Linea Blockchain Halt Exposes Slow Ethereum L2 Decentralization
In a significant event that underscores the importance of decentralization for layer-2 blockchain platforms, Linea, a zkEVM blockchain launched by Consensys, made the decision to pause block production after a security breach resulted in the loss of over $2.6 million in Ether (ETH). Alex Gluchowski, CEO of Matter Labs, weighed in on the situation, emphasizing that decentralization should be a priority for all serious layer-2 (L2) solutions sooner rather than later.
The incident unfolded on June 2, when Linea-based decentralized exchange Velocore was exploited by a hacker, leading to the substantial withdrawal of funds. While block production has since resumed, the halt highlighted vulnerabilities tied to centralized control within layer-2 networks. Gluchowski pointed out that any competitive L2 stack must prioritize decentralizing its sequencer to avoid similar issues.
In response to Gluchowski, Linea’s product lead, Declan Fox, agreed on the necessity for decentralization. He reassured the community that Linea is moving swiftly toward this goal, possibly at a faster pace than some of its competitors. He mentioned that other roll-up frameworks older than Linea by over two years are not as advanced in their decentralization efforts, suggesting that Linea is on a promising path.
Earlier in April, Linea had announced its ambitious “The Linea Voyage: Surge” campaign, setting a target to increase its total value locked (TVL) to $3 billion. Currently, around $1.2 billion is locked on the Linea blockchain, according to L2BEAT data. Following the recent hack, some critics have questioned the prudence of setting such a high target until security concerns are fully addressed.
Linea clarified that the decision to halt its sequencer was a measure of last resort aimed at protecting user assets. The team explained that this action was necessary to stop additional funds from being transferred out of the network. Hexagate played a crucial role in notifying Linea about the hack and aided in tracking the stolen funds, vulnerable smart contracts, and the addresses of the exploiters.
Unfortunately, immediate contact with Velocore wasn’t possible as the hack occurred during nighttime hours in Velocore’s time zone. Linea’s statement acknowledged that like many other L2 projects, their platform is still in the “training wheels” phase, which includes certain safeguards such as the ability to halt transactions.
The hacker successfully exploited vulnerabilities in Velocore, transferring approximately 700 Ether (worth over $2.6 million) off the Linea platform through a third-party bridge. Block production was paused between blocks 5081800 and 5081801 in response. Linea emphasized that future plans include decentralizing the network and its sequencer to prevent such centralized control measures, which could halt block production or censor addresses, from being necessary.
In light of the hack, Velocore has committed to working with external networks to issue reimbursements to affected users. Despite the incident, Linea asserted that its network remains fundamentally safe and secure.
Consensys initially launched Linea in August 2023, and since then, the platform has successfully onboarded more than 50 partners and facilitated transfers of over $26 million in Ether. It’s worth noting that almost all existing Ethereum layer-2 solutions, including notable ones like Base, are still centralized to some extent.
According to L2BEAT, Coinbase, for instance, acts as the sole sequencer for its layer-2 solution, Base. Coinbase has also indicated plans for the gradual decentralization of Base, reflecting a growing recognition of the importance of this aspect across the industry.
29 thoughts on “Linea Blockchain Halt Exposes Slow Ethereum L2 Decentralization”
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If decentralization is so important, why wasn’t it implemented before launching? This is amateur hour.
Way to prioritize decentralization, Linea! Your response is truly commendable.
Kudos to Linea for taking firm steps toward a safer, decentralized future.
Kudos to Linea and their quick action. Excited for the decentralized future of L2.
Congrats to Linea on their quick and effective response. Decentralization is indeed the future! 🚀
Decentralization is the future! Linea’s commitment is commendable.
How are we supposed to trust any layer-2 solutions when they all admit to being centralized messes?
Fantastic to see Linea prioritizing decentralization and security!
Linea’s proactive measures are a game changer in the blockchain world. Excited for the decentralized future!
Linea has shown remarkable resilience and foresight. Exciting times ahead for decentralized L2 solutions! 🌟
Pausing block production isn’t a solutionits an excuse for centralized control. Do better, Linea!
Linea sets an example for the industry with their response and commitment to safer, decentralized solutions.
Really? We’re supposed to believe the network is safe when $2.6 million just vanished?
Why even set a $3 billion TVL target when you cant secure $1.2 billion? Priorities, people, priorities!
Decentralization FTW! Linea stepping up the game in blockchain security and innovation.
Inspiring commitment from Linea toward decentralization!
One security breach and the whole network stops. Not very confidence-inducing for future users.
More talk about goals and campaigns, less action on actual security. Not buying into Lineas supposed promising path.
Impressed with how Linea handled the breach! Decentralization efforts are spot on!
Linea’s swift response to the breach is impressive. They’re clearly ahead in the decentralization game!
Linea is leading the charge in decentralizing layer-2 platforms. Exciting future ahead! 🌟
Decentralizing the sequencer is key! Linea is leading by example. 🌐
Such proactive measures to secure user assets! 👏 Way to go, Linea! 🔒
million gone and theyre still talking about decentralization? Fix the damn security first!
Hexagate had to notify them? Shouldnt Linea have their own security measures in place?
Love how Velocore is issuing reimbursements now. Should’ve focused on preventing hacks in the first place!
Hacking during night hours? Sounds like a poor excuse for a lack of real-time security measures.
million worth of transfers, and they still can’t secure $2.6 million? I’m not impressed.
Bravo Linea! Exemplary response to a challenging situation.