Rollup Centralization Risk

Definition ∞ Rollup centralization risk describes the potential for increased control by a single entity or a small group within a blockchain rollup solution. Rollups are layer-2 scaling solutions that process transactions off-chain and then submit a summary to the main chain. Centralization risk arises if a single operator controls the sequencer that orders transactions, the prover that generates validity proofs, or the upgrade mechanism. Such control could lead to censorship, manipulation, or a single point of failure, compromising the rollup’s integrity.
Context ∞ Rollup centralization risk is a prominent concern in news surrounding blockchain scaling and the future of layer-2 solutions. The critical discussion involves balancing the efficiency gains of rollups with the need to maintain decentralization and censorship resistance. Projects are actively researching and implementing decentralized sequencers and more distributed governance models to mitigate these risks.