Exploring the Business Model of Rollup: Why is it said that doing Rollup is a good business?
It is predicted that various exchanges will issue their own Rollups. The platform token may gain another utility.Author: Lightning HSL
Coinbase has announced its rollup testnet, Base, officially declaring its intention to develop Rollup.
The business model of Rollup is very simple: it earns the difference in miner fees.
Once a Rollup is built, using current OP or AB technology, it essentially becomes an EVM-compatible smart contract platform. For Dapps and users, it is functionally equivalent to the ETH main chain, and its completeness is also nearly equivalent.
However, Rollup can achieve miner fees that are far lower than the main chain, along with faster block confirmation speeds and higher TPS, among other advantages, which can attract third-party smart contract developers to deploy contracts and users to utilize them.
Users need to pay miner fees when sending transactions on Rollup. These miner fees are essentially paid to the Rollup operator first.
For the Rollup operator, they need to periodically batch the transactions on Rollup and upload them to ETH-L1, which requires paying a miner fee.
The difference between these two miner fees is the gross profit from operating the Rollup.
The key to Rollup's success should be TVL, as exchanges have sufficient assets. As long as exchanges directly enable users to deposit and withdraw coins to their own Rollup chain, it will be very easy to attract users.
The cost of running a Rollup is significantly lower compared to creating a chain.
The lower cost is because Rollup does not need its own consensus mechanism, does not require its own token, and theoretically only needs one server to start running.
For example, the BSC chain requires at least 20 nodes, which means purchasing quite a few servers, along with providing a large amount of BNB as collateral to start the chain. These costs can be substantial.
Now that Rollup technology has matured, major exchanges have found a good business opportunity in developing Rollup.
The so-called maturity of Rollup technology means that there are mature and reliable open-source Rollup project codes available on the market that can be forked and modified to create their own Rollup.
It is predicted that various exchanges will issue their own Rollups. This may add another layer of utility to platform tokens.
