What Is the “Data Availability Problem” in the Context of Layer 2 Solutions?
The data availability problem is the challenge of ensuring that all the data required to reconstruct the Layer 2 state (i.e. the raw transaction data) is published and accessible on the Layer 1 blockchain. This is critical because without the data, a node cannot verify the state or generate a fraud proof (in Optimistic Rollups), potentially allowing a malicious operator to steal funds.
Glossar
Availability
Latency ⎊ Availability, within cryptocurrency and derivatives, fundamentally concerns the speed at which a system can respond to requests, impacting order execution and arbitrage opportunities.
Data Availability Problem
Scalability ⎊ Data Availability Problem concerns the capacity of a blockchain network to maintain consistent state propagation as transaction volume increases, particularly relevant in Layer-2 solutions and optimistic rollups where data is posted off-chain.
Data Availability
Provenance ⎊ Data availability, particularly within cryptocurrency derivatives and options trading, hinges on establishing a verifiable and auditable lineage of information.