The future of Bitcoin rollups will depend on continued innovation and optimization in data compression and scalability.
A Galaxy Research report has suggested that most Bitcoin layer-2 scaling networks, particularly “rollups,” may not be sustainable in the long term despite their popularity as a promising method to keep Bitcoin payments cheap, fast and decentralized.
In the report published on Friday, Aug. 2, Galaxy analyst Gabe Parker highlighted the cost of posting data as a fundamental challenge Bitcoin rollups face that post data to the base layer.
Parker explained that for Bitcoin rollups to thrive, they must generate substantial revenue from transaction fees on their own networks. This revenue must come from many users willing to pay for transactions on the layer-2 networks.
