An optimistic protocol processes transactions by assuming their validity unless challenged by a fraud proof. This type of scaling solution, often seen in optimistic rollups, executes transactions off-chain and posts only the compressed transaction data to the main blockchain. It includes a dispute period during which any participant can submit a fraud proof if they detect an invalid state transition. This design aims to significantly increase transaction throughput while relying on economic incentives to ensure correct execution.
Context
Optimistic protocols represent a prominent approach to scaling blockchain networks, particularly Ethereum, by offloading computational work from the main chain. The primary discussion involves the trade-off between higher transaction capacity and the delay introduced by the dispute resolution window. Continued advancements focus on reducing withdrawal times and enhancing the efficiency of fraud proof mechanisms to strengthen their viability.
Foundational research eliminates the inherent one-message latency price of threshold cryptography in BFT systems, enabling faster, provably secure on-chain randomness.
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