Ethereum layer-2 blockchain Linea is underneath hearth after it revealed that it unilaterally stopped block manufacturing as a result of Velocore, a decentralized change working on its community, was hacked.
Over the weekend, 700 ETH—equal to over $2.6 million—was moved off the layer-2 community through an unnamed third-party bridge due to the Velocore hack. As of press time, a complete of $6.8 million was misplaced from Volocore. Linea defined that its incapability to achieve the DEX staff instantly prompted it to “halt the sequencer to prevent additional funds bridging out.”
It added:
“The sequencer was paused from block 5081800 and 5081801. During this pause, we gave the Velocore team time to support their efforts of triaging the vulnerability. We also censored the hacker’s addresses. This significantly reduced the ecosystem impact on Linea users.”
Linea justified its determination by mentioning that the hacker “was beginning to sell a large sum of tokens into ETH. This would have created other issues in the ecosystem for users beyond the liquidity pool-draining exploit.”
Group slams Linea
The crypto group has strongly criticized Linea’s determination to halt block manufacturing, arguing that it violated the ethics of the rising business.
Whereas acknowledging the rationale behind the transfer, Mert Mumtaz, the CEO of Helius Labs and a vocal supporter of Solana, expressed apprehensions about its long-term impression. He stated:
“Consensys’ L2 unilaterally turned off the chain yesterday Reasonable given the circumstances but also a clear sign that this is not crypto.”
Echoing this sentiment, Alex Gluchowski, CEO of Matter Labs, emphasised the essential significance of decentralization for all sequencers. He urged all layer-2 options to prioritize integrating decentralization into their platforms.
“Decentralizing the sequencer isn’t optional. Every serious L2 stack must race to do this first,” Gluchowski remarked.
Decentralization objectives
In the meantime, Linea stated it stays dedicated to decentralizing its community and sequencer to forestall a recurrence of this occasion. It said:
“Linea’s goal is to decentralize our network – including the sequencer. When our network matures to a decentralized, censorship-resistant environment, Linea’s team will no longer have the ability to halt block production and censor addresses – this is a primary goal of our network.”
The Consensys-backed blockchain additionally identified that almost all rival networks nonetheless depend on centralized technical operations to guard ecosystem members. Nevertheless, it added that its “core value [remains] a permissionless, censorship-resistant environment.”
