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Optimistic Fraud Proof

Definition

An Optimistic Fraud Proof is a mechanism allowing network participants to challenge invalid state transitions in optimistic rollups. This security feature operates on the assumption that off-chain computations are correct, but permits a challenge period during which any observer can submit cryptographic proof of an incorrect state transition. If a valid fraud proof is presented, the invalid transaction is reverted, and the malicious operator is penalized. Such proofs ensure the integrity of aggregated off-chain transactions.