Layer 2 Scaling Is Eroding Crypto’s Trustlessness

Steven Pu, co-founder of Taraxa, argues that rollup-based layer 2 scaling solutions are undermining crypto’s core principle of trustlessness. He explains how these innovations have led to a centralization of power within the blockchain ecosystem and highlight risks such as single-point failures and limited transparency. While optimistic and zero-knowledge rollups offer potential for execution correctness, they also introduce vulnerabilities regarding inclusion, ordering, and censorship resistance due to reliance on a single sequencer for decision-making. This dependence on centralized control undermines the integrity of crypto’s decentralized model.