Originally published on: December 07, 2024
As the Ethereum layer-2 (L2) ecosystem continues to grow and dominate daily economic activity on the blockchain, the issue of centralization remains a concern. Elena Sinelnikova, co-founder of Metis L2, believes that adopting decentralized sequencers in layer-2 scaling solutions is crucial for enhancing anti-fragility and censorship resistance.
Sinelnikova highlights the risk posed by centralized sequencers on most layer-2 networks, where users may unknowingly transact on platforms that can be controlled or shut down at any moment. She argues that embracing decentralized sequencers is a simpler and more effective option to promote decentralization than the current model of competing and isolated L2 solutions.
Despite proposals from the Ethereum Foundation to improve decentralization through enhanced L2 interoperability, Sinelnikova advocates for the adoption of decentralized sequencers. She foresees continued growth in the number of layer-2 scaling solutions by 2025, indicating a positive trajectory for the Ethereum layer-2 ecosystem.
Recent developments, such as Vitalik Buterin’s plan to increase throughput to 100,000 transactions per second as part of Ethereum’s “The Surge” roadmap, demonstrate the ongoing evolution of layer-2 networks. The surge in daily transaction data and total value locked across Ethereum L2s underscores the increasing adoption and usage of these solutions.
In November 2024 alone, Ethereum L2s recorded $51.5 billion in total value locked, marking a 205% year-over-year growth. With major players like Arbitrum One and Base leading the way, the total value locked surpassed $60 billion in early December 2024.
As Ethereum’s layer-2 ecosystem continues to thrive, the importance of decentralized sequencers in ensuring the resilience and security of these networks cannot be understated. Stay informed on the latest developments in the crypto space with our Crypto Biz newsletter, offering valuable insights to help you navigate the market and identify new opportunities. Subscribe today for a weekly snapshot of key business trends in blockchain and crypto.