Layer-2 Networks Must Adopt Decentralized Sequencers, Says Metis Co-Founder

As the Ethereum layer-2 (L2) ecosystem continues to grow, it faces a persistent issue of centralization that threatens to undermine its goals of decentralization, censorship resistance, and security. Elena Sinelnikova, co-founder of the Metis layer-2 network, recently emphasized the need for L2 solutions to incorporate decentralized sequencers to address this challenge.
Centralization Remains a Key Issue in Layer-2 Solutions
As of December 2024, there are 118 layer-2 scaling solutions listed on L2Beat, and Ethereum’s L2 ecosystem now processes the vast majority of Ethereum’s daily transactions. Despite the impressive growth of L2 solutions, many of these networks remain centralized in terms of transaction sequencing. Sinelnikova pointed out that most L2 networks rely on a single sequencer, which poses a risk of centralization. This centralization undermines the very principles that decentralized technologies like Ethereum aim to uphold.
Sinelnikova explained, "About 97% of all Ethereum transactions are on layer-2s — so almost all of them. Layer-2 solutions were never meant to be decentralized solutions. They are centralized solutions with one sequencer." While users may think they are transacting on decentralized platforms, they are often unaware that these platforms are controlled by a single entity or a limited group, meaning they can potentially be censored or shut down at any time.
The Need for Decentralized Sequencers
In order to enhance the anti-fragility and censorship resistance of layer-2 networks, Sinelnikova advocates for decentralized sequencers. By distributing control of the sequencing process across multiple parties, Ethereum’s L2 solutions would better align with the decentralized ethos of the Ethereum blockchain.
Sinelnikova also discussed efforts by the Ethereum Foundation to promote decentralization through initiatives that encourage interoperability among L2 solutions. However, she believes that implementing decentralized sequencers would be a simpler and more direct way to achieve true decentralization, without the need to overhaul the entire L2 ecosystem.
Continued Growth of Ethereum Layer-2 Networks
Sinelnikova’s comments come at a time when the Ethereum layer-2 ecosystem is experiencing explosive growth. As Ethereum’s base layer continues to face scalability challenges, L2 networks have emerged as a key solution to increase throughput and reduce congestion. In October 2024, Ethereum co-founder Vitalik Buterin outlined ambitious plans to increase Ethereum’s transaction throughput to 100,000 transactions per second (TPS), a key component of Ethereum’s roadmap known as "The Surge."
"The Surge" is designed to enhance interoperability between Ethereum’s L2 solutions, paving the way for a more scalable and interconnected blockchain ecosystem. As part of these efforts, Ethereum aims to reach a total of 100,000 TPS across its base layer and layer-2 networks, further solidifying the role of L2s in Ethereum’s future scalability.
Layer-2 Growth and Market Impact
The Ethereum layer-2 ecosystem is already showing signs of rapid expansion. In November 2024, L2 networks processed three times as much daily transaction data as they did in March 2024, reflecting the growing adoption of L2 scaling solutions. This surge in activity has also contributed to a rise in transaction fees on the Ethereum base layer, helping to reverse a prolonged period of low revenues for the Ethereum network.
According to L2Beat data, Ethereum’s L2 networks reached $51.5 billion in total value locked (TVL) in November 2024, marking a 205% year-over-year growth. By early December, TVL surpassed $60 billion, with Arbitrum One and Base leading the charge, recording approximately $21.5 billion and $14.2 billion in TVL, respectively.
Conclusion
The Ethereum layer-2 ecosystem is undergoing rapid growth, with increasing transaction volumes and a rising total value locked in L2 solutions. However, as these networks scale, they must confront the issue of centralization to ensure long-term sustainability. The adoption of decentralized sequencers is an essential step toward achieving the true decentralization and censorship resistance that the Ethereum community strives for. With more L2 networks expected to emerge in 2025, it is crucial that these solutions address centralization risks to maintain their integrity and continue to drive Ethereum’s scalability ambitions forward.
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