How does Arbitrum prevent fraud? A simple explanation 🧐

I’m sure you’ve heard of Arbitrum by now, the scaling solution for Ethereum that uses optimistic rollups. But you may be wondering, how does Arbitrum prevent fraud? How can it guarantee that the transactions on the Arbitrum network are valid and consistent with the Ethereum mainnet? Well, let me try to explain it in a simple way. Arbitrum uses a system of validators, sequencer, and arbitrator to ensure the security and correctness of the Arbitrum network. The validators are nodes that run the Arbitrum software and monitor the network. The sequencer is a special validator that collects and orders transactions from users and posts them to the Ethereum mainnet in batches. The arbitrator is a smart contract on the Ethereum mainnet that acts as the ultimate judge of the Arbitrum network. The arbitrator can confirm or reject the batches posted by the sequencer, based on the evidence provided by the validators. The validators process the transactions on the Arbitrum network and post assertions to the arbitrator, which are summaries of the new state of the network. The assertions are checked by the arbitrator, and if they are correct, they are confirmed. If they are incorrect, they are rejected, and a fraud proof is required. A fraud proof is a proof that shows where and how an assertion is wrong. Any validator can submit a fraud proof to the arbitrator, and if it is valid, the fraudster will be penalized and the network will be corrected. This way, Arbitrum ensures that any fraud attempt will be detected and punished, and that the Arbitrum network will always be in sync with the Ethereum mainnet #Arbitrum #Ethereum #Security #FraudProofs