Fraud Proofs Based on Bitcoin

Merlin Chain will introduce a fraud proof mechanism to further ensure data integrity and security. This mechanism involves two roles: the Prover and the Verifier. The implementation pathway is as follows:

1. Pre-Signed Transactions

   • Provers and Verifiers pre-sign a series of transactions to enable a challenge-response mechanism between them.

2. Binary Circuit Conversion

   • The Prover converts the program to be verified into a binary circuit containing many NAND logic gates to ensure data integrity and correctness.

   • Each logic gate has a leaf script defining and describing its behavior and function.

3. Merkle Tree Submission

   • The Prover places the leaf script of each logic gate in this large binary circuit into a Merkle Tree and submits the Merkle Root to a Taproot address.

4. Verification Process

   • The Verifier extracts the Merkle Root from the Taproot address and verifies its validity.

   • If the Verifier suspects any issues with the submitted Merkle Root, such as incorrect data or fraudulent behavior, they can initiate the challenge-response mechanism. The Verifier challenges the Prover to provide the corresponding leaf scripts or other proofs to verify the correctness of the Merkle Root.

   • The Prover must provide the necessary evidence to prove that the submitted Merkle Root is correct.

   • The Verifier checks these proofs to ensure their validity and the integrity of the data.