Basic Concepts

What is a Rollup?

A Rollup is a Layer 2 (L2) scaling solution that improves throughput and reduces transaction costs by batch-processing transactions and submitting data to Layer 1 (L1) (e.g., Ethereum).

Core Mechanism of Rollups:

1. Batch Processing: Multiple transactions are combined into a single batch, reducing the processing load on L1.

2. Data Submission: Only essential data is submitted to L1, enhancing security.

3. Fraud or Validity Proofs: Ensures the trustworthiness of Rollup data.

Types of Rollups:

Optimistic Rollups (e.g., Optimism, Arbitrum): Assume transactions are valid by default, with a challenge mechanism for fraud detection.

ZK-Rollups (e.g., StarkNet, zkSync): Use zero-knowledge proofs to verify transactions without requiring a challenge mechanism.

Rollups enhance transaction speed by reducing L1 computational load while maintaining L1 security, making them a leading Ethereum scaling solution.

Source: https://www.optimism.io/

What is Conduit

Conduit: An Infrastructure Platform for Simplified Rollup Deployment

Ethereum is the foundation for numerous decentralized applications (dApps) but has long struggled with scalability and high transaction fees. As a Layer 2 solution, Rollups enhance throughput and reduce costs, making them a key breakthrough. However, deploying and managing a Rollup typically requires deep technical expertise and significant development costs, posing a challenge for many project teams.

Conduit offers Rollup-as-a-Service (RaaS) to simplify and streamline L2/L3 deployment. It enables anyone to launch a production-grade Rollup or application chain (Appchain) within minutes, without writing complex code. The platform supports leading Rollup frameworks such as Optimism’s OP Stack and Arbitrum’s Orbit while ensuring compatibility with networks like Ethereum, Base, Zora, and Mode.

Conduit’s core value lies in its plug-and-play service model. Developers simply log into the platform, select the desired Rollup framework, settlement layer, and data availability layer, and complete deployment in as little as 15 minutes. This process is fast and cost-effective—testnet plans start at just $50 per month, while mainnet plans are priced at $3,000. This model provides robust infrastructure support for high-performance blockchain projects across DeFi, NFTs, and consumer applications.

Source: https://www.conduit.xyz/

Team Background

Conduit’s founder, Andrew Huang, graduated from the Massachusetts Institute of Technology (MIT). Before founding Conduit, Andrew worked at X, Pinterest, Wish, and Quill, focusing on scaling infrastructure and system architecture for high-growth platforms.

He also served as an entrepreneur-in-residence at Paradigm, a well-known crypto investment fund that has backed projects such as Uniswap, Coinbase, Flashbots, Lido, and Optimism. Notably, Andrew is the brother of Paradigm co-founder Matt Huang.

Source: https://www.rootdata.com/member/Andrew%20Huang?k=MTQ1ODg%3D

Funding Information

Conduit has raised a total of $44 million, including a $7 million seed round in March 2023 led by Paradigm and a $37 million Series A round in June 2024 led by Paradigm and Haun Ventures.

The Series A round included participation from 18 investors, with the funds allocated toward product development, expanding the Ethereum ecosystem, and making it easier for developers to deploy and scale Rollups.

Source: https://www.rootdata.com/Projects/detail/Conduit?k=NzQzNQ%3D%3D

Product

Whether for DeFi protocols, gaming applications, or NFT platforms, Conduit provides a one-stop Rollup solution to help developers quickly build and scale their applications.

Conduit Marketplace offers a centralized platform for tool procurement and integration, partnering with 48 companies. Developers can filter, purchase, and seamlessly integrate the necessary tools by category, significantly reducing development time, lowering costs, and solving complex system integration challenges.

Features:

Rapid Deployment: Intuitive UI and pre-built infrastructure enable Rollup launches in minutes.

Customizable Tech Stack: Flexible configurations to meet various business needs.

High-Availability Sequencer: Ensures smooth transaction execution and enhances network stability.

Auto-Scaling RPC: Supports high-concurrency access for an optimal user experience.

