Fraud Proof

Within decentralized application (dApp) ecosystems that incorporate Optimistic Rollups (ORs), a fraud proof operates as a bonding mechanism. ORs are sidechains that aim to minimize fees and latency for dApps on a blockchain platform. To incentivize optimal performance, sequencers, who handle OR processing, must include a fraud proof as part of their work. Sequencers are financially rewarded for processing rollups in accordance with consensus rules, while also facing penalties such as forfeiting their fraud proof if they deviate from the rules.