Fraud Proofs

Definition ∞ Fraud Proofs are cryptographic mechanisms used in certain blockchain scaling solutions, particularly optimistic rollups. They allow anyone to challenge a state transition proposed by a rollup operator by submitting proof of fraud. If the proof is valid, the incorrect state transition is reverted, and the challenger may be rewarded. This adversarial approach enhances security by enabling external verification of rollup operations.
Context ∞ Fraud proofs are a critical component of optimistic rollup security, and their implementation and effectiveness are subjects of continuous development and analysis. News often discusses the technical intricacies of deploying fraud proofs, the time delays associated with challenge periods, and the economic incentives for honest participation. Future advancements will likely focus on streamlining the fraud proof submission process and improving the efficiency of dispute resolution mechanisms.