# The Hybrid Rollup Model

FOGEVM operates as an **Encrypted Optimistic Rollup**. This hybrid model leverages the economic security of Optimistic verification while utilizing cryptographic hardware to guarantee privacy.

* **The L2 State:** All smart contract execution, state changes, and account balances exist within the L2 environment. This state is encrypted at rest and in transit.
* **The L1 Commitment:** Periodically, the FOGEVM Sequencer bundles thousands of transactions and posts a "State Root" hash to the Ethereum Mainnet. This hash is a cryptographic commitment to the current state of the database, without revealing the database itself.
* **Fraud Proofs:** Unlike traditional Optimistic Rollups that rely on re-playing data publicly to prove fraud, FOGEVM utilizes Zero-Knowledge Fraud Proofs. If a validator suspects the Sequencer acted maliciously, they can generate a ZK-proof showing the state transition was invalid, without revealing the private user data.


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