"Hack on Ethereum Layer-2 Blockchain Linea Highlights Need for Decentralization"

• Linea halted block production after hack, emphasizing need for decentralization.
• Hacker exploited Linea-based Velocore, withdrawing over $2.6 million in Ether.
• Linea paused sequencer to prevent further fund bridging, highlighting centralization risks.
• Gluchowski urges Layer 2 networks to prioritize decentralization to avoid future incidents.
• Linea plans to decentralize network, including sequencer, to prevent censorship and halts.
• Industry moves towards decentralization to avoid single points of failure and censorship issues.

Summary :
Ethereum layer-2 blockchain Linea recently halted block production after being hacked, leading to the unauthorized withdrawal of over $2.6 million in Ether. The incident highlights the importance of decentralization for layer-2 firms, according to Alex Gluchowski, CEO of Matter Labs. Linea has since resumed block production, but Gluchowski emphasized that decentralizing the sequencer is crucial for all serious layer-2 networks. Linea's product lead, Declan Fox, agreed that decentralization is necessary and stated that the network is on a solid path towards achieving it. The hack on Linea-based decentralized exchange Velocore prompted Linea to take action to protect users and prevent further funds from being stolen. Linea plans to decentralize its network, including the sequencer, to prevent similar incidents in the future. While many layer-2 solutions on Ethereum remain centralized, there is a growing push towards decentralization. The incident also highlights the common practice of halting blockchains to prevent hackers from transferring funds, even among relatively more decentralized networks.

Sources :

- CoinTelegraph
- TheBlock