Why is it so difficult to decentralize layer2 technology from the perspective of the industry?

Author: Haotian Crypto Observer Source: X (formerly Twitter) @tmel0211

Blast’s multi-signature security risks are still criticized, and even Tieshun’s joke has been spread, but this has not affected Blast’s total lock-up value (TVL) of _L2 to continue to rise. Rational cognition prompts people to criticize Blast, but the instinct to seek profit makes it difficult to refuse to embrace Blast. **

Next, putting aside Blast’s specific multisig security issues, let’s explore why Layer 2’s technical decentralization is so difficult from the perspective of the Layer 2 industry.

First of all, it clarifies the decentralization of the so-called Layer 2 technical components, including: Sequencer, Prover, Validator, Mainnet Rollup Contract and other key components distributed in Mainnet and Layer 2. Among them, ZK-Rollup has more Prover systems than OP-Rollup, and everyone is mainly focused on the operation of Sequencer. In addition, some of the differences are that the degree to which data availability is achieved depends on the degree of Ethereum mainnet, and the equivalence of the EVM mainnet.

At present, the decentralization status of each Layer 2 core technology component is as follows:

• Arbitrum says it is working with Espresso Systerm to explore the possibility of decentralized Sequencer, which is still in the exploration phase;

• Starknet’s Prover system implements permissionless decentralization, but Sequencer’s decentralization message is not yet clear;

• Optimism rationalizes the centralization of Sequencer and launches the OP Stack strategy, which attempts to decentralize the authority by sharing the Sequencer security governance committee, and make up for the technical consensus shortcomings with social consensus;

• zkSync has not had any signs of open source and decentralization of core components for a long time, and has launched the ZK Stack multi-appchain strategy. According to the official statement, zkSync will become a typical application chain under the Stack strategy, and it is also a helpless move to evade decentralized technology.

It is not difficult to see that the four Layer 2s have their own considerations on the decentralization of core technology components, some are still telling the story of technology decentralization, and some have tried to make up for the shortcomings of pure technology decentralization with the Stack strategy. **Overall, Layer 2’s pure technology decentralization is very difficult. Why?

1. Layer 2 Sequencers usually use centralized EOA addresses to save on mainnet interaction costs. Optimism and zkSync both use EOA addresses, which are directly controlled by the private key, making the operation more flexible. Compared to the complex logic and functionality of smart contracts, EOA structures have a smaller attack surface. Most critically, these EOA addresses can reduce costs when interacting with mainnet contracts. However, the most effective way to manage private keys is to have strong centralized management. Decentralized management of private keys increases the attack surface of the system.

2. Sequencer is responsible for extracting fees from Layer 2, which typically cover the costs of batch transactions submitted to Mainnet, etc., which constitute Layer 2’s gross revenue. This makes Sequencer’s controllers reluctant to easily disperse power. Once the rights are too dispersed, new problems will inevitably arise in terms of core incentives and fees, such as the distribution of benefits.

3)The process of Prover system generating and verifying Proof has a high technical threshold. At present, there is little innovation in ZK-Rollup ecological projects, one of the main reasons is that the data structure adaptation and ZK circuit threshold are high, especially for decentralized validators. Once the validators are too scattered, there will be stability problems in the process of processing and verifying Proofs.

4. **OP-Rollup rarely has actual battle-tested challenges. This is mainly due to the fact that centralized Sequencer makes Layer 2 naturally inclined towards optimism and zero challenge. In a way, the overly centralized Sequencer seems to be a weakness, but it actually becomes another security mechanism.

5. In the event of a Layer 2 security failure, Sequencer can forcibly freeze and control the outflow of assets. A low-cost hard fork at Layer 2 could be a response. But what if Sequencer is attacked, a large amount of funds are withdrawn to the mainnet, and the implementation of upgradeable multi-signature governance by the mainnet rollup contract is another layer of double insurance. Because it is impossible for Layer 2 to rely on a hard fork at the mainnet level.

To put it bluntly, the mainnet is only responsible for multisig governance to ensure the security of the Layer 2 Sequencer in the event of an attack. There is no point in discussing who is on the multi-signature and whether it has prestige.

At present, it is rare to hear about the problems caused by Layer 2 being too centralized, mainly due to the high overall technical threshold of Layer 2, the good reputation of the founding team, the support of investment institutions, and the built-in special security mechanisms (challenge mechanism, DA, etc.). This makes running Layer 2 a long-term sustainable business, especially since sitting back and watching the entire ecosystem rise and continue to take fees is the end game of Layer 2.

If a Layer 2 project does not talk about ecology and technology, but only talks about airdrop expectations in the name of “everyone is the same”, in addition to Rug risks, it should first question whether it is really Layer 2.

Overall, the current situation of Layer 2 technology decentralization is not ideal. In the longer term, the ethereal multi-chain shared component strategy of the stack strategy may be the only solution to the excessive power of Layer 2 centralization.

Fundamentally speaking, both technical consensus and social consensus are ultimately a kind of restraint on evil behavior.

Source: Golden Finance