# Fuel v2 — An Eth(OS) aligned rollup. 

By [BeyondDeFI](https://paragraph.com/@beyonddefi) · 2024-10-24

evm, optimistic, fuel, blockchain

---

**The why?**

To solve Ethereum’s scalability issues various solutions like zkEVM, Optimistic roll-ups (Optimism, Arbitrum) have popped up. But, in Fuel’s view all of them come with some sort of compromise often execution or security.

**The how?**

In 2020, Fuel v1 was built; first optimistic rollup on mainnet. They didn’t try to copy Ethereum’s EVM, instead opted for a simple UTXO (Unspent Txn Output) making it easier to compute fraud proofs. No sequencers or complex re-execution. Fuel v1 was referred to as the first and only ‘Pure State Machine’

Now, they look to build a Rollup OS w/ Fuel v2. They aim to solve 4 crucial bottlenecks:

1\. Asset Handling:

Native protocol-level asset support, Tokens are contract based on Optimistic Rollups. In Fuel v2, asset operation is in-built happens at a protocol level — so no smart contract bs.

2\. Security Model:

Assets inherit the security features at a protocol level by default. Whereas, Optimistic rollups are mainly at a contract-level. So, no reliance on third party auditors or fear of re-entrancy attacks.

This is because of UTXO which means all the state changes are atomic.

![Image](https://storage.googleapis.com/papyrus_images/29d6c3634f69170cb9cc9832efa4a21d.png)

3\. Scalability Architecture: Fuel V2:

Bottleneck in Optimistic rollup system is that all the execution is Sequencer/Sequential. Hence allowing one txn at once. Fuel v2 is enables parallelization — simultaneous txn processing. Whilst inheriting UTXO model for proofs from v1.

4\. Future Adaptability:

It’s built with a flexible architecture that can easily incorporate future advances in EVM. Its purpose-built FuelVM, UTXO model, and modular components can be independently upgraded to support new features like ZK-proofs, improved consensus mechanisms, or novel data availability solutions.

This flexibility means devs won't need to significantly refactor their dapps whenever a new innovation pops up.

---

*Originally published on [BeyondDeFI](https://paragraph.com/@beyonddefi/fuel-v2)*