ConsenSys Launches ConsenSys Rollups With The Support Of Mastercard, Fostering Innovation and Scalability on the Ethereum Mainnet for Private and Permissioned Blockchains
New York, NY, December 16, 2021 — Today, ConsenSys, the leading Ethereum software company, announced the launch of ConsenSys Rollups, to provide enterprise-grade scalability to leading financial organizations and others, addressing the key challenge of scalable applications on the Quorum tech-stack. ConsenSys leveraged the expertise of Mastercard’s engineering team to design the ConsenSys Rollups solution.
The creativity of projects on Ethereum is exploding in areas such as decentralized finance (DeFi), non-fungible tokens (NFT), gaming, Web 3.0 and the metaverse. Ethereum’s usage is at an all-time-high at over 177 million Ethereum addresses in existence and tens of thousands added each day. However, while high network usage signals strong adoption, it also points to a need for scalability and privacy-enhancing solutions.
With these goals in mind, ConsenSys engaged Mastercard to co-develop key building blocks to make blockchain technology scalable on the Ethereum Mainnet or for private use.
ConsenSys Rollups is an innovative modular software solution for permissioned blockchain applications focused on providing scalability and privacy capabilities that can be connected to any Ethereum Virtual Machine (EVM)-compatible blockchain. It can be used on the Ethereum Mainnet, or on private ConsenSys Quorum networks. ConsenSys Rollups leverage zero-knowledge (ZK) proofs to protect specific transaction elements, such as account balances, sender, recipient, and amount, to prevent this important transaction data from being shared publicly across the network – significantly enhancing the privacy and confidentiality of transactions. Zero-knowledge proof technologies enable one party to demonstrate their knowledge to another without having to share the actual information. In this context, it is used to verify and certify transactions without having to execute them on the blockchain network. Solutions built with ConsenSys Rollups can currently achieve a throughput of up to 10,000 transactions per second (TPS) on a private chain while only 300 TPS can be achieved on private chains and 15 on the Ethereum Mainnet.
Programmability on zero-knowledge rollups is designed to enable additional functionalities in the future. Even higher transaction throughputs are expected to be possible through reliance on trusted parties for data availability.
“ConsenSys Rollups enables vastly more scalability in addition to strong privacy protections to both enhance solutions for existing use-cases and enable new use-cases. This innovative solution will help accelerate the building of the future of finance”, said Madeline Murray, Global Lead of Protocol Engineering at ConsenSys.
ConsenSys Rollups will enable more types of blockchain use cases
By increasing scalability and confidentiality for asset transfers, ConsenSys Rollups enables the implementation of new, innovative use-cases including:
- Central Bank Digital Currencies (CBDCs): CBDCs issuance on top of a ConsenSys Rollups powered Quorum network can provide scalability and privacy capabilities for digital currency transfers among central banks, commercial banks, and retail users.
- Decentralized Exchanges (DEXs): DEXs built with Rollups will bring scalability to Decentralized Finance (DeFi) and NFTs, and more use cases on Ethereum that need faster settlement but the security guarantees of Ethereum.
- Micropayments: Micro payment applications that see users pay, for example, on a per-stream or per-view basis will require high throughput to properly function as large numbers of users interact with platforms and decentralized applications (dapps). Rollups on mainnet will allow Ethereum to scale to meet the demand of new Web3 economic paradigms without network congestion, high fees, or finality challenges.
- Private transfer and taxes: ConsenSys Rollups open a new pattern for confidentiality on the Ethereum Mainnet, or on Enterprise Ethereum (Quorum) powered networks. With partially anonymous rollups, users can transfer or swap tokens and transact with partial anonymity. Use-cases that require auditability and transparency but also maintain user confidentiality will be enabled with rollup solutions. This could remove the next barrier to entry for more DeFi or cryptocurrency users on new services.
Raj Dhamodharan, Executive Vice President of Digital Assets and Blockchain Products and Partnerships at Mastercard says, “We believe there is real potential in blockchain technology helping to solve real-world problems. Consumer protections including privacy and highly scalable infrastructure are key requirements for any blockchain solutions we build. Our collaboration with ConsenSys is a key step in meeting that need and advancing this space.”
ConsenSys Rollups is compatible with all tokens that follow the ERC20 standard.
ConsenSys is the leading Ethereum software company. We enable developers, enterprises, and people worldwide to build next-generation applications, launch modern financial infrastructure, and access the decentralized web. Our product suite, composed of Infura, Quorum, Codefi, MetaMask, Truffle, Diligence and our NFT platform, serves millions of users, supports billions of blockchain-based queries for our clients, and has handled billions of dollars in digital assets. Ethereum is the largest programmable blockchain in the world, leading in business adoption, developer community, and DeFi activity. On this trusted, open source foundation, we are building the digital economy of tomorrow. To explore our products and solutions, visit http://consensys.net/.