Built-in Block Explorer & Faucet: Conveniently query block information and receive test funds.

Native App & Tool Integration: Seamless connection to ecosystem resources to improve development efficiency.

Feature-Rich Control Panel: Intuitive Rollup management for easy debugging and optimization.

Managed Infrastructure: Security monitoring, automatic upgrades, and maintenance ensure long-term network stability.

Advanced Monitoring System: Real-time tracking of key metrics to maintain Rollup health.

Source: https://www.conduit.xyz/ecosystems

Advantages

Save 3–6 months of development time, allowing teams to focus on core business and accelerate product iteration.

One-click app integration for fast deployment without leaving the Conduit platform.

Exclusive discounts on select tools to reduce Rollup operating costs.

How It Works:

Deploying a Rollup with Conduit follows a four-step process:

Choose a Rollup Framework: Select the appropriate framework, such as Optimism or Arbitrum, based on project needs.

Customize the Rollup: Configure key parameters, including supported assets and gas fees.

One-Click Deployment: Launch a dedicated Rollup effortlessly through Conduit’s user interface, without complex technical operations.

Efficient Management: Use the Conduit dashboard to monitor performance in real time, manage upgrades, and maintain infrastructure.

Source: app.conduit.xyz

Pricing:

API Billing: Charged based on computation units (CU), with transparent pricing. The free plan includes 400M CU/month, while the professional plan offers 1B CU/month, suitable for high-load applications.

Rollup Deployment:

Testnet: Starting at $50/month (400M CU).

Mainnet: Starting at $3000/month + 7.5% sequencer profit (1B CU).

Node Plans: Free plan includes up to 400M CU; professional plan is priced at $50/month.

Source: https://www.conduit.xyz/pricing/rollups

Technical Highlights: G2 Sequencer

Conduit G2 is a high-performance sequencer within the OP Stack and Arbitrum Orbit ecosystems, designed to provide ultra-high throughput and low latency for Ethereum-compatible applications.

Processes 100 Mgas per second—10 times faster than traditional sequencers.

Supports thousands of ETH transfers, ERC-20 transactions, and NFT minting, ensuring smooth operation for large-scale on-chain applications.

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Real-World Application Validation:

Pirate Nation (Proof of Play): Supports 10,000+ concurrent players, stably processing 30-40 Mgas/s.

Gravity Chain (Galxe): Serves 28.9 million users with latency as low as 50ms.

Whether for gaming, DeFi, or large-scale Web3 communities, G2 ensures fast and stable on-chain operations, empowering the next generation of Rollups.

Source: https://www.conduit.xyz/g2-sequencer

Ecosystem

Conduit has established partnerships with leading ecosystems such as Optimism’s Superchain and Arbitrum’s Orbit, supporting over 300 testnet and mainnet chains, with a total value locked (TVL) exceeding $1.2 billion. The platform also integrates dedicated RPC nodes, auto-scaling capabilities, and usage-tracking tools to ensure the stable operation of Rollups.

Source: https://www.conduit.xyz/customers

Case Studies:

Conduit: Infrastructure Supporting Key Blockchain Applications

Conduit provides flexible, high-performance infrastructure to help developers efficiently deploy and scale applications. Below are the core use cases of Conduit in the blockchain ecosystem:

Custom L2/L3 Rollups: Projects can easily deploy custom Layer 2 and Layer 3 Rollups, creating high-scalability, secure blockchain environments on Ethereum-compatible networks while reducing technical complexity.

Decentralized Exchanges (DEX): Aevo and Lyra leverage Conduit to provide CEX-level matching speeds, helping DeFi transaction volumes break into billions of dollars.

Web3 Social: Friend.tech and Degen Chain use Conduit to merge Web2 experiences, making crypto social interactions more intuitive and user-friendly.

DeFi Ecosystem: Mode utilizes Conduit to provide high-throughput support, ensuring stable dApp performance during high-concurrency scenarios like airdrops.

