02
Fraud Proofs and Dispute Resolution
Because the OVM operates optimistically, it assumes
transactions are valid unless challenged.
Fraud Proofs: If someone detects an invalid transaction,
they can submit a fraud proof. This initiates a process
where the questionable transaction is re-evaluated on
layer-1 to determine its validity.
Challenge Period (~ 7 days): There’s a predefined
challenge period where anyone can contest a transaction.
If no one disputes it within this time, it’s considered valid
and finalized.