- Buterin confirmed Base cannot seize or block funds, as Ethereum Layer 1 contracts retain final authority over assets.
- Coinbase explained sequencers only order transactions, while users can bypass them and submit directly to Ethereum validators.
- Safeguards like StarkEx escape hatches and Soneium cases show Layer 2 users can withdraw funds even if operators halt activity.
Ethereum co-founder Vitalik Buterin has addressed concerns about the security of Coinbase’s Layer 2 network Base. Speaking on the X platform, he stressed that Base operates without taking custody of user funds.
According to Buterin, Ethereum’s Layer 1 contracts hold final control over assets, ensuring withdrawals remain possible even if Base shuts down. His comments followed ongoing debate about whether Layer 2 sequencers and operators act as custodians, a claim he directly rejected. He emphasized that Base is designed to provide efficiency without compromising Ethereum’s decentralization and user safeguards.
Ethereum Layer 1 Maintains Authority
Buterin explained that Base integrates centralized elements to improve user experience but cannot block or seize assets. He referenced standards tracked by analytics platform L2beat, which confirm that Layer 2 operators do not control withdrawals or balances.
To demonstrate this, he pointed to Ethereum’s contract logic that guarantees Layer 1 maintains authority over all funds. If Base were to halt operations, users could withdraw directly through Ethereum without needing Base’s involvement. This design, Buterin noted, ensures user protection against operator interference.
Sequencer Role Clarified by Coinbase Team
The Coinbase team also clarified how sequencers function within Base. Jesse, a builder on the project, explained that sequencers order transactions before submitting them to Ethereum.
They process them in a first-in, first-out sequence to increase throughput and provide uniform ordering. However, users are not limited to sequencers and may bypass them by submitting transactions directly to Ethereum validators.
This structure preserves Ethereum’s censorship resistance while maintaining transaction efficiency. Jesse added that unlike exchanges, sequencers do not determine trade execution or asset pricing. Instead, decentralized applications such as automated market makers handle execution logic independently.
Safeguards in Layer 2 Networks
Buterin noted safeguards already tested in other Layer 2 platforms. He referenced “escape hatches” used in systems like StarkEx, which powers the trading platform dYdX. These mechanisms allow withdrawals directly through Ethereum transactions, even when an operator halts operations.
L2beat has confirmed that simplified tools exist to make this process accessible to users without technical expertise. Buterin also pointed to Soneium, Sony’s Layer 2 built on OP Stack, as another example.
When Soneium attempted to restrict certain token transactions in January, users bypassed restrictions by submitting directly through Ethereum. This case showed how operators cannot override Ethereum’s authority, reinforcing the non-custodial design of Layer 2s.
