Base Ethereum Layer-2 Makes A Big Step Towards Decentralization: Here’s Why
Base is moving closer to decentralizing after releasing fault proofs on the Ethereum Sepolia testnet. This is huge for scaling layer-2.
Ethereum has a scaling problem. It is popular among developers, being the first (obviously), but can only process 15 transactions every second at optimum.
When ETH prices tick higher, Ethereum is prone to congestion, pushing gas fees to record levels. This gas fluctuation has been seen in the past bull cycles, and the impact is well tabulated.
Ethereum Scaling Challenges Fuel Sepolia Testnet Push
To address the high fees and scale the mainnet, there have been sidechains, of which Polygon leads by asset under management.
Though successful, Polygon trails Ethereum layer-2 scaling solutions like Arbitrum, OP, and the recent addition, Base.
The Base Network is a layer-2 scaling solution that uses the same technology stack as OP.
All transactions are “rolled” and processed off-chain before being confirmed on the mainnet.
The problem is that a centralized sequencer processes transactions. Even if you wanted to verify, there is no way to publicly verify whether all these transactions bundled off-chain are valid.
This is a big problem, an Achilles Heel for optimistic rollup platforms like Arbitrum, OP, and Base.
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Base Decentralizing: Launches Fault-Proofs In Sepolia Testnet
With a decentralized fault-proof system, it is easier to determine what goes on with transaction processing.
The good news is that all this is changing. We are not yet there, but there are baby steps.
Recently, Base, backed by Coinbase–the crypto exchange, announced the implementation of “fault proofs” on the Ethereum Sepolia testnet.
This trial will bring Base Layer 2 closer to what developers describe as “stage 1 decentralization.” This will also help eliminate the centralized sequencer.
Through fault proofs, it will be possible for anyone to challenge or propose changes to the state of transactions posted on the Base’s sequencer.
Those who doubt the validity of a posted transaction can challenge its authenticity without contacting centralized operators or the security council governing the sequencer.
By the end of the test, Base will join Arbitrum, the largest layer-2 by total value locked (TVL) according to L2Beat, in Stage 1.
(Source)
Arbitrum Leads The Way With Scaling Advancements
Although plans to fast-track the Arbitrum fault proofs to Stage 2 exist, this is a move in the right direction, pointing to accelerated development in Base.
Once Arbitrum implements “BOLD” in stage 2, their sequencer will be completely decentralized and governed by the community.
This evolution is only necessary.
Layer-2 platforms should have secure and decentralized sequencers to stay competitive and cement Ethereum’s foundational role in crypto, especially in light of tough competitors like Solana and the BNB Chain.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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