Optimism (OP) fault-proof system has been reverted to a centralized version after a bug was picked, necessitating a hard fork in early Sept.
Ethereum is a dynamic blockchain. From the age of the Homestead to the Merge, developers have been continuously innovating. After the last bull cycle in 2021, which lifted Ethereum to all-time highs, the network had to address congestion and prohibitive gas fees.
Though there are on-chain solutions like Sharding, developers, advocated by Vitalik Buterin, suggested first prioritizing off-chain means as an immediate relief.
This solution has proven helpful, helping drive gas fees to record lows as of mid-August 2024.
Through layer-2 solutions depending mostly on optimistic rollups, the platform can now help process transactions securely and, most importantly, cheaply. However, there is a problem: Leading optimistic rollup solutions for Ethereum are centralized in a way.
Then again, efforts have been made to address this by decentralizing the centralized sequencer and the fault-proof system.
Optimism Centralizes Fault-Proof System
This is what the OP Foundation did with the Optimism fault-proofs a while back.
Two months ago, the OP Foundation decentralized its sequencer, allowing tests and a team of auditors to comb through the code, checking for vulnerabilities.
Then, on August 16, the team said it would revert to a centralized fault-proof system, backpedaling due to what they claimed were critical vulnerabilities unearthed by the community-driven audit.
Out of caution and to prevent potential instability, the team decided to centralize their fault-proof system as they addressed these issues.
The reversion will be temporary and a dent in their effort of decentralizing.
12 Bugs Found in Optimism: What Does This Mean for OP
Overall, auditors found 12 vulnerabilities with different levels of severity, necessitating this unexpected action.
Of note, two severe issues were found. One was allocation overflow, where a memory management error in the fault-proof system could allow bad actors to take over the system’s virtual machine and execute code.
The second allowed attackers to manipulate the system. They could provide a tweaked version of valid outputs, effectively disrupting the dispute resolution process.
Three other issues were ranked as medium severity. For example, the auditors said that the PreimageOracle Error could cause the system to replace correct data with false data.
Meanwhile, another with an LPP Challenge Period issue made countering wrong claims insufficient, meaning the system could penalize honest users. Another issue around timing allowed the attacker to skip the waiting period and insert false data.
The seven other issues revolved around instruction implementation and memory verification.
The Granite Hard Fork: OP Price Tests 20DMA Resistance
To address these vulnerabilities, the foundation is lining up a hard fork, “Granite,” for September 10. Even so, it is important to note that the reset has not been formally audited.
However, the team said the change would be low-risk based on their internal security review.
(OPUSDT)
Following this change, OP, the native token, remains flat and in a bearish formation. After rallying to nearly $5 in March, the token has tumbled by almost 75% when writing.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
