In the high stakes arena of blockchain technology, maintaining security and preventing fraudulent activity are paramount. This is where protocols like Arbitrum‘s fraud proofs come into play. Now, a fascinating revelation is causing ripples across the crypto community. Since its launch two years ago, Arbitrum’s fraud proofs have yet to be used, according to Ed Felten, co-founder and chief scientist of Offchain Labs, the company that developed Arbitrum.
One might wonder why this is the case. Felten explains that Arbitrum’s interactive, multi-round fraud proofs function by empowering a layer-1 verifier contract to validate whether the challenger’s fraud-proof submission is legitimate. If so, the dishonest validator’s stake is slashed. It’s a practical yet formidable security feature that deters fraudsters with the looming threat of substantial losses.
However, there is a catch that seems to be contributing to the non-utilization of the protocol: the risk to validators. Arbitrum’s mainnet has not yet encountered any fraudulent instances that would lead to the activation of these fraud proofs. This might be attributed to the fact that rogue validators would risk losing their entire stake if a single observer identifies and disputes their dubious claims. If anything, it’s a testament to the deterring power of the system.
Adding to the narrative, there are currently 12 validators, forming a provisional group involved in the fraud-proof process. Moreover, Felten gave a sneak peek into the upcoming iteration of the fraud proof platform, the “BOLD” protocol which promises to expedite challenge procedures. It’s designed to quell adversaries who willingly forsake multiple stakes to cause delays. Under the BOLD protocol, regardless of the stakes they’re willing to sacrifice, culprits will be defeated in approximately eight days.
Arbitrum’s fraud proof platform is poised to go permissionless, enabling anyone to participate in ensuring the accuracy of the chain, thereby contributing to the broader efforts in cryptocurrency security. But, with no actual use after two years, will the permissionless future bring a paradigm shift, or will this significant feature continue to go unused?
Meanwhile, Coinbase shared pertinent news contradicting a narrative circulating about its supposed termination of services for all its Indian users. Although a degree of vagueness hangs over the detail, the exchange has stressed that services are indeed continuing. Yet, they admit that access for retail accounts that no longer meet their updated standards will be disabled, and users will be prompted to download their wallet application.
In the constantly evolving environment of blockchain technology and cryptocurrency, maintaining security and trust is a high-stakes game. Every development, every revelation, every hint of change is another piece of the evolving puzzle. As players like Arbitrum and Coinbase continue to innovate, they contribute to shaping the future of crypto markets as they oscillate between lofty optimism and grounded skepticism.
Source: Cointelegraph
