Key Points

| Aspect | Details | | --- | --- | | Incident Date | June 2 | | Stolen Amount | Over $2.6 million (700 ETH) | | Hacker Target | Velocore DEX | | Sequencer Pause | Blocks 5081800 to 5081801 | | Key Figures | Alex Gluchowski, Declan Fox | | Future Goals | Decentralize Linea, Increase TVL to $3 billion | | Current TVL | $1.2 billion | | Consensys Launch | August 2023 | | Current Partners | Over 50 | | Ether Bridged | Over $26 million |

The Incident

On June 2, Linea blockchain, associated with Ethereum's Layer 2 solutions, encountered a major setback when over $2.6 million worth of Ether (ETH) was stolen from the platform. The theft occurred through Velocore DEX, leading Linea to halt block production briefly to contain the breach. Linea promptly communicated this incident via a post on X platform.

Reactions and Plans

Alex Gluchowski, Matter Labs' CEO, emphasized the criticality of decentralization, stressing that all serious Layer 2 solutions, including Linea, must prioritize it. Declan Fox, Linea's product lead, echoed this sentiment and revealed Linea's ambitious plan to boost its Total Value Locked (TVL) to $3 billion, currently standing at $1.2 billion.

Decision Making

Halting the sequencer was described as a necessary step by Linea to prevent further financial losses post the hack. Hexagate, the cybersecurity firm, assisted in tracking the stolen funds and identifying the hacker's addresses. Despite challenges, Linea remains committed to advancing its decentralization efforts.

Network Challenges

The incident underscores the challenges in decentralizing Ethereum Layer 2 solutions. While the temporary halting of the sequencer serves as a safety net, the journey towards complete decentralization is crucial to avoid vulnerabilities.

Collaborative Efforts

Velocore is collaborating with external networks to reimburse affected users, affirming Linea's commitment to network security. Consensys, which launched Linea in August 2023, has made significant progress with over 50 partners and $26 million in Ether linked.

Overall Landscape

The incident reflects the ongoing struggle for decentralization within Layer 2 solutions. Despite progress, like Coinbase's centralized Base, industry players acknowledge the imperative of gradual decentralization for sustainability.

Recap

• Incident: Linea suffered a $2.6 million hack via Velocore DEX.
• Response: Sequencer pause was a proactive measure to mitigate losses.
• Decentralization: Industry leaders emphasize its importance.
• Future Plans: Linea aims to decentralize and raise TVL to $3 billion.
• Current Status: Most Layer 2 solutions, including Linea, are centralized.

The Linea incident serves as a strong reminder of the essential journey towards decentralization in Ethereum's Layer 2 realm, highlighting the significance of prioritizing network resilience and security.