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The recent hack on Ethereum layer-2 blockchain Linea, which led to the transfer of over $2.6 million in Ether (ETH) from the platform, underscores the urgent need for greater decentralization among layer-2 solutions, according to Alex Gluchowski, CEO of Matter Labs.

Linea, launched by ConsenSys, faced a security breach on June 2 when a hacker exploited Velocore, a decentralized exchange built on Linea. In response, Linea temporarily halted block production to mitigate further damage, highlighting centralized controls vulnerabilities.

The exploit involved moving 700 Ether (worth over $2.6 million) off Linea using a third-party bridge. Block production was paused between blocks 5081800 and 5081801.

The hack was first detected by Hexagate, which identified the stolen funds, vulnerable smart contracts, and exploiter addresses. Due to time zone differences, Linea could not immediately contact Velocore.

Gluchowski emphasized the necessity of decentralizing the sequencer, a critical component of layer-2 networks, stating, Decentralizing the sequencer isnt optional. Every serious L2 stack must race to do it first. Matter Labs, the company behind zkSync, is one of Lineas competitors.

Linea resumed block production, but halting the zkEVM blockchain highlighted the urgent need for decentralization, as noted by Gluchowski.

Declan Fox, Lineas product lead, acknowledged the importance of decentralization and assured that Linea is on track to achieve this more quickly than many of its peers. Given that many Rollup frameworks more than 2 years older than us are no further ahead, Im pretty delighted with our pace, Fox responded.

Despite the hack, Linea is pushing forward with its ambitious The Linea Voyage: Surge campaign, aiming to increase the total value locked (TVL) on the platform to $3 billion. Currently, around $1.2 billion is locked on Linea, according to L2BEAT.

Some critics have questioned the wisdom of setting such lofty goals after the hack. However, Linea defended its decision to halt the sequencer, stating it was a necessary step to protect users funds.

Also Read: Crypto Hacks Surge 666% & Losses $574.6 Million in May 2024

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Linea Exploit Reveals Decentralization Flaws in Ethereum L2s - Crypto Times