How Do “Fraud Proofs” Work in Optimistic Rollups?
Fraud Proofs are a mechanism used by Optimistic Rollups to ensure correct execution. When a batch of transactions is posted to Layer 1, it is assumed valid.
A challenge window is provided where anyone can submit a "fraud proof" if they detect an incorrect state transition. If the proof is successful, the incorrect batch is reverted, and the malicious operator is penalized.
Glossar
Optimistic Rollups
Rollup ⎊ Optimistic rollups represent a Layer-2 scaling solution for blockchains, primarily Ethereum, designed to enhance transaction throughput while inheriting the security of the underlying Layer-1.
Fraud
Manipulation ⎊ Fraud in cryptocurrency markets often involves deceptive manipulation tactics designed to artificially inflate or deflate asset prices for personal gain.
Challenge Window
Mechanism ⎊ The Challenge Window defines a specific, predetermined time frame following the submission of a Layer 2 state root to the Layer 1 blockchain, typically in an Optimistic Rollup architecture.