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Optimism enables fault proof on mainnet, OP drops 55% in 3 months

by xyonent
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In a major milestone for Ethereum and Layer 2, Optimism, the Layer 2 scaling platform for the second most valuable network, announced the enablement of open source and permissionless fault proofing.

The platform manages more than $7 billion in assets. L2 BeatOptimism, like most optimistic rollups, had no way to trustlessly validate transactions; this functionality relied on a centralized sequencer and anti-fraud system.

Optimism TVL | Source: L2BEAT

Optimism fuels unreliable fraud prevention systems

Enabling an open-source fault-proof system is essential to building a more decentralized and secure future for the Optimism ecosystem. Overall, fault-proofs are a key component that allow users to verify the validity of all off-chain transactions.

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Most importantly, users will be able to dispute any fraudulent activity on Optimism, putting in place safeguards against, for example, unauthorized withdrawals.

In a post from Optimism Lab, Said Layer 2 platforms relied on a centralized system, where the Optimist Security Council had the authority to initiate withdrawals.

However, the platform removes this dependency by introducing trustless failure proofs, meaning any user can withdraw their tokens without the intervention of the council. This shift in power has big implications for the community and decentralization.

Nevertheless, to ensure the secure implementation of this fault-free system, the Optimism Security Council will retain the power to intervene, at least temporarily, in the event of a major failure. This decision means that Optimism will continue to operate securely, even as it becomes increasingly decentralized.

Eventually, the platform plans to release an open-source, modular “Multi-Proof Nirvana” that may also include zero-knowledge proofs, which would go beyond the current “Cannon” system.

Buterin’s thanks, but why does the OP crash?

Vitalik Buterin, co-founder of Ethereum, Admitted With this milestone, Optimism has joined the “Stage 1+ L2 club,” but the co-founders hoped that more zero-knowledge proof-based Layer 2 platforms would join the club.

Vitalik Buterin acknowledges milestone of optimism | Source: Vitalik Buterin via Warpcast
Vitalik Buterin acknowledges milestone of optimism | Source: Vitalik Buterin via Warpcast

Optimism is the second Layer 2 platform, after Arbitrum, to announce the release of a fault-proof system, although it is still in the testing phase. Arbitrum’s fraud prevention system is called Bounded Liquidity Delay (BOLD), Release It was launched on testnet early last month.

OP price trending down on daily chart | Source: OPUSDT on Binance, TradingView
OP price is trending down on daily chart | Source: OPUSDT on Binance and TradingView

Despite this milestone, OP remains strong but has come under pressure in the first half of June.

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At spot rates, OP is down about 55% from its March high. With Ethereum and Bitcoin prices falling, the token could sink below its May low of $1.8 and head towards $1.1.

Feature image from Canva, chart from TradingView

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