value Locked (TVL), transaction volume, and gas fees on these networks have plummeted from their peaks. People are drifting back to Ethereum, and it’s not hard to see why. Newer blockchains, while exciting, come with risks. Harmony, for instance, took a massive hit when hackers attacked its Horizon Bridge, draining funds and shaking people’s trust. Terra’s collapse was even more dramatic—its UST stablecoin failed, wiping out value and proving how shaky some of these projects can be. These flops highlighted a big problem, many alternative blockchains aren’t as secure as they need to be, especially when linking to other networks.
Ethereum, on the other hand, has a rock-solid reputation. It’s been around longer, tested by time, and trusted by millions. Sure, it’s had trouble handling lots of users at once, but it’s never compromised on security or decentralization. That reliability is pulling people back. Plus, Ethereum’s got a new trick up its sleeve: rollups. These upgrades make it faster and cheaper without ditching its strong foundation. Even Solana, a standout among alternatives, is exploring rollup-like solutions (like the “Bullet L2” project) to keep up with demand.
What’s a Rollup, Anyway?
Alternative blockchains were a quick fix, but they didn’t solve the root issue. Ethereum needed a better way to grow—one that kept its strengths intact. Enter rollups, with innovators like Orochi Network pushing the boundaries even further.
Think of rollups as a helper for Ethereum. They take the heavy lifting off the main network by processing transactions separately, then send a summary back to Ethereum for safekeeping. It’s like outsourcing the busy work but keeping the important stuff secure. This setup speeds things up and cuts costs, all while leaning on Ethereum’s battle-tested security.
Every calculation it does gets double-checked by thousands of computers worldwide. That’s what makes it so safe—but also slow and expensive. Rollups handle most of those calculations elsewhere, then report back with a simple “here’s the answer” that Ethereum can trust. With Orochi Network’s zkDA layers, this “answer” comes with an extra layer of assurance, proving the data’s correctness without revealing sensitive details.
How Rollups Keep Things Running Smoothly
Rollups work by bundling up tons of transactions off to the side. They crunch the numbers, pack everything into a tight little package, and send a single summary—called a “state root”—to Ethereum. This state root is like a snapshot of everything that happened: account balances, smart contract updates, you name it. It’s locked in with cryptographic magic, so Ethereum can verify it without redoing all the work. Orochi Network’s zk Database supercharges this process by using ZKPs to create a Verifiable Data Pipeline, ensuring that the state root isn’t just a summary—it’s a provably accurate one.
In a way, rollups are like mini-blockchains that piggyback on Ethereum. They do their own thing but stay tied to Ethereum’s security and storage. To keep everything honest, they make sure all the transaction details are available for anyone to check. This “data availability” is key—if the info disappeared, no one could confirm the rollup was playing fair.
Rollups use clever tricks like fraud proofs or validity proofs to double-check their math. A “sequencer” steps in to organize transactions fast, giving users instant feedback. The sequencer bundles everything up, compresses it, and sends it to Ethereum with proof it’s all correct. With Orochi Network’s approach, this proof is powered by zkDatabase, making it not just efficient but also cryptographically verifiable. The rollup tracks balances and contract details, and anyone can rebuild the full picture from the shared data—made even more reliable with zkDatabase’s focus on secure, scalable data management. It’s efficient, secure, and, thanks to innovations like Orochi Network, a game-changer for Ethereum’s future.
Real-World Impact and Metrics
According to recent metrics, Layer 2 solutions that leverage ZKPs have seen a dramatic increase in adoption, with total value locked (TVL) surpassing $ 38 billion—representing a significant portion of the total value across all blockchain networks. Transaction volumes on ZK-based L2s are also impressive, processing up to 13 times the volume of the main Ethereum network. These numbers underscore the growing demand for scalable, secure, and cost-effective solutions that can support the next wave of decentralized applications. 
How Rollup Works?
The mechanism involves batching transactions off-chain, compressing them, and submitting a summary (state root) to the main chain. This state root acts as a cryptographic fingerprint of the rollup’s state, encompassing account balances, smart contract data, and other changes after processing the transactions. Ethereum tracks these state roots, ensuring all rollup changes are verifiable and secure.
Rollups act like independent blockchains that post their actions to another blockchain, allowing them to benefit from the consensus mechanism and data storage of the main chain. This is crucial for maintaining security, as it leverages Ethereum’s established infrastructure.
Data availability refers to the guarantee that the transaction data underlying a rollup is accessible to anyone who needs to verify the rollup's state. This is crucial for security: if the data were unavailable, it would be impossible to check if the rollup operator was acting honestly. In rollups, transaction data, although compressed, is typically posted to Ethereum to allow the rollup's condition to be checked by everyone, and the full state of the rollup to be reconstructed if needed. For ZK Rollups, while the proof verifies, the data itself is still necessary for users to interact with the rollup, such as withdrawing funds, as explained in
The types of Rollup?
There are two types of Rollups:
Optimistic Rollups: These, used by projects like Arbitrum and Optimism, assume transactions are valid unless someone challenges them within a 7-day period. If challenged, a fraud proof is used to check validity, making them simpler but slower for finality. Some third-party services offer quicker withdrawals, but this comes with added trust risks.
ZK Rollups: These, used by projects like zkSync and StarkNet, use advanced cryptography (Zero-Knowledge Proofs) to prove every transaction is valid before finalizing, offering immediate results but requiring more computing power. This can be more private and secure, but it’s more complex
Orochi’s Rollup Evolution
Orochi Network’s Zk-data-rollups build on the proven technology of ZK-Rollups, widely used to enhance scalability in Layer 2 solutions across Web3. By adopting this approach, Zk-data-rollups deliver both security and cost-efficient verification, compressing data's proofs into succinct, cryptographically verified proofs without compromising privacy. This design mirrors the efficiency and trust that ZK-Rollups bring to blockchain transactions, making Zk-data-rollups an ideal solution for secure, low-cost data handling in the Web3 ecosystem, further solidifying Orochi Network’s commitment to innovation and reliability. Orochi Network’s implementation includes a zk Database and zk Data Availability (zkDA) Layers.
The zk Database provides a verifiable data pipeline, ensuring that all data is correct and has not been tampered with, while the zkDA Layers guarantee that this data is accessible and can be verified without compromising privacy. This focus on data verification addresses critical Layer 2 challenges, such as data availability and trust, making them particularly suited for applications like decentralized finance (DeFi) and real-world asset (RWA) tokenization that rely on verified and private data. Buil with ❤️and 🦀
