Definition ∞ A fraud proof is a mechanism that allows someone to show that a transaction or block on a blockchain scaling solution is incorrect. In the context of blockchain scaling solutions, particularly optimistic rollups, a fraud proof is a cryptographic challenge submitted by an observer to demonstrate that a state transition proposed by an aggregator is invalid. If the proof is successful, the fraudulent transaction is reverted, and the malicious party is penalized, often by slashing their staked collateral. This mechanism provides a security guarantee without requiring every network participant to re-execute all transactions.
Context ∞ Fraud proofs are a critical security feature for optimistic rollups, which are widely reported in crypto news as a means to scale Ethereum and other blockchains. Discussions frequently focus on the challenge period during which fraud proofs can be submitted, balancing security with transaction finality. Ongoing research aims to optimize these proofs for efficiency and robustness, further enhancing the security of layer-2 scaling solutions.
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