Originally published on: December 07, 2024
Decentralized sequencing is the key to unlocking the full potential of layer-2 scaling solutions in the Ethereum ecosystem, according to Elena Sinelnikova, co-founder of Metis L2. As layer-2 networks become increasingly significant in daily economic activities on the Ethereum blockchain, the issue of centralization looms large.
Sinelnikova emphasized the importance of adopting decentralized sequencers in layer-2 scaling solutions to enhance anti-fragility and censorship resistance. She highlighted the risk of most layer-2 networks relying on a single sequencer, leaving users vulnerable to centralized control.
While proposals from the Ethereum Foundation aim to promote decentralization through enhanced L2 interoperability, Sinelnikova believes that decentralized sequencers offer a more straightforward solution.
The growth of layer-2 scaling solutions in the Ethereum ecosystem is expected to continue in 2025, with recent developments signaling progress towards this goal. Vitalik Buterin’s plan to increase throughput to 100,000 transactions per second as part of Ethereum’s “The Surge” roadmap is a significant step towards fostering interoperability between the base layer and layer-2 networks.
In November 2024, Ethereum layer-2 networks recorded a substantial increase in daily transaction data, leading to a spike in fees on the Ethereum base layer. This surge in activity resulted in a reversal of months of low Ethereum revenues, showcasing the growing importance of layer-2 solutions.
According to L2Beat data, Ethereum’s layer-2 networks saw a total value locked of $51.5 billion in November 2024, representing a 205% year-over-year growth. By December, this figure had surpassed $60 billion, with Arbitrum One and Base leading the pack in total value locked.
With the Ethereum ecosystem poised for further growth and development, the adoption of decentralized sequencers in layer-2 networks will play a crucial role in ensuring a decentralized and resilient future for Ethereum’s scaling solutions. For more insights into the latest trends in blockchain and crypto, subscribe to our Crypto Biz newsletter for weekly updates.