Arbitrum Deploys BoLD Authentication Mechanism Mainnet – Enhancing Decentralization and Security

On February 12, 2025, Arbitrum officially launched Bounded Liquidity Delay (BoLD) – a new, permissionless authentication mechanism that allows anyone to participate in monitoring the network state. This is an important step towards increasing the security and decentralization of the Layer-2 ecosystem on Ethereum.

Arbitrum and BoLD Authentication Mechanism

Arbitrum is a Layer-2 solution based on the Optimistic Rollup model , which increases Ethereum's scalability by processing transactions off-chain and only writing aggregated data to the Ethereum mainnet. This reduces congestion and transaction costs while ensuring security.

The BoLD protocol upgrades Arbitrum's fraud-proof mechanism by introducing a fixed-time dispute resolution system . Accordingly, all disputes will be resolved within approximately 12 days on the Arbitrum chains.

The core of BoLD is to allow anyone to participate in validating and challenging suspicious transactions . Previously, the system only allowed a select number of validators to participate in securing the network, but BoLD replaces this mechanism with an open model , making the network more decentralized .

Offchain Labs said that although Optimistic Rollup has a security mechanism that uses a 7-day challenge period to conduct fraud-proofing, the network can still be subject to DDoS attacks , causing withdrawals and status confirmations to be delayed indefinitely . Therefore, the validation process previously required strict control, causing a limit on decentralization .

BoLD is not only a technical innovation, but also has a significant impact on Arbitrum's entire operating model:

• Permissionless Authentication : Any third party can participate in the monitoring process, ensuring absolute transparency.

• Mitigating Attack Risk : This mechanism helps to limit attacks from malicious validators.

• Cost & Performance Optimization : The system operates more efficiently without increasing transaction load.

• Increased decentralization : Eliminates dependence on a small number of validators, increasing community trust.

The implementation of BoLD is important in the context of Layer-2 becoming the optimal solution for scaling Ethereum:

• Safer DeFi : Decentralized finance protocols will have an additional layer of strong protection.

• Higher Scalability : BoLD helps the Arbitrum network process transactions quickly while still ensuring security.

• Attract more developers : With a transparent authentication mechanism, Arbitrum can become the top choice for Web3 projects.