Justin Bons, founder of Cyber Capital, has criticised leading Layer-2 (L2) solutions on Ethereum (CRYPTO:ETH), calling them a "dystopian nightmare of centralisation."

He highlights that networks like Arbitrum (CRYPTO:ARB), Base, and Optimism (CRYPTO:OP) are plagued by centralisation risks, such as "multi-sig" controls and centralised sequencers, which could allow operators to control user funds and manipulate transactions.

Bons points out specific vulnerabilities, including the potential for centralised authorities to exploit maximal extractable value (MEV) and censor transactions.

His critique has sparked mixed reactions, with some in the crypto community agreeing that the economic incentives for these L2s favor centralisation.

Bons also emphasises the misaligned incentives within venture capital investments, prioritising short-term gains over long-term decentralisation.