Layer 2 decentralization refers to the distribution of control and operational responsibilities among multiple independent entities within a blockchain scaling solution. This includes decentralizing sequencers, provers, and other key components to prevent single points of failure, censorship, or malicious manipulation. A higher degree of decentralization enhances the security and censorship resistance of the Layer 2 network.
Context
Layer 2 decentralization is a prominent and ongoing discussion within the blockchain community, as many current rollup implementations rely on centralized sequencers for efficiency. The primary debate concerns how to achieve robust decentralization without sacrificing the performance gains that Layer 2 solutions provide. Future developments will likely involve innovative protocol designs and economic incentives to encourage a diverse set of participants to operate Layer 2 infrastructure.
New cryptographic primitives like Proof of Luck and Proof of Download secure Layer 2 decentralization and data integrity, fundamentally mitigating MEV and data withholding.
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