Transaction Rollups

High-frequency transactions are hard to achieve on a blockchain that is decentralized and open. For this reason, many blockchains offer the possibility to define “layer-2” solutions that relax some constraints in terms of consensus to increase transaction throughput. The layer-1 (the main blockchain) acts as a gatekeeper for several layer-2 (secondary blockchains), and provides economic incentives to prevent attacks.

Introduction to Optimistic Rollups

Optimistic rollups are a popular layer-2 solution, e.g., on the Ethereum blockchain (Boba, Arbitrum, Optimism, etc.). When it comes to an optimistic rollup, the layer-2 operates using a logic similar to the layer-1, but it is updated off-chain, potentially much faster, and its changes are regularly committed to layer-1.

The layer-1 implements a decentralized ledger (called the layer-1 context thereafter) that participants of the network can update thanks to authenticated layer-1 operations. These operations are grouped together in layer-1 blocks (hence the name “blockchain”).

Similarly, the layer-2 implements a ledger (called the layer-2 context), that participants can update by sending messages stored in the layer-1 context in an inbox, with a precise semantics for the interpretation of messages on top of a layer-2 context, resulting in the production of a new layer-2 context.

More precisely, an optimistic rollup works as follows:

  1. Certain layer-1 operations will append messages to the inbox. The inbox is analogous to the layer-1 blocks. As such, the consensus of the layer-1 decides which messages the layer-2 has to consume, and in which order.

  2. The layer-2 context is updated off-chain by a rollup node, using the semantics of the messages.

  3. A layer-1 operation allows the rollup node to include the hash of the layer-2 context after the execution of the layer-2 operations in the layer-1 context.

  4. The layer-1 implements a procedure to reject erroneous hashes of the layer-2 context (e.g., submitted by an attacker).

  5. After a period of time specific to each rollup implementation, and in the absence of a dispute, the hashes of the layer-2 context become final, that is, they cannot be rejected. We call layer-2 finality period the time necessary for the hash of a layer-2 context to become final. In the meantime, new layer-1 operations may have filled the inbox with new messages that call for pursuing the same workflow.

The layer-2 context is encoded in a Merkle tree, an ubiquitous data structure in the blockchain universe with many interesting properties. One of these properties is significant in the context of optimistic rollups: it is possible to prove the presence of a value in the tree without having to share the whole tree, by means of Merkle proofs. This property ensures that the procedure to reject a hash does not require to compute the whole layer-2 context.

The rollup node is a daemon responsible for interpreting the messages (as stored in the inbox) onto the layer-2 context, and for posting the resulting hashes in the layer-1. In “optimistic rollup”, the word “optimistic” refers to the assumption that at least one honest transaction rollup node will always be active to reject erroneous hash. The presence of a single honest node is sufficient to guarantee the correct application of the layer-2 operations in the rollup. In its absence, nothing prevents a rogue node to post a maliciously tampered layer-2 context.

Introduction to Transaction Rollups

Transaction Rollups are an implementation of optimistic rollups in Tezos, characterized by the following principles:

  1. The semantics of the messages consists of the transfer of assets represented as Michelson tickets.

  2. The procedure to reject erroneous hashes allows for a short finality period of 30 blocks.

  3. They are implemented as part of the economic protocol of Tezos directly, not as smart contracts.

The latter design choice, made possible by the amendment feature of Tezos, allows for a specialized, gas- and storage-efficient implementation of optimistic rollups.

Note that it is possible to create any number of transaction rollups on Tezos. They are identified with transaction rollup addresses, assigned by the layer-1 at their respective creation (called origination in Tezos to mimic the terminology used for smart contract). They are prefixed by txr1 when encoded in a base58 alphabet (see also the kinds of address prefixes in Tezos).

Workflow Overview

Transaction rollups allow for exchanging financial assets, encoded as Michelson tickets, at a higher throughput than what is possible on Tezos natively.

Analogous to layer-1 addresses, layer-2 addresses identify assets holders in the layer-2 ledger, meaning layer-2 addresses own and exchange Michelson tickets. They are prefixed by tz4 when encoded in a base58 alphabet.

The expected workflow proceeds as follows.

  1. Layer-1 smart contracts can deposit tickets to a transaction rollup for the benefit of a layer-2 address.

  2. A layer-2 address is associated with a cryptographic public key, and the owner of the companion secret key (called “the owner of the layer-2 address” afterwards) can sign transfer orders. These orders are for the benefit of either another layer-2 address (meaning the transfer order only concerns the layer-2) or a layer-1 address (making the transfer order a withdrawal of their asset outside of the transaction rollup).

To be interpreted by the transaction rollup, transfer orders have to be signed by (1) the owner of a layer-2 address, and (2) the owner of a layer-1 address. This is because they are wrapped in a dedicated layer-1 operation.

While owners of layer-2 addresses who also own a layer-1 address can submit their transfer and withdraw orders themselves, the expected workflow is that they delegate this to a trusted transaction rollup node, which can batch together several layer-2 operations signed by several owners of layer-2 addresses and submit only one layer-1 operation.

Implementation Overview

Here we examine the specific implementation of transaction rollups in Tezos.


Anyone can originate a transaction rollup on Tezos, as the result of the layer-1 operation Tx_rollup_origination. In a similar manner as contracts, transaction rollups are assigned an address, prefixed by txr1 when encoded with a base58 alphabet.

Exchanging Tickets

The main objective of a transaction rollup is to allow Michelson tickets to be exchanged between layer-2 addresses. Before diving into more details on how these exchanges happen, it is necessary to discuss how layer-2 addresses and tickets are identified in the layer-2.

