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Optimism reaches ‘Stage 1’ decentralization, implementing fault proofs

The team has implemented fault proofs on Optimism mainnet, and users can now independently initiate withdrawals “without involvement from any trusted third parties.”

Ethereum layer-2 Optimism has implemented fault proofs into its smart contracts, according to its development team, OP Labs. According to the team, Optimism has now reached “Stage 1” of decentralization, referring to a list of milestones articulated by Ethereum co-founder Vitalik Buterin.

At least four other OP Stack networks will implement the fault proofs “soon,” including Base, Metal, Mode, and Zora.

On Optimism, users can now initiate withdrawals of Ether (ETH) and ERC-20 tokens “without involvement from any trusted third parties,” OP Labs said in a post. In addition, if the team’s sequencer attempts to process invalid withdrawals, they can be “challenged and removed” by any user who submits a fault-proof showing that the withdrawal is invalid.

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Hack of a single multisig wallet could drain 12 Ethereum L2s of $121M

One wallet has upgrade permissions for 12 Ethereum scaling networks, but Conduit founder Andrew Huang says it can’t transact without three signatures which would take a trio of physical attacks.

A single multisignature crypto wallet has permissions from 12 different blockchain networks, implying that if this single wallet is ever compromised — all 12 networks could be drained of their funds with a potential $121 million in losses.

The networks include Zora, Aevo, Hypr, Orderly, Ancient8, Lyra, Mode, Pgn, Parallel and Metal — all created using the Conduit rollup creation software, according to data shared to X on May 19 by L2Beat researcher Luca Donno.

However, the wallet can’t transact without three of five signatures from the team, Conduit founder Andrew Huang told Cointelegraph. The private keys to these signatures are stored on hardware wallets, making a compromise only possible by “physically compromising 3/5 individuals,” he said.

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24-Year-Old Arrested for Alleged $4,600,000 Crypto Scam That Defrauded 300 People: Report