Order Validation

The goal of the Order Validation process in the Yamata system is to ensure that all transactions are processed fairly, transparently, and without errors, ensuring that orders processed by the off-chain sequencer align with the on-chain records.

Order Validation Flow

1. Introduction to Validating Nodes (VNs) - who are responsible for ensuring that all transactions are processed accurately and fairly. They monitor both the off-chain sequencer and on-chain data to detect any discrepancies.

2. Order Matching - VNs validate that orders processed by the off-chain sequencer match their corresponding on-chain records.

3. Challenge Process

   • Discrepancy Detection between the off-chain and on-chain data, or any irregularity in the order processing.

   • Challenge Initiation requires the VN to provide clear proof to justify the initiated challenge.

   • Challenge Approval, where the challenge is raised by 5 VNs and the process moves to further validation and defense.

4. Voting & Sequencer Defense - where VNs vote on whether the sequencer was wrong. If a majority (½ + 1) agrees, the challenge succeeds, and the sequencer is penalized. If the sequencer can defend itself successfully, the challenge is dismissed, and the VNs are penalized for raising an invalid challenge.