TLDR
- Vitalik Buterin defends Base’s decentralization, calling it a non-custodial Layer 2 extension of Ethereum.
- Base’s sequencer does not have custody over user funds, ensuring safety and withdrawal rights.
- Buterin argues that Base’s design uses centralized features for user experience while ensuring security.
- Coinbase’s Jesse Pollak explains that Base’s sequencers act as traffic controllers, not matching engines.
Ethereum co-founder Vitalik Buterin has entered the debate over the Coinbase-backed Base network, defending its decentralized design against claims of centralization. In a series of posts, Buterin emphasized that Base is an extension of Ethereum, operating as a Layer 2 solution that leverages centralized features to enhance user experience while maintaining a strong tie to Ethereum’s decentralized base layer for security.
Buterin’s comments came in response to recent skepticism regarding Base’s sequencer, the component responsible for ordering and batching transactions before they are sent to Ethereum for final settlement. Critics had raised concerns that the sequencer, being centralized, could pose risks similar to those of a centralized exchange. However, Buterin firmly rejected these claims, stating that Base remains non-custodial and that users retain full control over their funds.
Base’s Sequencer and Its Non-Custodial Nature
One of the main points of contention around Base was the function of its sequencer, which critics likened to the role of matching engines in centralized exchanges. Vitalik Buterin clarified that Base’s sequencer does not control or hold user funds. Instead, it simply orders transactions before submitting them to Ethereum for validation.
In his response, Buterin explained that the sequencer could not block withdrawals or steal funds, highlighting Ethereum’s contract logic that guarantees users can exit the Layer 2 network even if the operator fails.
“But Base is doing things the right way: an L2 on top of Ethereum,” Buterin said. “It uses its centralized features to provide stronger UX features while still being tied into Ethereum’s decentralized base layer for security.” He reinforced that Layer 2 networks, like Base, are non-custodial by design, with Ethereum L1’s smart contract logic ensuring users’ funds remain secure.
Coinbase’s Response and the Role of Sequencers
Base co-founder Jesse Pollak further clarified the role of sequencers, explaining that they are not akin to exchange matching engines. Pollak described sequencers as neutral “traffic controllers,” whose job is to ensure smooth processing of transactions in the network.
Unlike matching engines in exchanges that pair buy and sell orders, sequencers merely determine the order of transactions and send them to Ethereum for final settlement.
Pollak emphasized that users could choose to transact directly on Ethereum, maintaining decentralization and censorship resistance, even if they interact with Base’s sequencer. He argued that this structure allows Base to scale Ethereum without compromising its neutrality or decentralization, making it a critical piece of infrastructure for the on-chain economy.
