Why Fraud Proofs are the future? Insights from Cartesi

🔺 Let’s start with the blockchain trilemma - we can’t scale Ethereum without sacrificing security or decentralization. It's a balancing act, but fraud proofs offer a unique solution.

💻 Why Fraud Proofs matter? While ZK proofs are often seen as the endgame, they come with trade-offs. For cost and throughput, ZK has some disadvantages compared to fraud proofs. So fraud proofs still have a very important niche for rollups.

👷 How Fraud Proofs work? For simplicity, let's say there are two players, the validators and the blockchain. These validators agree on a state transition function, similar to a CPU instruction, and an initial state. They apply the state transition repeatedly to reach the final result, which they then prove to the blockchain.

If both validators agree on the result, the blockchain accepts it. If they disagree, a dispute is initiated to identify the liar.

📈 Future of Fraud Proofs: while current systems like Cartesi, Arbitrum, and Optimism are state-of-the-art, there's room for growth. Cartesi continues to innovate, aiming to perfect its balance of security, decentralization, and liveness.