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Merge pull request #2784 from OffchainLabs/orbit-config-pt4
docs: tw-565-orbit-config-pt4
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‎docs/launch-arbitrum-chain/01-a-gentle-introduction.mdx‎

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- Arbitrum chains can be a <a data-quicklook-from='layer-2-l2'>Layer 2 (L2)</a> chain which settles directly to Ethereum, or a Layer 3 (L3) chain which can settle to any Ethereum L2, such as <a data-quicklook-from='arbitrum-one'>Arbitrum One</a>.
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<ImageZoom
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src="/img/orbit-settlement-layers.png"
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src="/img/orbit-settlement-layers.svg"
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alt="Arbitrum Orbit chain settlement layers"
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className="img-600px"
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className="img-800px"
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/>
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### What's an Arbitrum chain?
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### What key features should I consider?
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| Feature | Description |
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| --------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
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| Dedicated throughput | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-dedicated-throughput.mdx">More info</FloatingHoverModal> |
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| EVM+ compatibility | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-evm-compatibility.mdx">EVM compatability</FloatingHoverModal> + <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-other-language-support.mdx">more languages like Rust programs supported</FloatingHoverModal> |
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| Account abstraction | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-account-abstraction.mdx">Account abstraction</FloatingHoverModal> |
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| Gas & Tokens | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-custom-gas-token.mdx">Custom gas token</FloatingHoverModal> or <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-native-eth.mdx">Native ETH</FloatingHoverModal> |
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| Data availability | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-rollup.mdx">Rollup (ETH DA)</FloatingHoverModal>, <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-anytrust.mdx">AnyTrust</FloatingHoverModal>, <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-alt-da.mdx">Alt-DA</FloatingHoverModal> |
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| Fast confirmations | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-fast-withdrawals.mdx">Fast withdrawals</FloatingHoverModal> |
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| Security & validation | BoLD, Permissioned validators, <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-challenge-period-l1.mdx">Challenge period enforced on L1</FloatingHoverModal> |
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| Safety Features | Force-inclusion & <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-customizable-governance.mdx">customizable governance</FloatingHoverModal> |
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| MEV | Timeboost |
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| Cost | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-data-posting-costs.mdx">Data posting costs</FloatingHoverModal> |
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| Infrastructure | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-hardware.mdx">Hardware requirements</FloatingHoverModal> |
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| Interop | TBD |
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| Feature | Description |
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| --------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
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| Dedicated throughput | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-dedicated-throughput.mdx">More info</FloatingHoverModal> |
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| EVM+ compatibility | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-evm-compatibility.mdx">EVM compatibility</FloatingHoverModal> + <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-other-language-support.mdx">more languages like Rust programs supported</FloatingHoverModal> |
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| Account abstraction | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-account-abstraction.mdx">Account abstraction</FloatingHoverModal> |
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| Gas & Tokens | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-custom-gas-token.mdx">Custom gas token</FloatingHoverModal> or <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-native-eth.mdx">Native ETH</FloatingHoverModal> |
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| Data availability | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-rollup.mdx">Rollup (ETH DA)</FloatingHoverModal>, <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-anytrust.mdx">AnyTrust</FloatingHoverModal>, <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-alt-da.mdx">Alt-DA</FloatingHoverModal> |
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| Fast confirmations | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-fast-withdrawals.mdx">Fast withdrawals</FloatingHoverModal> |
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| Security & validation | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-bold.mdx">BoLD</FloatingHoverModal>, <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-permissioned-validators.mdx">Permissioned validators</FloatingHoverModal>, <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-l1-challenge-period.mdx">Challenge period enforced on L1</FloatingHoverModal> |
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| Safety Features | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-force-inclusion.mdx">Force-inclusion</FloatingHoverModal> & <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-customizable-governance.mdx">customizable governance</FloatingHoverModal> |
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| MEV | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-timeboost.mdx">Timeboost</FloatingHoverModal> |
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| Cost | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-data-posting-costs.mdx">Data posting costs</FloatingHoverModal> |
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| Infrastructure | <FloatingHoverModal href="/launch-arbitrum-chain/partials/config-hardware.mdx">Hardware requirements</FloatingHoverModal> |
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| Interop | TBD |
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### How do Arbitrum chains help the Ethereum ecosystem?
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‎docs/launch-arbitrum-chain/partials/config-anytrust.mdx‎

