The contemporary short dwell of block manufacturing on Consensys’ Linea network following a $6.8 million exploit on the Velocore DEX, has renewed the debate about decentralizing sequencers in Ethereum Layer 2 (L2) solutions. Amidst this, on Wednesday, Optimism passed a proposal to put into effect fraud proofs. Though this wouldn’t lend a hand decentralize the sequencer, it would propel the blockchain to what’s often called “Stage 1” decentralization on layer 2s.

Sequencers in layer 2 solutions are entities that shriek and batch transactions before submitting them to the layer 1 blockchain, enabling extra transactions per second at a decrease designate. Then again, the centralization of these sequencers has raised concerns about safety and censorship.

Be taught extra: What Are Sequencers in Layer 2 Protocols?

Steven Goldfeder, CEO of Offchain Labs, which develops Ethereum’s top L2, Arbitrum, urged Unchained that it’s most necessary to well contextualize when discussing sequencers: “The term ‘sequencer’ system varied things in varied protocols.” The sequencer’s function is to shriek transactions, thus the definition. While this centralized ingredient permits for faster transaction processing, it will also censor by delaying transactions, though it will’t alter account balances or put up illegitimate transactions. This safeguard is ensured by a network of validators that would possibly perhaps maybe well boom any inaccurate actions thru a fraud-proof mechanism.

Attributable to this fact, in line with Goldfeder, whereas the sequencer is centralized, the validation direction of is now not, involving entities love Offchain Labs, Consensys, and even Google. Then again, Goldfeder highlighted that the “holy grail” is that all people can validate. To enact that, within the next couple weeks, they demand to roll out Arbitrum Audacious, a unique protocol for managing disputes on Arbitrum chains that enables permissionless validation. Goldfeder means that whereas decentralizing sequencers is a a must-safe discipline, it is a “bit smaller than what a form of folks can even demand.”

Christine Kim, VP of research at Galaxy Digital, believes that decentralization is a spectrum and that fault-proof mechanisms on my own construct now not make sure decentralization. “Rollups in most cases are tremendously much less decentralized and salvage than the atrocious layer, Ethereum.” Then again, she thinks that having a working fault-proof mechanism does now not suggest that a rollup is extra decentralized than one other because “working fault proofs is now not the splendid mechanism that rollups safe to enact elevated ranges of decentralization and resiliency,” she urged Unchained thru e mail.

Haseeb Qureshi, managing accomplice at Dragonfly, sees eye to eye, noting that whereas Arbitrum has fault proofs, they are at demonstrate whitelist-handiest. “The most necessary thing about sequencers is now not decentralizing so great as making the sequencers extra sturdy. That virtually indubitably comes first,” he urged Unchained.

Despite the truth that fault proofs are now not the splendid measure of decentralization for L2s, of the tip five L2s by TVL, handiest Arbitrum has a fraud system in discipline. Optimism, Uninteresting, Blast and Mantle, at demonstrate lack fraud-proof mechanisms, which system their sequencers safe extra power over transaction outcomes. “Typically they’ve a dictator,” said Goldfeder.

“We favor fault proofs on OP Stack, and then we wish fault proofs to be decent ample that any individual can even tranquil be ready to put up them, and switch away from safety councils and multisigs,” Qureshi said.

Kim argues that whereas optimistic rollups can even tranquil work in the direction of decentralizing their sequencers, they have to also manufacture working fault proofs, sturdy governance mechanisms, decrease reliance on admin controls, decrease charges, and increase interoperability with varied rollups. “A decentralized sequencer will likely be one in all the hardest initiatives for a rollup to work in the direction of however indubitably now not the splendid most necessary one within the shut to-term to enhance a rollup’s decentralization and resiliency,” she added.

Be taught extra: A Beginner’s Data to Ethereum Layers: Info Availability, Consensus, and Execution