Optimism’s permissionless fault-proof system is now on OP Sepolia

Fault proofs are a critical security measure to ensure transactions are valid on optimistic rollups

article-image

CryptoFX/Shutterstock modified by Blockworks

share

OP Stack’s latest fault-proof system has landed on OP Sepolia, the final testing sphere before mainnet.

Fault proofs, otherwise known as fraud proofs, are used to determine the legitimacy of a transaction on an optimistic rollup before it is recorded in the state of the base blockchain layer.

Unlike zero-knowledge rollups, where a transaction is instantly proven to be accurate or inaccurate, optimistic rollups are optimistic by nature, and they assume all transactions are valid unless proven otherwise.

Read more: Rollups saved Ethereum users a boatload of gas fees: Report

To ensure that the chain remains safe, optimistic rollups provide a time window where anyone can dispute the state of transactions. This tool is critical in ensuring the security of a network and acts as an important measure to prevent false activities on the blockchain. 

Loading Tweet..

Currently, Optimism does not have a fault-proof system. Rather, it relies on a seven-day challenge window, during which the system can be upgraded if fraudulent activities are detected. This upgrade system is managed by a 2-of-2 nested multisig that is governed by the Optimism Security Council (made up of a  4-of-13 multisig) and the Optimism Foundation (which has a 5 of 7 multisig).

Optimism first revealed its permissionless fault-proof system in October last year. It launched a three-component system that included a fault-proof program (FFP),  a fault-proof virtual machine (FPVM) and a dispute game protocol on the OP Goerli testnet.

Read more: Optimism devs tackle bad actors with fault-proof system testnet launch

“Since Fault Proofs launched on OP Goerli in September, iteration on the system has primarily focused on the addition of output bisection (the first layer that narrows the dispute down to a single block transition prior to executing the fault proof virtual machine or FPVM), the large preimage proposals and incentive compatibility,” an OP Labs spokesperson told Blockworks.

The spokesperson noted that the OP Labs’ engineering team had been focused on getting the bond incentives accurate so that under normal operation, the honest challenger always received an incentive for countering invalid claims. 

“This is a crucial part of the “permissionless” part of the system, and the testing phase on OP Sepolia was very helpful in tuning this portion of the system,” they said.

This latest testnet launch on OP Sepolia introduces permissionless validation and will allow anyone to participate in the system without an allowlist, the spokesperson added.

“This means that withdrawals of ETH and ERC-20 tokens from OP Stack Chains can be initiated without involvement from any trusted third party. It also means that invalid withdrawals can be challenged and removed by any user that wants to participate in the protocol,” they said.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (8).png

Research

Meta-aggregators like Titan and Kamino Swap improve price execution for users, making the Solana swapping landscape more competitive. Jupiter has incorporated meta-aggregation features into its latest routing engine to keep users on its front end (own the user, own the flow). At large, teams are treating swaps as a commoditized complement, offering incredibly cheap or free swaps to own the end-user and increase demand for high-margin product offerings (multi-product DeFi). On another note, the divergence in the concentration of aggregator volume between DEXs suggests increased specialization at the DEX layer by asset type.

article-image

Onboarding the world to Bitcoin takes a series of firsts

article-image

If we get an altcoin season, it’ll be focused on tokens deemed “ fundamentally valuable enough for traditional public money and capital” to get involved with

article-image

Solana dropped nearly 10% amid mass crypto liquidations triggered by rising geopolitical strife

article-image

Investors moved to safe assets like the US dollar and gold, but bonds faltered

article-image

The Amex offers up to 4% bitcoin back, but the deal is a bit ironic considering crypto’s goals

article-image

Short answer: Subnets are now cheaper to bootstrap than a Celestia rollup