Ethereum

Base

Linea

Velocore

Ethereum layer-2 blockchain Linea’s decision to halt block production after being hacked highlights the need for layer-2 firms to prioritize decentralization sooner rather than later, says Alex Gluchowski, CEO of Matter Labs.
On June 2, more than $2.6 million in Ether <a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">(ETH)</a> was transferred off <a href="https://cointelegraph.com/news/consensys-launches-linea-zk-evm-to-scale-ethereum" rel="noopener noreferrer nofollow">Consensys-launched Linea</a> after the hacker managed to exploit Linea-based decentralized exchange Velocore, Linea <a href="https://x.com/LineaBuild/status/1797283402745573837" target="_blank" rel="noopener noreferrer nofollow">explained</a> in an X post.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-06/73ec4172-16c0-4fec-953d-a22826bccf77.jpg">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/LineaBuild/status/1797283493778710949" target="_blank" rel="noopener noreferrer nofollow">Linea</a>
 </figcaption>
</figure>
Linea has since resumed block production, but the team’s <a href="https://x.com/LineaBuild/status/1797283402745573837" target="_blank" rel="noopener noreferrer nofollow">decision</a> to halt the zkEVM blockchain showcased the need for decentralization on Ethereum layer was flagged by Gluchowski.
“Decentralizing the sequencer isn’t optional. Every serious L2 stack must race to do first,” <a href="https://x.com/gluk64/status/1797298833824624864" target="_blank" rel="noopener noreferrer nofollow">said </a>Gluchowski, whose firm is behind one of Linea’s competitors in zkSync.
It received a <a href="https://x.com/DeclanFox14/status/1797302358323474585" target="_blank" rel="noopener noreferrer nofollow">response</a> from Linea’s product lead, Declan Fox, who agreed that decentralization isn’t an option but stressed the network is on a “solid path” to decentralizing in a far shorter time window than <a href="https://cointelegraph.com/news/ethereum-benefits-from-zkevm-competition" rel="noopener noreferrer nofollow">many of its competitors.</a>
<blockquote>
 “Given that many Rollup frameworks more than 2 years older than us are no further ahead, I’m pretty delighted with our pace.”
</blockquote>
Linea <a href="https://linea.mirror.xyz/NzFOD8A8tvKIqqjpuJFxepkminihbCzu1n8q7FOoKfA" target="_blank" rel="noopener noreferrer nofollow">announced</a> its “The Linea Voyage: Surge” campaign in April, which will aim to increase the total value locked on Linea to $3 billion. According to L2BEAT, a little over $1.2 billion is locked on the blockchain currently.
However, one onlooker <a href="https://x.com/kaalaman2/status/1797162973883990320" target="_blank" rel="noopener noreferrer nofollow">criticized</a> the firm for setting such a target in light of the recent hack.
<h3 id="linea-s-halt-was-a-last-resort-action">Linea’s halt was a "last resort" action</h3>
The Linea team said it had no option but to halt its sequencer to prevent additional funds from bridging out.
<blockquote>
 “This was the last resort action to protect users on Linea.”
</blockquote>
Linea said it was notified of the hack by Hexagate, which helped trace the stolen user funds, vulnerable smart contracts and exploiter addresses. Linea said they 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 <a href="https://cointelegraph.com/learn/what-are-decentralized-exchanges-and-how-do-dexs-work" rel="noopener noreferrer nofollow">Linea-based DEX Velocore,</a> 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.
The firm stressed its intention to decentralize Linea’s network in the future, including its sequencer, which would prevent the firm from halting block production and censoring addresses.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-06/c889af39-8c36-4867-a732-911268aa3e7f.jpg">
 <figcaption style="text-align: center;">Source: <a href="https://x.com/LineaBuild/status/1797283561596424296" target="_blank" rel="noopener noreferrer nofollow">Linea</a>
 </figcaption>
</figure>
Meanwhile, Velocore <a href="https://x.com/velocoravyx/status/1797319004962296297" target="_blank" rel="noopener noreferrer nofollow">said</a> it is working with external networks involved to issue reimbursements to impacted victims.
Related: <a href="https://cointelegraph.com/news/former-consensys-employee-launches-usd3-stablecoin" rel="noopener noreferrer nofollow">Former Consensys employee launches new stablecoin amid regulatory uncertainty</a>
Linea stressed that its network remains safe and secure.
Consensys <a href="https://cointelegraph.com/news/consensys-completes-public-launch-of-zkevm-linea" rel="noopener noreferrer nofollow">launched Linea in August 2023,</a> onboarding over 50 partners and bridging more than $26 million in Ether at the time.
Almost all Ethereum layer-2 solutions remain centralized, including Base.
According to L2BEAT data, Coinbase is currently the sole sequencer of Base. However, the firm has also asserted its intention to<a href="https://cointelegraph.com/learn/what-is-base-coinbase-l2-network" rel="noopener noreferrer nofollow"> progressively decentralize Base over time.</a>
Magazine:<a href="https://cointelegraph.com/magazine/torque-drift-2-devs-quit-sec-game-nfts-securities-metafighter-web3-gamer/" rel="noopener noreferrer nofollow"> Web3 Gamer: Devs quit after Torque Drift 2 adds crypto, big problem with MetaFighter</a>

Linea blockchain halt highlights slow decentralization of Ethereum L2s

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