First, a layer-2 address is primarily identified by a Blake2B, 20-bytes long hash of a BLS public key (prefixed by tz4 when encoded with a base58 encoding). Besides, the layer-2 assigns an integer to each layer-2 address, which can be used in place of the hash of the BLS public key. This design choice allows for reducing the size of the layer-1 operations responsible for appending messages to the inbox of a transaction rollup, which in turn allows for publishing more of these layer-1 operations in a layer-1 block. This is an essential property to give transaction rollup a high throughput.

Secondly, a similar mechanism is implemented for ticket identifiers. By default, tickets are identified by 32-byte hashes computed by the economic protocol. However, the layer-2 also assigns integers to ticket hashes, to save up block space.

Ticket Deposit

Initially, the layer-2 ledger of the newly created transaction rollup is empty. This ledger needs to be provisioned with tickets, which are deposited into layer-2 by layer-1 smart contracts. They do so by emitting layer-1 transactions to the transaction rollup address, targeting more specifically the deposit entrypoint, whose argument is a pair consisting of:

  1. a ticket (of any type), and

  2. a layer-2 address (of type tx_rollup_l2_address in Michelson), which can either be a natural number or a base58 encoded public key hash.

Only smart contracts can send tickets to rollups.

Here is a minimal example of a smart contract depositing unit tickets to a Transaction Rollup:

parameter (pair address tx_rollup_l2_address);
storage (unit);
code {
       # cast the address to contract type
       CONTRACT %deposit (pair (ticket unit) tx_rollup_l2_address);

       IF_SOME {

                 # amount for transferring
                 PUSH mutez 0;

                 # create a ticket
                 PUSH nat 10;
                 PUSH unit Unit;

                 PAIR ;

                 # deposit

                 DIP { NIL operation };

                 DIP { PUSH unit Unit };
               { FAIL ; }

When its default entrypoint is called, this smart contract emits an internal transaction targeting a transaction rollup in order to deposit 10 unit tickets for the benefit of a given layer-2 address.


Once a layer-2 address has been provisioned with a ticket, the owner of this address can transfer it to other layer-2 addresses.

Transfer orders are divided into two parts: a header, which identifies the emitter, and one or more payloads, which specify as many transfer orders.

More precisely, the header consists in:

  1. The layer-2 account authoring the operation, also called its signer

  2. The counter associated to this layer-2 address.

Counters are an anti-replay measure commonly used in blockchains. For instance, Tezos uses a similar mechanism. See the documentation for more information.

Then, the payload allows the signer to transfer the ownership of a given ticket in a given quantity for the benefit of a given address. More precisely, the payload consists in

  1. A destination address. It can either be a layer-1 address, that is a tz1, or a layer-2 address, that is a tz4 or the integer associated with this address by the layer-2.

  2. A ticket hash identifying the asset to exchange, or the integer associated with this ticket hash by the layer-2.

  3. The quantity of the ticket being exchanged, encoded as an int64 value.

The mapping between the layer-2 addresses and their associated integers is maintained by the transaction rollup node.

The interpretation of a transfer order will fail in the following cases:

  1. If the signer of the operation does not own the required quantity of the ticket.

  2. If the new balance of the beneficiary of the transfer after the application of the operation overflows. The quantity of the ticket a layer-2 address owns is encoded using a int64 value. This is a known limitation of the transaction rollups, made necessary to bound the size of the rejection payload so that it can fit in a layer-1 operation.

Transfers can be grouped inside a transaction. A transaction is atomic: if any transfer of the transaction fails, then the whole transaction fails and leaves the balances of the related addresses unchanged. This can be useful to implement trades. For instance, two parties can agree upon exchanging two tickets without having to trust each other for the emission of the counter-part transfer. For a transaction to be valid, it needs to be signed by the authors of the transfers it encompasses.

If a transaction fails (because a transfer within that transaction fails), the transfers are ignored, but the counters of their signers are updated nonetheless. This means the transaction will need to be submitted again, with updated counters, if the error is involuntary.

Transactions are submitted in batches to the layer-1, via the Tx_rollup_submit_batch layer-1 operation. A batch of transactions contains the following pieces of information:

  1. The list of transactions that are batched together.

  2. A BLS signature that aggregates together all the signatures of all the transactions contained by the batch.

A batch of transactions is invalid if the aggregated BLS signature is incorrect (e.g., if one of the included transactions is invalid). Such an invalid batch is discarded by the transaction rollup node, and the counters of the signers are not incremented. This means they can be submitted again in a batch with a valid signature.

Getting Started

Originating a Transaction Rollup

The tezos-client has a dedicated command that any implicit account holder can use to originate a transaction rollup.

tezos-client originate tx rollup from <implicit account address>

where tx is an abbreviation for transaction.

The origination of a transaction rollup burns ꜩ15.

A transaction rollup address is attributed to the new transaction rollup. This address is derived from the hash of the Tezos operation with the origination operation similarly to the smart contract origination. It is always prefixed by txr1. For instance,:


is a valid transaction rollup address.

When using the tezos-client to originate a transaction rollup, it outputs the newly created address.

Interacting with a Transaction Rollup using tezos-client

The tezos-client provides dedicated commands to interact with a transaction rollup. These commands are not intended to be used in a daily workflow, but rather for testing and development purposes.

It is possible to use the tezos-client to submit a batch of layer-2 operations.

tezos-client submit tx rollup batch <batch content in hexadecimal notation> to <transaction rollup address> from <implicit account address>

It is also possible to retrieve the content of an inbox thanks to a dedicated RPC of the tezos-node.

tezos-client rpc get /chains/main/blocks/<block>/context/tx_rollup/<transaction rollup address>/inbox/<offset>