Recent controversy surrounding the centralized sequencer on Base chain has sparked debate over whether it constitutes a power monopoly. While the Base team clarified that the sequencer is only responsible for transaction ordering, not matching, and received support from Vitalik Buterin, the core issue remains: a centralized sequencer poses risks like transaction censorship and MEV extraction. Data shows Base chain generates $87 million in annual revenue, highlighting its profit potential. Although decentralized sequencer technology is mature, decentralizing power implies challenging profit-sharing arrangements, making true decentralization difficult for Base in the short term. Achieving sequencer decentralization remains a critical challenge for the future.

Chain Fame Brings Scrutiny

With fame comes scrutiny. Recent FUD (Fear, Uncertainty, Doubt) targeted at Base chain eventually led to Vitalik Buterin stepping in to defend Base.

Currently, it seems no major KOLs in the Chinese Crypto Twitter space are discussing this. This thread will briefly break down the "Base FUD Gate" incident.

The Focus of the FUD

The focal point of the FUD is: Because Base operates a centralized sequencer, it is essentially an unlicensed centralized securities exchange.

Coinbase's CLO and Base's lead responsible person offered strong rebuttals:

The core function of the sequencer is transaction ordering, not transaction matching. Transaction matching is achieved by smart contracts in a decentralized manner. Therefore, Base, which operates a centralized sequencer, is not a centralized exchange in the traditional sense.

"Base is not a casino, but that doesn't mean Base is decentralized." I'll offer my preliminary thoughts.

Regarding "Base is not a casino," both executives provided good explanations. Here, the focus is on "**but that doesn't mean Base is decentralized**."

The core function of the sequencer is transaction ordering. Simply put, user transactions on L2 enter the mempool (where transactions are initially unordered). The sequencer orders these transactions, compresses them into an ordered batch, and sends them to Ethereum's Data Availability (DA) layer.

Base operates an official, centralized sequencer. In a sense, this centralization grants the sequencer significant autonomy over transaction ordering. It could potentially order transactions arbitrarily to maximize its own arbitrage opportunities, extract MEV value, delay user transactions, or even censor them entirely.

According to data from growthepie, the Base chain has earned a staggering $5.11 million in revenue in the past month. Over the past year, this figure reaches as high as $87 million, far exceeding the revenue of the second-ranked chain, Arbitrum. The officially operated Base sequencer acts like an invisible hand, quietly extracting enormous value.

The Path to Decentralization

Decentralized sequencers are not a new concept; it's even a relatively mature field. However, decentralization inevitably means distributing power and, consequently, sharing profits. Is the Base chain willing to sacrifice the benefits of being a "super entity" for the grand cause of L2 decentralization?

Currently, it seems unrealistic.

"Not being a casino" does not mean Base is sufficiently decentralized. The path to decentralizing the sequencer remains long and arduous.

Recent controversy surrounding the centralized sequencer on Base chain has sparked debate over whether it constitutes a power monopoly. While the Base team clarified that the sequencer is only responsible for transaction ordering, not matching, and received support from Vitalik Buterin, the core issue remains: a centralized sequencer poses risks like transaction censorship and MEV extraction. Data shows Base chain generates $87 million in annual revenue, highlighting its profit potential. Although decentralized sequencer technology is mature, decentralizing power implies challenging profit-sharing arrangements, making true decentralization difficult for Base in the short term. Achieving sequencer decentralization remains a critical challenge for the future.

Chain Fame Brings Scrutiny

With fame comes scrutiny. Recent FUD (Fear, Uncertainty, Doubt) targeted at Base chain eventually led to Vitalik Buterin stepping in to defend Base.

Currently, it seems no major KOLs in the Chinese Crypto Twitter space are discussing this. This thread will briefly break down the "Base FUD Gate" incident.

The Focus of the FUD

The focal point of the FUD is: Because Base operates a centralized sequencer, it is essentially an unlicensed centralized securities exchange.

Coinbase's CLO and Base's lead responsible person offered strong rebuttals:

The core function of the sequencer is transaction ordering, not transaction matching. Transaction matching is achieved by smart contracts in a decentralized manner. Therefore, Base, which operates a centralized sequencer, is not a centralized exchange in the traditional sense.

"Base is not a casino, but that doesn't mean Base is decentralized." I'll offer my preliminary thoughts.

Regarding "Base is not a casino," both executives provided good explanations. Here, the focus is on "**but that doesn't mean Base is decentralized**."

The core function of the sequencer is transaction ordering. Simply put, user transactions on L2 enter the mempool (where transactions are initially unordered). The sequencer orders these transactions, compresses them into an ordered batch, and sends them to Ethereum's Data Availability (DA) layer.

Base operates an official, centralized sequencer. In a sense, this centralization grants the sequencer significant autonomy over transaction ordering. It could potentially order transactions arbitrarily to maximize its own arbitrage opportunities, extract MEV value, delay user transactions, or even censor them entirely.

According to data from growthepie, the Base chain has earned a staggering $5.11 million in revenue in the past month. Over the past year, this figure reaches as high as $87 million, far exceeding the revenue of the second-ranked chain, Arbitrum. The officially operated Base sequencer acts like an invisible hand, quietly extracting enormous value.

The Path to Decentralization

Decentralized sequencers are not a new concept; it's even a relatively mature field. However, decentralization inevitably means distributing power and, consequently, sharing profits. Is the Base chain willing to sacrifice the benefits of being a "super entity" for the grand cause of L2 decentralization?

Currently, it seems unrealistic.

"Not being a casino" does not mean Base is sufficiently decentralized. The path to decentralizing the sequencer remains long and arduous.