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.
Context ∞ Optimistic fraud proofs are a cornerstone of optimistic rollup technology, providing a scalable solution for increasing transaction throughput on mainnet blockchains. The length of the challenge window and the efficiency of the proof verification process are key areas of development and debate in the rollup ecosystem. News often highlights successful fraud proof implementations or discussions around their practical security implications.