In a notable development in the world of cryptocurrency, Optimism, a layer-2 scaling platform for Ethereum – the second most valuable network, has achieved an important benchmark. The platform has declared the initiation of an open source and permissionless fault proof system, signposting a significant progression for Ethereum and its layer-2s.
Though Optimism oversees more than $7 billion in assets per data from L2Beat, its verification process had yet to achieve full decentralization until now. Much like most optimistic rollups, Optimism could not independently verify its transactions. The platform previously relied heavily on a centralized sequencer and a fraud-proof system to carry out this function.
The newly established open-source fault-proof system marks a pivotal step towards solidifying a more decentralized and secure future for the Optimism ecosystem. Fault proofs serve as crucial elements that empower users to validate the accuracy of each coreset transaction.
In this new era, users have the ability to investigate and challenge any suspicious activity taking place on Optimism. This ability is of paramount importance, as it offers a protective shield against unauthorized withdrawals, among other potential fraudulent activities.
Previously, as stated by Optimism Labs, the layer-2 platform depended on a centralized system, wherein the Optimism Security Council enjoyed the authority to initiate withdrawals. With the introduction of a trustless fault-proof system, the platform can now give any user the power to withdraw tokens without the council’s intervention, a significant leap towards offering the true sense of a decentralized financial landscape.
Yet, transitioning to full decentralization is a phased process and to ensure secure implementation of fault-proof systems, the Optimism Security Council will retain their power temporarily. They can intervene during critical failures, a decision that would keep Optimism secure as they gradually move towards decentralization.
Optimism has also revealed its ambitious plans for a future-oriented fault-proof system, referred to as a “multi-proof nirvana.” This open-source and modular system could potentially incorporate zero-knowledge proofs, a feature beyond the existing “Cannon” system.
This major achievement garnered the attention of Ethereum’s own co-founder, Vitalik Buterin, who acknowledged and applauded Optimism for its latest accomplishment, welcoming the platform to the “club of stage 1+ L2s.” He expressed his desire for additional zero-knowledge proof-based layer-2 platforms to follow suit.
Optimism is the second platform on the layer-2 landscape after Arbitrum to announce the development of fault-proof systems, although testing work is still ongoing. The Arbitrum fraud-proof system, known as the “Bounded Liquidity Delay (BOLD),” was launched last month on Testnet.
Simultaneously, the introduction of the fault-proof system coincided with OP experiencing persistent pressure in the first half of June. At spot rates, OP saw a significant drop of about 55% from its March highs. With Ethereum and Bitcoin prices also under pressure, there are concerns that the token could dip below the May low of $1.8, possibly even reaching $1.1.
