Oasis Network Architecture: Designed for Scaling
The Layer 2 scaling solutions have evolved from “sidechains” to “commitchains”, “rollups”, and validating bridges. “Rollup” refers to running a smart contract virtual machine (VM) where the VM’s state is periodically verified and committed to an underlying blockchain to provide smart contract functionality at a reduced cost and a higher throughput rate, as opposed to running smart contracts directly on the underlying blockchain. Verification done at the underlying blockchain secures the state transitions, and the off-chain computation allows smart contract execution to scale.
