Enhancing blockchain scalability and security: the early fraud detection (EFD) framework for optimistic rollups

Blockchain is an emerging technology that improves efficiency, transparency, and security in applications such as fintech, smart cities, healthcare, etc. However, blockchain technology faces scalability issues as the volume of transactions grows. One solution to enhance the scalability is offloading transactions outside the main blockchain layer using the Optimistic Rollup. In this context, we propose the Early Fraud Detection (EFD) framework that utilizes Optimistic Rollups and incorporates early fraud proofs by applying Bloom–Merkle trees that aim to reduce the challenger’s verification time and cost. The EFD framework has been tested using the Ethereum Mainnet Test Network and developed with Solidity. It demonstrates that the proposed EFD framework reduces the total cost to users by 25%. Moreover, it is robust against security threats, including Double Spending, Sybil, and Denial-of-Service (DOS) attacks.