Challenges

Users

• Complexity: Users face the complexity of managing multiple wallets and gas tokens for different Rollups. A user might need to source the gas token from an exchange and bridge to the desired rollup before actually even using it.

• Rollups Overload: The vast number of Rollups creates an overwhelming experience, similar to needing different batteries for each toy.

• Barriers to Entry: Complex technical requirements and management needs create high barriers that discourage new users.

• Fragmentation: The scattered user experience across multiple systems reduces both user engagement and adoption.

Rollup/RollApp Operators

• Adoption: Rollups require heavy incentivization and airdrops to attract users.

• L2 Bridging: Notable Security assumptions for the cross chain messaging platforms along with substantial waiting times for cross-chain bridging.

• Userbase Fragmentation: The steep learning curve for new users to start using a new rollup forces rollup operators to implement costly incentivization programs to attract participation.

• Liquidity Fragmentation: The rollup operator must secure liquidity for their chain through partnerships with third-party bridges—a process that can be complex and costly. Additionally, the rollup remains inactive until sufficient liquidity becomes available.