Coinbase Layer-2 network, Base chain, experienced an outage on Tuesday, temporarily halting block production.
While the situation was resolved shortly after, it rekindled concerns over sequencer centralization.
Base Chain Temporary Outage: Everything Users Need to Know
Base chain suffered an outage on Tuesday, causing a temporary halt in block production. Data on Basescan, the Base chain explorer, shows that the Base network did not produce a block for 20 minutes.
Base Chain Outage. Source: BasescanNotably, the chain halt was only localized to block production, with all other services operating normally.
When Base blockchain halts block production, it does not record new transactions, causing delays. As of this publication, neither Base nor its creator, Jesse Pollak, had addressed the incident to explain what happened.
Reports attribute the incident to an anomaly in the Base network, but it is imperative to note that this incident ends nearly two years of uninterrupted operation. Some users likened it to Solana, which has experienced multiple outages over the years.
“Base went down for 23 mins and not a peep. If it were Solana, you’d never hear the end of it,” one user remarked.
Meanwhile, the incident validates the concerns about centralized sequencers. Base’s reliance on a single sequencer run by the Coinbase exchange creates a single point of failure.
Based on this outlook, Base chain’s recent outage raises questions about the decentralization claims of such networks.
Sequencers Under Scrutiny After Base Outage Sparks Centralization Debate
Attention has turned to a critical but often overlooked component of Layer-2 (L2) blockchains, the sequencer.
The sequencer is responsible for ordering, verifying, and batching transactions before anchoring them to Ethereum. It acts as the “air traffic controller” for roll-up networks like Base, Arbitrum, and Optimism.
While these systems offer faster and cheaper transactions, critics warn that today’s sequencers are centralized, typically run by the network’s founding company.
This setup introduces potential single points of failure, censorship risks, and vulnerabilities to regulatory pressure.
Coinbase, for instance, runs Base’s sequencer, which analysts estimate could generate $30 million in annual revenue.
“BASE has been sending all sequencer fees to Coinbase since launch. We don’t know if they sold, but we do know they didn’t deploy those funds on Base or keep them on-chain. The lack of transparency makes it fair to assume they sold. Not very Ethereum-aligned of them,” wrote DeFi researcher Santisa in a recent post.
Coinbase’s Q2 2025 earnings did not explicitly state Base’s transaction volume. However, the report noted a 55% rise in Base transaction volume quarter-over-quarter. Other transaction revenue, including Base, was $34 million, down 35% from Q2, attributed to lower sequencer fee revenue.
“Why fast interop matters for rollup–it’s simply a must, in order to stay competitive against exchange rollups like Base. – Coinbase <> Base is extremely fast because there’s no external trust, since Coinbase trusts its own sequencer. – Coinbase sets pessimistic delays for all other rollups other than Base, with the notable exception being the Avalanche C-Chain (which is relatively decentralized),” wrote Wei Dai, another DeFi researcher.
It points to significant Base platform potential, which could make Coinbase an even bigger powerhouse in the DeFi space.
Despite ongoing discussions about decentralizing sequencers, most leading roll-ups have yet to implement such changes.
As the demand for roll-up solutions grows, the pressure is mounting for Ethereum’s layer 2 networks to align with the blockchain ethos of trustless and distributed infrastructure.
