Bitrabo Editorial
Justin Bons, the founder of Cyber Capital, has raised concerns about the current Layer-2 (L2) solutions on Ethereum. He described networks like Arbitrum, Base, and Optimism, intended to enhance Ethereum’s scalability, as a “dystopian nightmare of centralization.”
Issues with L2 Solutions
Bons criticized various L2 solutions, including Arbitrum, Base, Optimism, Blast, ZKSync, Linea, and Mantle, for centralization risks that could give network operators control over user funds. He highlighted vulnerabilities such as multi-sig controls and centralized sequencers that could be exploited for profit or to freeze funds.
Specific features within networks like Arbitrum and Base, such as multi-sig controls and permissioned proposers, were pointed out by Bons as factors that could grant centralized authorities access to user funds.
Bons also mentioned concerns about Optimism and other networks where centralized operators could exploit maximal extractable value (MEV) and potentially censor transactions.
Moreover, networks like Blast were criticized for mechanisms that could freeze user funds and issues related to censorship by centralized sequencers.
Economic Incentives and Design Choices
Responses to Bons’ critique varied within the crypto industry. Some, like DBCrypto, supported Bons’ claims and questioned the economic incentives for L2 solutions to adopt a shared sequencer model, considering the substantial earnings involved.
Bons emphasized the broader implications of design choices in these networks, highlighting a lack of consideration for social and economic impacts. He also discussed misaligned incentives, particularly in venture capital investments, that prioritize short-term gains over long-term sustainable and decentralized development.
Currently, ETH is trading at $3,049.