The recent decision by Ethereum layer-2 blockchain Linea to halt block production after a hack has brought attention to the need for prioritising decentralisation among layer-2 solutions, says Alex Gluchowski, CEO of Matter Labs.
On June 2, a hacker exploited the Linea-based decentralised exchange Velocore, leading to over $2.6 million in Ether (ETH) being transferred off Linea.
Linea has since resumed block production. The temporary halt of the zkEVM blockchain by Linea highlighted the urgent need for decentralisation, as noted by Gluchowski.
“Decentralising the sequencer isn’t optional. Every serious L2 stack must race to do first,” stated Gluchowski, whose company is behind Linea’s competitors in zkSync.
Linea’s product lead, Declan Fox, acknowledged the importance of decentralisation but assured that Linea is on a “solid path” to achieving it faster than many competitors.
“Given that many Rollup frameworks more than 2 years older than us are no further ahead, I’m pretty delighted with our pace.”
The firm also noted that the halt in block production was its “last resort” to protect users and prevent additional funds from being bridged out. Linea was alerted to the hack by Hexagate, which helped trace the stolen funds and vulnerable contracts. However, the team couldn’t immediately contact Velocore as it was “the middle of the night” in their timezone.
“Like other L2s, we are still in the ‘training wheels’ phase of existence, giving us safeguards to use.”
The hacker exploited Linea-based DEX Velocore, which moved 700 Ether — worth over $2.6 million — off Linea via a third-party bridge.
The sequencer was paused between blocks 5081800 and 5081801.
Linea stressed the importance of decentralising its network, including its sequencer, to avoid future block production halts and address censorship issues. Meanwhile, Velocore is working with external networks to reimburse affected users.
Consensys launched Linea in August 2023, partnering with over 50 entities and bridging more than $26 million in Ether. Despite the efforts, most Ethereum layer-2 solutions, including Linea and Base, remain centralised. Coinbase, the sole sequencer for Base, has also committed to gradual decentralisation over time.
Recently, Linea launched “The Linea Voyage: Surge” campaign in April to increase its total value locked (TVL) to $3 billion. However, the firm was criticised for setting such a target after the recent hack. Currently, a little over $1.2 billion is locked on Linea, according to L2BEAT.
