What are the potential drawbacks or limitations of implementing optimistic rollup in cryptocurrency projects?

3 answers

• Feb 18, 2022 · 3 years ago
  One potential drawback of implementing optimistic rollup in cryptocurrency projects is the reliance on a centralized operator. While optimistic rollup offers scalability benefits, it requires a trusted entity to validate transactions and submit proofs to the main chain. This introduces a single point of failure and raises concerns about censorship and manipulation. However, efforts are being made to explore decentralized alternatives to mitigate this limitation.
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• Feb 18, 2022 · 3 years ago
  Another limitation of optimistic rollup is the challenge of handling fraud proofs. In the event of a malicious transaction, users need to submit fraud proofs to the main chain to trigger a dispute resolution process. This process can be time-consuming and may result in delays or additional costs for users. Improving the efficiency and user experience of fraud proofs is an ongoing area of research and development in the optimistic rollup space.
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• Feb 18, 2022 · 3 years ago
  As a representative of BYDFi, I can say that one limitation of implementing optimistic rollup in cryptocurrency projects is the need for users to wait for the finalization of transactions. Optimistic rollup relies on a period of time called the challenge period, during which users can submit fraud proofs. This period introduces a delay before transactions are considered final, which may not be ideal for certain use cases that require instant settlement. However, the benefits of scalability and reduced fees offered by optimistic rollup often outweigh this limitation for many projects.
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