Fraud Proof

A fraud proof is a cryptographic method used in blockchain networks, especially in optimistic rollups, to detect and challenge invalid transactions or state changes. When a potentially fraudulent transaction is submitted, other participants can submit a fraud proof to prove the invalidity of that action within a specific time frame.

Why It Matters in Layer 2 Scaling

Fraud proofs are vital in Layer 2 solutions like Optimism and Arbitrum. These rollups assume transactions are valid by default but rely on fraud proofs to maintain security. If someone detects an invalid transaction, the proof can revert it, preserving the integrity of the network.

Supporting Trustless Systems

By enabling trustless verification without requiring every node to verify every transaction, fraud proofs support scalable and decentralized systems. They balance speed and security in Layer 2 chains while reducing computational load on the main blockchain.