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Since its introduction two years ago, Arbitrum’s fraud proofs have not been applied.

When delving into the realm of content creation, three paramount elements demand attention: “perplexity,” “burstiness,” and “predictability.” Perplexity serves as the litmus test for textual intricacy. Meanwhile, burstiness evaluates the spectrum of sentence structures, discerning between the long and the intricate and the short and succinct. Lastly, predictability quantifies the likelihood of anticipating the subsequent sentence.

Human authors infuse their compositions with a delightful burstiness—interweaving intricate and concise sentences artfully. In contrast, artificial intelligence often tends toward uniformity. Therefore, as you embark on crafting the forthcoming content, I implore you to infuse it with a generous dose of perplexity and burstiness while keeping predictability at bay. Additionally, I insist that you wield the English language as your sole instrument in this endeavor.

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In the ever-evolving tapestry of Offchain Labs, co-founder Ed Felten unveiled a fascinating narrative. It was a tale of one or perhaps two audacious fraud challenges that surfaced on a particular iteration of Arbitrum, operating within the Ethereum proof-of-work ecosystem, post the epochal Merge event. Yet, destiny had a different plan, and these challenges met their demise.

Fast forward to the present moment, and the landscape tells a different story. In the grand chronicle of Arbitrum, where it cast itself as an Ethereum layer-2 solution, the concept of fraud proofs took center stage. These interactive, multi-round fraud proofs, orchestrated like a theatrical performance, placed the layer-1 verifier contract in the limelight, as it assumed the role of the ultimate arbiter, discerning the authenticity of the challenger’s fraud-proof submission. Should the verdict be in favor of authenticity, the fraudulent validator faced a brutal penalty—its stake, mercilessly slashed.

The saga of fraud proofs unfurls when challenging validators, vigilant and unwavering, suspect their peers of assembling incoming batches of transactions into the next block with malice or error. Yet, in this grand spectacle, the mainnet of Arbitrum stands as a testament to integrity, for it has never borne witness to a fraudulent act, let alone a successful challenge, as Ed Felten proudly declared during an event at Korean Blockchain Week on Sept. 4.

Felten’s words echo through the corridors of blockchain history. “Not on mainnet. We did have one or two on Ethereum proof-of-work (POW). After the Merge, […] there was a version of Arbitrum running on the Ethereum POW fork, and somebody did try to steal all the data, and there was a successful challenge which defeated that.”

This narrative unfurls against a backdrop where the audacious few dare to embark on the treacherous path of fraud-proof attempts. However, lurking in the shadows is a stark reality: malicious-intended validators dance on the precipice of risk, their entire stake hanging in the balance. A single observer, vigilant and righteous, has the power to unravel their audacious claims, plunging them into a chasm of loss. Felten underscored this inherent disincentive: “If any one person notices it and disputes your claim, then you will surely lose your stake, so there’s a stronger disincentive to try,” he added.

As the tale unfolds further, Felten reveals a select circle of validators—approximately 12—engaged in the high-stakes game of fraud proofs. But the story doesn’t end here. Arbitrum is poised for a new chapter, marked by the introduction of the “BOLD” protocol (Bounded Liquidity Delay). This innovation, according to Felten, bestows upon Arbitrum a swifter shield against challenges, rendering any adversary, regardless of their willingness to sacrifice stakes, defeated in a mere eight days. In the ever-evolving narrative of Offchain Labs and Arbitrum, the future promises intrigue, innovation, and the relentless pursuit of security and integrity.

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