Arbitrum Implements BOLD Verification Mechanism on Testnet

Offchain Labs, the development unit behind Arbitrum, has recently announced the deployment of a new solution named BOLD aimed at reducing transaction verification latency and enhancing security measures.

Arbitrum deploys new BOLD verification mechanism on testnet

BOLD stands for Bounded Liquidity Delay, a new verification mechanism developed by Offchain Labs to address fraud issues from validators on layer-2 rollup networks.

In a broader context, Arbitrum and other layer-2 solutions have faced challenges where validators intentionally delay verification, slowing down data transfer to layer-1 and increasing transaction costs. Some validators have even colluded or paid to disrupt network verification processes, known as denial-of-service attacks.

• Learn more: What are the stages of Layer-2?

With BOLD, Offchain Labs aims to introduce a permissionless solution where users can operate verification nodes, allowing any node to raise disputes, unlike before when only select validators could do so. This approach promotes network decentralization and inclusivity.

Additionally, BOLD imposes a 7-day time limit for verification to prevent malicious activities from validators with ill intent.

"We have devised a new approach to verification, with a 7-day delay limit and robust defenses against attacks. The BOLD protocol can make verification on Arbitrum safer and permissionless, advancing its decentralized ladder." - Offchain Labs on BOLD.

Thus, BOLD can be summarized by its three main improvements:

Reducing data transfer latency to Ethereum;
Preventing malicious validators from increasing transaction fees;
Enhancing security for the Arbitrum network.

Offchain Labs first introduced BOLD in August 2023. During this testnet deployment phase, rigorous evaluations and adjustments will be proposed to the DAO. Subsequently, BOLD is scheduled for deployment on Arbitrum Sepolia by late spring 2024, followed by Arbitrum One and Nova by summer 2024.