{"id":33353,"date":"2024-12-09T10:15:28","date_gmt":"2024-12-09T07:15:28","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=33353"},"modified":"2024-12-09T08:18:57","modified_gmt":"2024-12-09T05:18:57","slug":"layer-2-networks-need-decentralized-sequencers","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/layer-2-networks-need-decentralized-sequencers\/","title":{"rendered":"Layer-2 Networks Need Decentralized Sequencers"},"content":{"rendered":"<p>As the Ethereum <strong>Layer-2<\/strong> (L2) ecosystem continues to grow, with most of Ethereum\u2019s daily economic activity now taking place on L2 solutions, the issue of <strong>centralization<\/strong> remains.<\/p>\n<p><strong>Elena Sinelnikova<\/strong>, co-founder of <strong>Metis L2<\/strong>, recently told Cointelegraph that <strong>Layer-2 scaling solutions<\/strong> should adopt decentralized sequencers to maximize <strong>anti-fragility<\/strong> and <strong>censorship resistance<\/strong>.<\/p>\n<p>According to Sinelnikova, most L2 networks feature only a single sequencer, and many users are unaware that they are transacting on centrally managed platforms that could be controlled or shut down at any time. Sinelnikova stated:<\/p>\n<p><em><strong>&#8220;Approximately 97% of all Ethereum transactions occur on Layer-2s \u2014 so basically almost all of them. Layer-2 solutions were never meant to be decentralized. They are centralized solutions with one sequencer.&#8221;<\/strong><\/em><\/p>\n<p>Sinelnikova also addressed the <strong>Ethereum Foundation&#8217;s<\/strong> proposals to enhance decentralization by promoting <strong>L2 interoperability<\/strong> as an alternative to the current model of siloed and competing L2 solutions. However, the Metis co-founder argued that adopting decentralized sequencers is a simpler and more effective option.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2024-12\/0193a217-33c6-72f7-abb8-2ff676e61f85\" alt=\"layer-2\" width=\"2360\" height=\"766\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/layer-2-networks-need-decentralized-sequencers\/#Ethereum_Layer-2_Networks_Continue_to_Grow\" title=\"Ethereum Layer-2 Networks Continue to Grow\">Ethereum Layer-2 Networks Continue to Grow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/layer-2-networks-need-decentralized-sequencers\/#Total_Value_Locked_in_Ethereum_L2s\" title=\"Total Value Locked in Ethereum L2s\">Total Value Locked in Ethereum L2s<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Ethereum_Layer-2_Networks_Continue_to_Grow\"><\/span>Ethereum Layer-2 Networks Continue to Grow<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Sinelnikova expects the number of <strong>Layer-2 scaling solutions<\/strong> to continue growing in 2025, and recent developments in the Ethereum L2 ecosystem support this expectation.<\/p>\n<p>In <strong>October 2024<\/strong>, Ethereum co-founder <strong>Vitalik Buterin<\/strong> outlined plans to increase throughput to <strong>100,000 transactions per second<\/strong> (TPS). This ambitious goal is part of Ethereum&#8217;s roadmap known as <strong>&#8220;The Surge&#8221;<\/strong>, which seeks to achieve <strong>100,000 TPS<\/strong> between Ethereum\u2019s base layer and its Layer-2 networks.<\/p>\n<p><strong>Layer-2 networks<\/strong> processed three times as much daily transaction data in <strong>November 2024<\/strong> compared to <strong>March 2024<\/strong>. This increased activity led to a surge in fees on Ethereum&#8217;s base layer, helping reverse several months of low Ethereum revenues.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Total_Value_Locked_in_Ethereum_L2s\"><\/span>Total Value Locked in Ethereum L2s<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to <strong>L2Beat data<\/strong>, Ethereum L2s recorded <strong>$51.5 billion<\/strong> in total value locked in <strong>November 2024<\/strong>, experiencing <strong>205% year-over-year growth<\/strong>. This figure swelled to over <strong>$60 billion<\/strong> in early December 2024, with <strong>Arbitrum One<\/strong> and <strong>Base<\/strong> leading with <strong>$21.5 billion<\/strong> and <strong>$14.2 billion<\/strong>, respectively.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2024-12\/0193a219-6964-765c-ad45-12f61fa70e52\" alt=\"layer-2\" width=\"2332\" height=\"602\" \/><\/p>\n<hr \/>\n<p><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the Ethereum Layer-2 (L2) ecosystem continues to grow, with most of Ethereum\u2019s daily economic activity now taking place on L2 solutions, the issue of centralization remains. Elena Sinelnikova, co-founder of Metis L2, recently told Cointelegraph that Layer-2 scaling solutions should adopt decentralized sequencers to maximize anti-fragility and censorship resistance. According to Sinelnikova, most L2<\/p>\n","protected":false},"author":28,"featured_media":32170,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,657,2],"tags":[1011,965,9934,106,105,9697,196,4869,9935,9936,1724],"class_list":["post-33353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-en","category-news","tag-arbitrum","tag-base","tag-decentralized-sequencers","tag-eth","tag-ethereum","tag-l2beat","tag-layer-2","tag-metis","tag-sinelnikova","tag-the-surge","tag-vitalik-buterin"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Layer-2 Networks Need Decentralized Sequencers - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/layer-2-networks-need-decentralized-sequencers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Layer-2 Networks Need Decentralized Sequencers - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"As the Ethereum Layer-2 (L2) ecosystem continues to grow, with most of Ethereum\u2019s daily economic activity now taking place on L2 solutions, the issue of centralization remains. 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