The report discusses dispute resolution mechanisms in optimistic rollups, focusing on Arbitrum's new protocol called Bounded Liquidity Delay (BoLD). It contrasts centralized and decentralized systems, highlighting that decentralized systems depend on multiple entities for consensus, leading to potential disputes. BoLD is designed to counter attacks such as delay, economic, and censorship attacks while being permissionless.
The report outlines the dispute resolution process, which involves proposers posting assertions that challengers can contest during a challenge period. It compares Arbitrum's method to those of other optimistic rollups like Optimism, Cartesi, and Fuel, detailing their differing approaches to resolving disputes. Compliance with set timelines and financial stakes is emphasized as crucial to deter malicious activities.
The report concludes that all dispute resolution protocols are still under development, with ongoing research aimed at improving their resilience against various attack vectors.
