Vitalik Buterin says Base, a Coinbase-operated Layer 2 (L2), is a non-custodial “stage 1” rollup that cannot steal user funds. Base settles on Ethereum and allows withdrawals to the mainnet, meaning a centralized sequencer does not equate to custodial control of user assets.
Base is a Layer 2 rollup with on-chain settlement on Ethereum, enabling user withdrawals to the mainnet.
Critics point to a centralized sequencer and governance powers; proponents highlight non-custodial withdrawal guarantees.
Base TVL rose ~10x since early 2024 to nearly $5B, while recent fee and revenue metrics show L2 outperformance versus L1.
Base Layer 2 defended by Vitalik Buterin: Base is non-custodial and allows mainnet withdrawals — read latest facts, TVL data and expert views. Learn more.
What is Base Layer 2?
Base Layer 2 is a rollup-style Ethereum L2 designed for low-cost transactions and on-chain settlement on Ethereum. It uses a sequencer for transaction ordering but, as Vitalik Buterin emphasizes, remains non-custodial: users can exit to the Ethereum mainnet if the L2 becomes unavailable.
Why did Vitalik Buterin defend Base?
Buterin addressed claims that Base functions as an “unregistered securities exchange” or could “rug” users. He clarified that Base does not hold custody over users’ funds and that its security model is anchored to Ethereum’s settlement guarantees. This means assets locked on Base remain withdrawable to the L1 under the rollup model.
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How does Base protect user funds if the sequencer is centralized?
Base protects funds through on-chain settlement and withdrawal mechanisms to Ethereum. Even with a centralized sequencer, the rollup’s state can be verified and funds withdrawn on-chain if the sequencer stops responding. This withdrawal guarantee is the core reason some experts classify Base as a non-custodial, stage-1 L2.
What are the main criticisms of Base?
Critics focus on sequencer centralization and governance override risks. Observers warn that security councils or multisig powers could freeze or delay withdrawals in practice, even if the protocol allows eventual exits. These concerns center on operational centralization rather than the cryptographic withdrawal guarantees.
Vitalik noted that certain voting powers remain outside L2 councils in some rollups, which strengthens non-custodial claims. Still, debates continue on whether governance constructs and emergency powers introduce practical custody risks.
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Supporters argue that Base aligns with Ethereum’s L2 security model: cryptographic proofs and the ability to withdraw to L1 are fundamental safeguards. Max Resnick and others recommend targeted regulation at sequencing layers, not blanket claims of custodial exchange status.
Critics counter that real-world governance decisions can delay or block user access. Joseph Lubin and some protocol researchers warn that divergence from the mainnet roadmap or excessive central control could create systemic risk.
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