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Arbitrum

Overlap is a cross-chain protocol operating simultaneously on Ethereum and Arbitrum.
Its architecture leverages Ethereum’s deep liquidity and security, while utilizing Arbitrum’s scalability and low transaction costs.

Overview​

In Overlap’s cross-chain design, Arbitrum provides scalable computation for complex task processing and state updates.
All validator activity takes place on Arbitrum, enabling Overlap to deliver operational efficiency while maintaining the strong security guarantees of Layer 1 Ethereum.

Arbitrum Smart Contracts​

At their core, Arbitrum smart contracts serve as the execution hub for Overlap’s task resolution mechanism.
Their main functionalities include:

  • Task Creation – Users create new tasks directly on Arbitrum.
  • Consensus Execution – Validators submit votes and form majorities over assigned tasks.
  • Performance Tracking – Validator accuracy and historical task data are maintained on-chain.
  • Reward Distribution – Task rewards are distributed to validators based on their accuracy.
  • Certificate Issuance – Soulbound NFT certificates are minted for successfully finalized tasks.

Data Flow and Logic​

Overlap’s cross-chain architecture ensures computation remains fast and affordable.
The operational flow proceeds as follows:

  1. Users create tasks on Arbitrum.
  2. Validators deliberate and submit votes.
  3. Consensus is computed automatically through smart contract logic.
  4. Performance metrics are updated for all participants.
  5. Rewards are distributed proportionally to validator performance.
  6. Certificates are issued as immutable proof of resolution.

Synchronization with Ethereum​

Arbitrum contracts act as the main source of truth for validator performance and protocol outcomes, while maintaining a live synchronization with Ethereum contracts through the CCIP protocol.

Cross-chain synchronization ensures that:

  • Validator registration and eligibility data from Ethereum are reflected on Arbitrum.
  • Performance updates and task finalizations remain consistent across both networks.

Arbitrum enables Overlap’s decentralized resolution layer, combining computational efficiency with Ethereum’s security — ensuring that every task, validator, and reward is processed effectively, transparently, and fairly.