The rapid adoption of decentralized betting systems can bring to light some of the issues regarding (L1) layer one blockchains, especially the gas fees costing too much and taking too long to get confirmed. This can considerably ruin the experience for players engaging in live betting. An elegant solution for this has been developed using L2 Layer 2 rollups. These allow transactions to be aggregated, executed and compressed off-chain, before being uploaded in bulk to Ethereum or other layer one networks. By transferring most of the work to a secondary level known as rollups, the cost and wait time for each transaction is significantly reduced. This allows in-play wagering to become instant and affordable.
A Multi-Faceted Issue: The Gas Fees of Real-Time Wagering

Simultaneous betting on events like eSports, sports, or even games experiencing high-frequency action takes place in real time which is arguably one of the most critical elements for a competitive edge. On an overly busy Layer-1 network, bettors may find their transactions locked in the mempool and subject to competition over scarce block space. During peak sporting events, not only is the chance of capturing favorable odds put at risk, but gas prices tend to spike at the same time. A single smart-contract call, for example, may run in excess of several dollars or more. The diminished value that side-bets present in relation to their relative risk costs, diminishes interest in the micro-wagering market. In addition to this, the exhilaration that participation provides while live betting, takes a hit.
Everyone has heard of Layer 2 Rollups before, but it’s important to understand their definition before we proceed.
Rollups process and condense countless transactions outside a blockchain’s base layer into a single proof, which is submitted to the Layer 1 blockchain. Their most basic forms consist of: optimistic rollups, which assume transactions to be valid and provide a period of time for challenges, and ZK rollups, which create cryptographic proofs verifying transactions prior to execution. With both methods employed, data reduction on Layer 1 is profoundly greater which subsequently results in lower gas fees for each individual transaction. Rollups impose computation and storage off the main chain while maintaining the security promises of Ethereum; achieving higher transaction speeds and lower costs akin to centralized systems.
It’s simple to apply rollups to other use cases, like the live wagering segment of In-Play Betting Platforms, but developers working on sportsbook applications need to add Layer 2 solutions to their frontend and smart contract systems.
Bets can be placed immediately in this layer, where the majority of the time costs are only a fraction of a cent, as long as the supporting infrastructure permits users to directly deposit their ether, stablecoins, or ERC-20 tokens into the rollup.
When a betting event completes or hits a settlement milestone, a rollup operator processes all the result finalizations and payouts as a singular proof or as a batch transaction to be sent to Layer-1. At this stage, the cost is only a tiny fraction of what it would be on-chain, as the proof condenses thousands of transactions into a single summary. Bettors are able to withdraw their winnings by performing a single Layer-2 to Layer-1 exit transaction, further reaping the benefits of cost reduction in comparison to on-chain settlement.
Other Advantages: Enhanced Speed and Increased Scalability
Gas fee reduction is the most publicized feature of rollups, but the efficiencies also include shortened time for transaction finality and increased platform scalability. Within a rollup, confirmation times can reach seconds, rather than minutes which ensures that bets placed will be recorded almost instantaneously after they are clicked. This kind of responsiveness makes possible new types of in-play markets such as micro-bets on individual plays, statistical milestones, or dynamic prop wager shifts that simply weren’t doable under legacy fee structures.
Every aspect of a business is transformative in their own unique ways. Consider how a single sporting event can attract hundreds of thousands of wagers within a couple of minutes. When it comes to layer-1 systems, this form of transaction can result in node breakdowns and incur huge, unforeseen fees. Unlike layer-1 systems, rollups can manage transaction overloads by managing computations off-chain and periodically updating states on layer-1. This allows sportsbook operators to manage thousands of simultaneous users while keeping customer costs low.
Guaranteeing Security and Trust
The criticism surrounding layer-2 solutions often comes when pointing out security features. Regardless, many designs aim to preserve the primary security elements of the underlying blockchain. In the case of optimistic rollups, anyone can challenge false transactions that occur during a specific window and ZK rollups rely on precise validity proofs ensuring no state alteration can take place unless correctness is guaranteed. To enhance trust, many rollup protocols undergo intensive third-party audits, ongoing bug bounties, and transparency measures allowing everyone to validate the system’s strength at all times.
Operators: The Rollup Selection Strategies For Developers
Carefully evaluating the ecosystem for a rollup’s developers and its track record is essential for operators. Having statements like “gas fees” and “confirmation estimates” presented in simpler terms so that bettors won’t hesitate to place bets is also critical when designing interfaces that abstract ergonomics from the mechanics of rollups.
Rollups Are Only The Beginning: The Future Outlook

Live betting is only enabled through advances in DeFi and Web3, and their lower layer is rollups. Technologies that allow greater customization include Validium, which off-chain manages data availability, and modular rollup chaining, where multiple rollups specialize to interoperate. This will also lower costs. Rollup cross-bridges have additional advantages since they allow the sharing of liquidity across sports networks which can establish a global on-chain betting environment.
An even longer outlook includes rollups having zero-knowledge oracle network integration enabling sports data to be vetted in real time, devoid of centralized feeds. This enhances the streamlining of settlement processes and provable fairness. Compliant blockchain gaming regulations could combine with rollup-based sportsbooks that ensure low cost, real-time wagering with user privacy and transparent auditing for professional-grade reliability.
Taking advantage of Layer-2 rollups is not only a technical enhancement; it changes the entire delivery mechanism for in-play betting. Due to reduced gas fees and effortless scaling, rollup-powered sportsbooks will unlock new markets and live betting will literally roll out. The growth of adoption will only amplify the touted benefits of rollups, fostering an ecosystem that is more efficient and engaging for bettors around the globe.
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