In mid-July, Base, Coinbase's Layer 2 network, is set to introduce a significant advancement on its Sepolia testnet - the implementation of fault proofs. This crucial development marks a significant milestone in Base's journey towards decentralization and enhanced network security.

Fault Proofs: Empowering the Network

Fault proofs are a crucial step towards decentralizing Layer 2 (L2) networks. The upcoming change on the Sepolia testnet will allow anyone to propose and challenge claims about the L2's state, reducing reliance on central authorities. This shift will make the network more open and secure, as the integrity of transactions will be better ensured.

Withdrawal Process Transformation

The introduction of fault proofs will significantly alter the withdrawal process on the testnet. Instead of being instant, withdrawals will now take at least seven days to complete. This longer timeframe is necessary for the new proving and finalizing process. The system will also switch from using the "L2OutputOracle" to the "DisputeGameFactory" for proposing output root claims.

Base's Growth and Preparations

Coinbase's Base has witnessed strong growth in transaction volumes and fees, with its total value locked (TVL) hitting an all-time high of over $1.58 billion. This surge in demand has led to network congestion, but also strong earnings for Coinbase.

Teams operating bridges on Base Sepolia need to prepare for the upcoming changes. They should update their user interfaces to inform users about the new withdrawal timeframe and review their bridging logic to work with the new L1 contracts. The upgrade itself will be a single transaction, requiring no action from node operators.

As Base continues to evolve, the introduction of fault proofs on the Sepolia testnet represents a significant step towards a more decentralized and secure Layer 2 network, with far-reaching implications for the cryptocurrency ecosystem.