Two Years Since Launch – Has Arbitrum Crypto Proven Its Fraud-Proofs?

Arbitrum Mainnet Yet to See a Fraud-proof Attempt

Since its mainnet launch in August 2021, which featured a built-in security feature, Arbitrum has yet to receive a single fraud-proof submission, according to Ed Felten, co-founder and chief scientist of the Arbitrum-building Offchain Labs.

As a layer-2 of Ethereum, Arbitrum’s interactive, multi-round fraud proofs allow a layer-1 verifier contract to decide whether the challenger’s fraud-proof submission is valid. If it is, the fraudulent validator’s stake is slashed.

Fraud proofs are submitted when a validator suspects another validator of fraudulently or incorrectly assembling an incoming batch of transactions into the next crypto blockchain. However, no such attempts have been made on the Arbitrum mainnet, Felten told Cointelegraph at Korean Blockchain Week on Sept. 4.

Fraud-Proof Protocols on Arbitrum

Few attempts have been made to implement fraud-proof protocols on Arbitrum, as malicious-intended validators risk losing their entire stake if any one person disputes their claim. “There’s a stronger disincentive to try,” said Felten.

Currently, there is a permissioned set of validators — approximately 12 — participating in the fraud-proof game. To further secure the system, Arbitrum is rolling out a new iteration of the fraud proofs, called BOLD protocol (Bounded Liquidity Delay). Felten claims this protocol gives Arbitrum a faster guarantee for challenges.

On Aug. 4, Offchain Labs released Arbitrum’s BOLD protocol, which features a fraud proof feature that will soon be permissionless, allowing anyone to verify the correctness of the chain when challenges are made.

Felten explained that this is a major step forward in the world of crypto and blockchain, as it will enable web 3.0, also known as the chain link crypto, to become a reality.

He also added that the crypto harmony one and crypto game projects will benefit from this development, as it will allow for the secure use of crypto and blockchain technology in the near future.