💥💥💥 #Linea #Blockchain halt highlights slow decentralization of #Ethereum L2s


The recent hack leading to the halting of block production on Ethereum #Layer2 blockchain Linea emphasizes the urgency for layer-2 firms to prioritize decentralization, says Matter Labs CEO Alex Gluchowski.

On June 2, Linea experienced a hack resulting in over $2.6 million in Ether being transferred off the platform through Linea-based decentralized exchange Velocore, Linea announced in a post.

While Linea has since resumed block production, the incident underscores the necessity for decentralization on Ethereum layer-2 platforms, as emphasized by Gluchowski.

Gluchowski stressed, "Decentralizing the sequencer isn’t optional. Every serious L2 stack must race to do so first." This sentiment was echoed by Linea’s product lead, Declan Fox, who acknowledged that decentralization is imperative for the network.

Linea's recent hack prompted criticism, especially in light of its "The Linea Voyage: Surge" campaign aiming to increase total value locked to $3 billion. Currently, just over $1.2 billion is locked on the blockchain, according to L2BEAT.

The decision to halt block production was deemed a "last resort" by Linea to prevent further losses. The hacker exploited Linea-based DEX Velocore, transferring 700 Ether worth over $2.6 million off the platform via a third-party bridge.

Linea intends to decentralize its network in the future, including its sequencer, to prevent similar incidents. Velocore is collaborating with external networks to reimburse affected victims.

Despite the centralized nature of most Ethereum layer-2 solutions, efforts are being made towards decentralization. For instance, Coinbase is currently the sole sequencer of Base, but plans are in place to gradually decentralize the platform over time.

Source - cointelegraph.com