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Optimistic Rollups

Cartesi implements a rollup design known as Optimistic Rollups.

The combination of an Optimistic Rollups framework and the Cartesi Machine Emulator enables the development of dApps using any package or library available for Linux.

What is a Blockchain Rollup?

A rollup is a blockchain scalability solution that offloads complex computations "off-chain," meaning they run on a separate computing environment (execution layer) outside the base layer, such as Ethereum.

When employing rollups, the blockchain receives and logs transactions. In rare instances of an active attack or the involvement of a malicious agent, parties may disagree with a computation’s outcomes, and the blockchain will resolve these disputes. However, it's important to note that disagreements are not expected to occur under normal circumstances.

Users interact with a rollup through transactions on the base layer. They send messages (inputs) to the rollup on-chain smart contracts to define a computation to be processed and, as such, advance the state of the computing environment on the execution layer. Interested parties run an off-chain component (a node on the execution layer) that watches the blockchain for inputs, understanding and executing the state updates.

Once in a while, the state is checkpointed on the chain, at which point it is considered finalized and can thus be accepted by any smart contract on the base layer.

Ensuring this operation is secure is vital, meaning that the execution layer node must somehow prove the new state to the base layer.

Consider this question: "How does Ethereum know that the data posted by an off-chain L2 node is valid and was not submitted maliciously?"

The answer depends on the rollup implementation, which falls within one of two categories according to the type of proof used:

  1. Zero-knowledge Rollups (ZK Rollups), which use validity proofs.

  2. Optimistic Rollups (ORs), which use fraud proofs.

Zero-knowledge Rollups (ZK Rollups)

In ZK rollups, which use validity proof schemes, every state update is accompanied by a cryptographic proof created off-chain, attesting to its validity. The update is only taken if the proof successfully passes verification on-chain. Validity proofs(ZK Rollups) bring the enormous benefit of instant finality—as soon as a state update appears on-chain, it can be fully trusted and acted upon.

The choice, however, also brings less than ideal properties: generating ZK proofs for general-purpose computations is, when possible, immensely expensive, and each on-chain state update must pay the extra gas fee for including and verifying a validity proof.

Optimistic Rollups (ORs)

Optimistic Rollups, which use fraud-proof schemes, work by a different paradigm. State updates come unaccompanied by proofs; they’re proposed and, if not challenged, confirmed on-chain. Challenging a state update proposal using fraud proofs has two categories: non-interactive and interactive.

Non-interactive refers to the fact that the challengers can prove that a state update is invalid in one step. With interactive fraud proofs, the claimer and challenger must, mediated by the blockchain, partake in something similar to a verification game.

The assumption that state updates will likely be honest often gives solutions like this the name of Optimistic Rollups.

This optimism is reinforced by financial incentives that reward honest behavior. Furthermore, any proposed false state will only be accepted if it remains undisputed for a prolonged period.

The main advantage of Optimistic Rollups is that they are much cheaper than ZK Rollups. Posting a state update on-chain is minimal, and challenging a state update is also low.

The main disadvantage is that state updates are not immediately final. It takes time for a state update to be fully accepted, and during this period, the state update is considered "optimistic" and can be challenged.

Cartesi Rollups

Cartesi's Optimistic Rollups adopt interactive fraud proofs to handle disputes.

The base layer isn't burdened with executing all computations, allowing for more extensive computational tasks.

Transactions and computations occur off-chain, leading to more intricate logic within transactions; hence, applications leverage powerful virtual machines (VMs) on the execution layer for complex computations.

Cartesi's architecture specializes in app-specific rollups(appchains). Each dApp has its dedicated rollup for off-chain computation, enhancing scalability and performance.

Introducing Dave — an interactive fraud-proof system

Dave is Cartesi's dispute resolution algorithm designed to address shortcomings in existing fraud-proof protocols. Traditional fraud-proof systems often face challenges such as delay attacks and vulnerability to Sybil attacks, where malicious nodes can disrupt operations by continuously challenging transactions or overwhelming honest validators.

Dave introduces an approach where the resources required to defend against disputes grow logarithmically with the number of opponents. This means that defending against challenges remains affordable for a single honest node, even in the face of multiple attackers.

With Dave, a single honest participant can effectively defend their claims on-chain, ensuring the integrity of transactions without relying on trust in validators. Based on the Permissionless Refereed Tournaments algorithm, this protocol empowers anyone to validate rollups and uphold correct states on-chain, enhancing transaction security and reliability.

In a way similar to how a consensus algorithm is crucial for achieving agreement on a single state of the blockchain among all nodes in a base layer chain, Dave plays a fundamental role in ensuring the integrity and trustworthiness of state transitions within Cartesi Rollups.

© 2024 Cartesi Foundation Ltd. All rights reserved.

The Cartesi Project is commissioned by the Cartesi Foundation.

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