What is a Sovereign Rollup? Rollkit Pitches Second Layer for Bitcoin


Just a few months after the very first NFT was inscribed into Bitcoin, developers are trying to imbue the age-old blockchain with another new-age technology: rollups. At least that’s what Rollkit—a self-described “modular framework for rollups”—claimed over Twitter on Sunday, revealing a research integration that would allow “sovereign rollups” on Bitcoin.According to Rollkit, its new rollup solution lets users produce rollups by retrieving and storing data on the Bitcoin blockchain. It was inspired by Ordinals, the Bitcoin NFT protocol which showed developers that—using Taproot—users could post arbitrary data to the blockchain.This content is not available due to your privacy preferences.Update your settings here to see it.In the traditional sense, rollups are batches of transactions that are “rolled up” off chain into one transaction, and then posted to Ethereum as a single on-chain transaction. This helps free up blockspace and lower transaction costs on the network, while still inheriting the settlement assurances of the base chain. 


A sovereign rollup is one that does not need a smart contract or use a settlement layer for validation—scalable and secure and with the "sovereignty" of a layer 1.However, some proponents of Ethereum, a network known to use layer-2 “rollups” as a transaction scaling solution, have taken issue with Rollkit’s use of the term. Ryan Berckmans, a Web3 and Ethereum investor, said on Twitter that the sovereign rollup “is actually an alt L1 that stores its block data on Bitcoin.”According to Alexei Zamyatin, founder of the Bitcoin DeFi protocol Interlay, sovereign rollups as proposed by Rollkit inherit “nothing” of Bitcoin’s security.“Data availability—okay, but honestly, that's been used since 2012,” he continued. “The entire post describes 'I write some data to Bitcoin' with fancy buzzwords.”Rollkit is still bullish on the possibilities.“


This new integration expands the possibilities for rollups, and also has the potential to help bootstrap a healthy blockspace fee market on Bitcoin, enabling a more sustainable security budget,” the company writes.Some are likening sovereign rollups to Stacks, a high functionality layer 1 protocol that settles its blocks on the Bitcoin blockchain for security purposes. Stacks co-founder Muneeb Ali said on Twitter that this is an apt comparison, but noted some key differences.On one hand, it takes 150 Stacks blocks before a transaction reaches”Bitcoin finality” on Stacks, but only 1 with sovereign rollups. On the other, Stacks blocks publish their data to Bitcoin in an efficient manner by merely hashing the data on-chain, whereas sovereign rollups publishes the full data. “The technically challenging part for both the Stacks layer and sovereign rollups is moving BTC in and out of the layer, said Ali. “The decentralized BTC peg is the most important part.” 


Source : [What is a Sovereign Rollup? Rollkit Pitches Second Layer for Bitcoin](finance.yahoo.com/news/sovereign-rollup-rollkit-pitches-second-020308146.html) undefined - Yahoo crypto / March 07, 2023

rayn.finance logo


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act. How we keep your money safe.