Redstone is an Optimistic Rollup building on the OP Stack codebase. In practical terms, this means it is an Ethereum blockchain that inherits most security guarantees from L1 (Ethereum mainnet), but has much cheaper transactions. This is important because L1 transactions are typically too expensive for many use cases, such as games.
Pyrope is the public testnet for Redstone, settling on the Ethereum Sepolia testnet.
The main difference between Redstone and other OP Stack rollups is data availability. Instead of using L1 Ethereum for data availability (to post transactions), Redstone and Pyrope use Plasma mode. This means that they only post input commitments (the hash of the transaction data) to L1, while making that data available offchain.
This architectural difference has two big effects:
Because we don't inherit the availability guarantee of L1 Ethereum, we need a separate mechanism to guarantee that data is available when needed. This mechanism is Data Availability Challenges (DA Challenges).
The process is this:
In theory, a node could challenge every input commitment, and turn a Redstone rollup into a standard OP Rollup with the attendant costs. To avoid that, when a node submits a DA challenge it has to post a bond with an amount equivalent to the cost of resolving the challenge (based on the amount of data that would have to be posted to L1).
If the challenge is not resolved successfully, that bond is returned to the challenger. If the challenge is resolved successfully, the bond is burned.
Note that the bond is burned, rather than given to the DA Provider, because if it were given to the DA Provider it would create a perverse incentive to not make data available offchain, to get such bonds.