Ethereum Ecosystem Grapples With Decentralization Metrics as Base Prepares Azul Upgrade

Gate News message, April 28 — The Ethereum ecosystem is navigating key questions about decentralization standards and security, with significant developments across layer 2 networks and research frameworks this week.

Research & Standards

L2BEAT has proposed revising rollup evaluation metrics to better assess decentralization in an era of permissionless sequencers. The catalyst is Aztec Alpha Mainnet, which operates as the first large-scale permissionless decentralized rollup with approximately 4,000 sequencers. L2BEAT introduced the T99_k metric, which measures how long it takes for a transaction to be included on-chain with 99% probability even if the top operators collude to block it. Under the proposal, Stage 2 rollups would require 99% transaction inclusion within 30 days despite top-4 operator collusion, while Stage 1 would require inclusion within 7 days. L2BEAT emphasized that sequencer collateral size, hardware requirements, token liquidity, and operator diversity must also be evaluated alongside inclusion time.

The Kelp DAO rsETH hack has intensified debate over omnichain token safety. Developer donnoh.eth warned against embedding third-party bridges as default functionality, citing bridge compromise risks to entire token ecosystems. Agora’s Nick Van Eck countered that layered security measures—multiple verification mechanisms, transfer limits, and real-time monitoring—can sufficiently protect omnichain tokens. The core dispute centers on whether to structurally separate risks from the outset or defend against them through layered safeguards. Van Eck also noted that some tokens appear to burn and re-mint across chains but actually lock tokens on Ethereum while issuing wrapped versions elsewhere.

Analysis of the rsETH hack reveals attackers compromised RPC nodes that Layer Zero’s DVN relied upon and launched DDoS attacks on backup RPC nodes, enabling them to create fake bridge transactions on low-liquidity Unichain and mint fraudulent rsETH on Ethereum. Ethereum verification methods face limitations when RPC infrastructure itself is compromised, while blob data re-verification—a proposed safeguard—can require over 10 minutes, too slow for real-time bridge operations.

Ecosystem Updates

Base is preparing its Azul upgrade, the network’s first major upgrade since exiting Superchain. Azul includes Fusaka EVM modifications, an independent Reth/Kona client, and a dual-proof system combining trusted execution environments (TEE) and zero-knowledge proofs, enabling hybrid optimistic-ZK rollup functionality for faster withdrawals when needed. Base has also announced Glamsterdam EIP and flashblock access list deployment by June 30, with native account abstraction expected by August 31.

Arbitrum’s Security Council froze approximately 30,000 ETH in hacker funds from the rsETH incident by forcing transfer to a burn address without hacker authorization. This action highlighted that Arbitrum’s 9-of-12 multisig security committee can unilaterally move L2 funds—a capability unavailable in full Stage 2 rollups, where intervention requires proven on-chain bugs.

Sunnyside Labs launched Privacy Boost, an enterprise on-chain privacy tool combining ZK and TEE technologies, now live on OP Mainnet and adopted as OP Stack’s official privacy solution. The tool enables enterprises to maintain self-custody while enabling rapid balance verification and selective regulatory data disclosure. Unlike competing solutions such as ZKSync Privium or Canton, Privacy Boost operates as smart contracts on public chains rather than requiring separate chains, preserving liquidity and DeFi composability.

Age Chain, an OP Stack-based layer 2 operated by Riot Games (formerly Arena Z), will shut down on May 31. The closure reflects growing challenges L2 networks face in sustaining user bases, liquidity, and operational funding.

Weekly Ethereum Metrics (April 20–26)

Annual inflation rate: 0.775%. Weekly net supply: 18,057.90 ETH. Staking ratio: 31.53%. Stablecoin market cap: $166.729 billion. U.S. spot ETF net inflows (April 20–24): $155.1 million.