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## Cons of using AnyTrust
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- **Introduced trust assumptions**: Relies on the DAC's honesty and availability, which adds a layer of trust not present in full trustless rollups. This could be a risk if committee members collude or fail.
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- **Reduced decentralization and security guarantees**: Lacks the full trustlessness, permissionlessness, and censorship resistance of Rollups, as not all data is posted to Ethereum by default. This makes it less suitable for high-value DeFi or applications requiring Ethereum-level security.
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- **Potential for fallback mode issues**: If the DAC quorum isn't met, the chain reverts to Rollup mode, which could increase costs temporarily and introduce delays similar to standard Rollups.
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- **Liquidity and adoption changes**: May face lower liquidity or ecosystem integration compared to rollup-based chains like Arbitrum One, potentially limiting interoperability for certain dApps.
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- **Introduced trust assumptions**: Relies on the DAC's honesty and availability, which adds a layer of trust not present in full trustless Rollups. This trust assumption could be a risk if committee members collude or fail.
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- **Reduced decentralization and security guarantees**: Lacks the full trustlessness, permissionlessness, and censorship resistance of Rollups, as not all data is posted to Ethereum by default. This lack of data posting makes it less suitable for high-value DeFi or applications requiring Ethereum-level security.
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- **Potential for fallback mode issues**: If the DAC cannot come to a quorum, the chain reverts to Rollup mode, which could increase costs temporarily and introduce delays similar to standard Rollups.
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- **Liquidity and adoption changes**: May face lower liquidity or ecosystem integration compared to Rollup-based chains like Arbitrum One, potentially limiting interoperability with certain <a data-quicklook-from="dapp">apps</a>.
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- **Not optimal for all use cases**: For applications handling significant financial value or needing maximum security, the trade-offs in decentralization could outweigh the benefits.

‎docs/launch-arbitrum-chain/partials/config-bold.mdx‎

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BoLD (Bounded Liquidity Delay) is a dispute resolution protocol that enables permissionless validation, allowing anyone to propose, challenge, and defend chain states by bonding `ETH`, with disputes resolved in a fixed-time window (typically around 7-14 days, depending on the chain). For Arbitrum chains, BoLD is available as an optional upgrade via the Nitro stack, enhancing decentralization and security while setting states to a parent chain like Ethereum or Arbitrum One.
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| Feature | Pros | Cons |
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| ----------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
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| Validation & Decentraliation | - Enables permissionless validation, allowing anyone to propose and defend states, increasing resilience and inclusivity <br /> - Supports trustless bonding pools, letting groups pool `ETH` to participate without high individual capital barriers, promoting broader decentralization | - High bond requirements (e.g., potentially thousands of `ETH` for assertions) may centralize participation to well-funded entities, limiting smaller validators. <br /> - No built-in protocol-level incentives for validators could lead to free-riding, where parties rely on others to defend the chain. |
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| Security & Dispute Resolution | - Mitigates delay attacks by enforcing a bounded dispute window (e.g., ~7 days plus grace periods), ensuring predictable resolution even against multiple malicious challengers. <br /> - Enhances withdrawal security to the parent chain by limiting indefinite delays, and includes features like Delay Buffer for censorship resistance. <br /> - A single honest party can win disputes against any number of dishonest ones, with audited code for reliability. | - Disputes can still delay all withdrawals (up to ~14 days total), impacting user experience and liquidity. <br /> - For lower-TVL Arbitrum chains, high bonds might need adjustment, trading off security against centralization risks or vulnerability to spam. <br /> - Potential censorship risks for L3 Arbitrum chains (e.g., parent chain is censored, delays could extend up to 50 days in extreme cases, though mitigated). |
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| Economics & Incentives | - Bonds deter actors, with honest parties refunded plus a 1% defender's bounty and gas reimbursements, plus potential service fees (3-4% annualized `ETH` yield) from chain owners. <br /> - Fixed costs and resource ratios prevent dishonest parties from inflating expenses for honest validators. | - Significant capital lockup in bonds creates opportunity costs and risks (e.g., loss if proven wrong), potentially prohibitive for smaller chains. <br /> - KYC requirements for fee eligibility may exclude some participants, like those in sanctioned regions. <br /> - Operational costs for onchain proofs and disputes (gas, computation), add complexity and expenses. |
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| Implementations & Maturity | - Modular upgrade for Arbitrum chains <br /> - Community testing via testnets and visualizers available for easier adoption | - Increased protocol complexity may require additional tooling and expertise to manage. <br /> - Reliance on parent chain for final proofs; issues there could affect Arbitrum chain disputes. |

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