Ethereum L2s’ sluggish progress in decentralization exposed by Linea blockchain’s pause

The recent hack that led to the suspension of block production on the Ethereum layer-2 blockchain Linea has emphasized the urgent need for decentralization, according to Alex Gluchowski, CEO of Matter Labs. On June 2, an attacker exploited the Linea-based decentralized exchange Velocore, resulting in the transfer of more than $2.6 million in Ether. Linea has since resumed block production, but Gluchowski emphasized the importance of decentralizing the sequencer on layer-2 platforms. Declan Fox, Linea’s product lead, agreed that decentralization is crucial but assured that the network is on a solid path to achieving it in a shorter time frame compared to its competitors. Despite criticism over setting ambitious targets following the hack, Linea announced its “The Linea Voyage: Surge” campaign in April to increase the total value locked on the blockchain to $3 billion. The hack forced Linea to halt its sequencer temporarily to prevent further funds from being compromised. The hacker exploited Velocore, transferring 700 Ether to a third-party bridge. Linea intends to decentralize its network, including the sequencer, to avoid future disruptions and address censorship concerns. Velocore is working with external networks to reimburse affected victims. It is worth noting that most Ethereum layer-2 solutions, including Base, remain centralized. Coinbase currently serves as the sole sequencer of Base but has plans to gradually decentralize it.