Title: Sustainability issues of Bitcoin layer-2 rollups
Introduction: A recent report from Galaxy Research has raised alarms about the long-term viability of Bitcoin layer-2 scaling solutions, particularly “rollups”. Despite their current acclaim as a method to maintain Bitcoin transactions that are affordable, speedy, and decentralized, the report underscores significant sustainability challenges.

Released on August 2, the analysis by Gabe Parker of Galaxy Research identifies the high cost of data posting to the Bitcoin base layer as a central issue for rollups. For these layer-2 networks to remain viable, they must generate significant revenue from transaction fees, relying on a large user base willing to pay for their transactions.

The report highlights a crucial bottleneck for layer-2 rollups: the high cost of data posting to the Bitcoin base layer. This could limit the scalability and sustainability of these solutions, even if they offer faster and cheaper transactions.