Backstop Layer 2: A forkable L2 to secure oracles and arbitration systems

21 Pages Posted: 8 Dec 2023

See all articles by Edmund Edgar

Edmund Edgar


Alexander Hermann


Silke Noa Elrifai

Stanford Law School; Université Paris II Panthéon-Assas; CERSA/CNRS

Date Written: November 24, 2023


We describe a design for an L2 ledger with an enshrined dispute resolution oracle. Contracts deployed on the ledger benefit from oracles and governance arbitration backstopped by the ability, in extremis, to fork the entire L2 ledger on which they are running. Decisions about assets issued on the forkable ledger benefit from "subjectivocratic" security. Tokens bridged from other ledgers can also be managed, albeit with an economic security bound. Tokens representing Real-World Assets can be bridged in the same way, or by extending the trust users already place in their issuer.

Keywords: oracles, arbitration, dispute resolution, blockchain, layer 2

JEL Classification: G38, H79, H89, K29, O30, O38, O39

Suggested Citation

Edgar, Edmund and Hermann, Alexander and Elrifai, Silke Noa, Backstop Layer 2: A forkable L2 to secure oracles and arbitration systems (November 24, 2023). Available at SSRN: or

Edmund Edgar

Independent ( email )

Alexander Hermann

Independent ( email )

Silke Noa Elrifai (Contact Author)

Stanford Law School ( email )

559 Nathan Abbott Way
Stanford, CA 94305-8610
United States

Université Paris II Panthéon-Assas ( email )

CERSA/CNRS ( email )


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