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Settlement Modes

Where do the MRUs live?

Micro-Rollups (MRUs) offer versatile deployment options, enabling them to operate efficiently across different blockchain layers. These strategies not only optimize transaction costs and speed but also enhance the development and user experience.

Settle on Layer-1

MRUs can be deployed as standalone rollups that settle transactions directly on Ethereum mainnet. This approach allows developers to leverage the security and liquidity of Layer-1 assets while offering a more cost-effective and user-friendly alternative to direct smart contract interactions on L1.

For developers, this simplifies the development process, as they can focus on application logic without delving into the complexities of L1 blockchain nuances. Essentially, it mirrors the development experience of traditional web2 applications, albeit with the underlying transactions and state changes anchored securely on the main blockchain.

Settle on Layer-2 (Soon)

General purpose L2s as Parent chain

MRUs can integrate with general-purpose Layer-2 solutions to finalize their transactions. This model benefits from the reduced transaction costs and increased processing speeds of L2 networks, making it an economical choice for applications requiring high throughput. By settling on an L2, MRUs can tap into the existing infrastructure and security of these networks, further streamlining the development process.

App-specific L2s as Parent chain

Deploying MRUs on application-specific Layer-2 networks represents a highly targeted approach, ideal for niche applications. For instance, a micro-rollup designed for the gaming industry can settle transactions on a gaming-focused L2, optimizing for the unique requirements of in-game asset exchanges. This not only ensures lower costs and higher efficiency but also provides a tailored environment that can enhance the overall performance and user experience of the application.

Additional Considerations

Scalability

MRUs, by settling on either L1 or L2, can significantly enhance scalability. By offloading computation and state management to MRUs and leveraging the security and verification mechanisms of their parent chains, applications can achieve higher transaction throughput without sacrificing decentralization or security.

Developer and User Experience

MRUs abstract much of the blockchain complexity from developers, allowing them to create applications in familiar development environments. This ease of development, combined with the potential for lower transaction fees and faster processing times, greatly benefits end-users, who can enjoy smoother and more affordable interactions with blockchain-based applications.

Flexibility and Innovation

The choice between settling on L1 or L2 allows developers to strategically position their applications within the blockchain ecosystem, optimizing for factors such as security, cost, and speed based on the specific needs of their application and its users and also the user base