On-Chain Settlement: Orderly Network builds a high-performance settlement layer based on Conduit, exploring new on-chain settlement models.

NFT Ecosystem: Zora uses Conduit to reduce minting costs and optimize the NFT issuance process, making it easier for creators to monetize.

Conduit empowers blockchain projects, accelerates innovation, and allows developers to focus on building more impactful applications.

Source: https://www.conduit.xyz/customers

Competitors

Conduit is the most mature option if the user’s goal is to deploy an Optimism ecosystem Rollup.

If multi-chain Rollup compatibility is needed, AltLayer and Caldera are more suitable.
For low-code, automated deployment, Stackr might be a better choice.
If high security with ZK-Rollups is the priority, Sovereign Labs offers stronger privacy protection capabilities.

Risks

1. Centralization Risk
   As a Rollup-as-a-Service (RaaS) platform, Conduit lowers the technical barrier for Rollup deployment, but its core infrastructure relies on its services, potentially creating centralization risks.
   For example, the Degen Chain incident highlighted that Conduit controls key Rollup data and keys, which could affect project migration or operation.

2. Technical Stability and Service Interruptions
   Relying on Conduit could increase the risk of single points of failure, especially in high concurrency or sensitive business scenarios (such as DeFi and NFT issuance).
   For example, Degen Chain experienced a 54-hour downtime due to an unannounced upgrade by Conduit, resulting in a $160,000 loss.

3. Compliance and Regulatory Risks
   As a third-party Rollup solution provider, Conduit’s compliance may be subject to regulatory oversight in various jurisdictions, particularly for L2 projects involved in financial transactions.

4. Pricing and Cost Control
   While Conduit claims to reduce Rollup deployment costs, its mainnet plan starts at $3,000 per month, with an additional 7.5% fee on sequencer profits, making long-term use potentially costly, which could impact the economic feasibility of projects.

5. Competitive Pressure
   Arbitrum Orbit, Optimism Superchain, and other Rollup solutions (such as zkSync, StarkNet) offer similar services, and the increasing competition could impact Conduit’s market position and long-term growth ability.
   Conduit offers convenient Rollup deployment through RaaS, but its centralization control, technical stability, compliance, cost, and competitive pressure are risks to consider. For projects depending on Conduit, it’s important to weigh decentralization, migration capability, and long-term costs to avoid the potential issues related to single-point dependency.

Source: www.theblock.co

Future Outlook

Since its launch, Conduit has quickly become a leader in Rollup infrastructure. The platform has simplified Rollup deployment and enhanced Ethereum’s on-chain computing capacity by 20 times through partnerships with major ecosystems like Optimism and Arbitrum. Conduit’s success has also been recognized by the capital markets, raising $37 million in its Series A funding round.

However, Conduit’s growth has sparked some discussions. Some observers are concerned that the convenience of Rollup deployment may lead to an influx of low-quality projects, potentially resulting in a phenomenon where “every altcoin has its own Rollup.” Additionally, operational challenges could arise if users fail to pay their monthly fees on time or request service cancellations.

Nevertheless, Conduit has undoubtedly provided blockchain developers with powerful tools, lowering the barrier to entry for Layer 2 and Layer 3 ecosystems. As Ethereum co-founder Vitalik Buterin has stated, Layer 3 can offer users “customized features,” and Conduit’s platform embodies this vision.

Conclusion

Conduit, with its innovative Rollups-as-a-Service model, offers blockchain developers an efficient, flexible, and cost-effective Rollup deployment platform, covering DeFi, NFT, and consumer applications, helping project teams implement solutions from testing to production.

As blockchain technology continues to evolve, Conduit’s infrastructure is expected to drive the expansion of the Ethereum ecosystem further, supporting more innovative applications.

However, the “Rollup as a Service” model has centralization risks. When a third party controls critical infrastructure, projects may face the risks of data loss, service interruptions, or migration obstacles. The construction of a decentralized ecosystem must still adhere to the core principle: “Not your keys, not your blockchain.”