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smart-contract-auditing-and-best-practices
Blog

Why Sidechains and Layer 2s Introduce New Attack Vectors for Games

Game developers flock to L2s for scalability, but inherit fragmented security models. This analysis dissects the novel risks—from delayed finality to sequencer centralization—that threaten in-game asset integrity and player guarantees.

introduction
THE NEW FRONTIER

Introduction

Scaling solutions for blockchain games introduce novel security risks that fundamentally alter the threat model for developers and players.

The Attack Surface Expands. Every new chain or rollup creates a separate security domain. A game's security is now the weakest link in a chain of bridges, sequencers, and data availability layers, not just the base layer consensus.

Sovereign Execution Changes Everything. A game on Arbitrum or Immutable X delegates execution to a new set of validators. This creates sequencer censorship risks and exposes assets to potential bridge exploits like those historically seen on Nomad or Wormhole.

Fragmented Liquidity Becomes a Target. In-game economies rely on asset portability. Cross-chain asset transfers via LayerZero or Axelar become high-value targets for manipulation, directly threatening a game's core financial loops.

Evidence: The Ronin Bridge hack resulted in a $625M loss, demonstrating that auxiliary infrastructure, not the core game client, is now the primary vulnerability.

key-insights
NEW ATTACK SURFACES

Executive Summary

Gaming's shift to sidechains and L2s trades centralization for scalability, creating novel risks that traditional Web2 security models fail to address.

01

The Bridge is the Weakest Link

Asset bridges like Stargate and Axelar become centralized honeypots. A single exploit can drain the entire game economy, as seen with the Ronin Bridge hack ($625M).\n- Attack Vector: Compromised validator keys or flawed smart contract logic.\n- Impact: Irreversible loss of in-game assets and player trust.

$2B+
Bridge TVL at Risk
~5/9
Validator Threshold
02

Sequencer Censorship & MEV

Rollups like Arbitrum and Optimism rely on a single sequencer. It can front-run, censor, or reorder transactions, breaking game fairness.\n- Attack Vector: Sequencer exploits time-bandit attacks to steal high-value NFT mints.\n- Impact: Deterministic game logic fails, enabling cheating and ruining competitive integrity.

~12s
Forced Inclusion Delay
100%
Temporary Centralization
03

Fragmented Liquidity & Oracle Risk

Games on Polygon, Immutable, or Starknet fragment asset liquidity. Price oracles become unreliable, enabling manipulation.\n- Attack Vector: Flash loan attacks on a thin DEX pool to manipulate in-game asset prices.\n- Impact: Economic exploits where game state derived from faulty data leads to arbitrage at player expense.

-90%
Liquidity vs Mainnet
$1M
Manipulation Cost
04

Upgradeable Contracts as a Backdoor

L2s and sidechains use proxy patterns for rapid upgrades. A malicious or compromised upgrade can rug-pull the entire game.\n- Attack Vector: A single admin key compromise, as in the Nomad Bridge hack.\n- Impact: Total control loss; developers or attackers can alter core game rules or drain treasuries.

7 Days
Typical Timelock
1
Admin Key
05

Data Availability & State Validation Gaps

Validiums or certain L2s (StarkEx, zkSync) post proofs but not all data to Ethereum. Players cannot independently verify game state.\n- Attack Vector: Operator posts a valid proof but withholds critical data, hiding fraudulent state changes.\n- Impact: Players play a different game than they think, with assets that may be unwithdrawable.

Off-Chain
Critical Data
0
User Validation
06

The Interoperability Trap

Cross-chain messaging via LayerZero or Wormhole introduces trust assumptions. A game leveraging multiple chains inherits the failure of the weakest link.\n- Attack Vector: A message forging attack on one chain corrupts synchronized game state across all chains.\n- Impact: Contagion risk where an exploit on Chain A instantly compromises the economy on Chain B.

3+
Chains per Game
1
Failure Point Needed
thesis-statement
THE COMPROMISE

The Core Argument: L2s Trade Unified Security for Fragmented Risk

Layer 2 scaling solutions fragment the unified security model of Ethereum, creating new, complex attack surfaces for game developers.

L2s break security composability. A game on Ethereum inherits its full security budget. A game on Arbitrum or Optimism inherits the security of its specific sequencer and fraud/validity proof system. This creates isolated risk pools.

Bridge exploits are the primary attack vector. The value lock (TVL) in cross-chain bridges like Across, Stargate, and LayerZero is the target. A successful bridge hack severs the game's liquidity and asset layer from its logic layer.

Sequencer failure is a systemic risk. Centralized sequencers on networks like Arbitrum and Base are single points of failure for liveness. A prolonged outage bricks in-game transactions, a catastrophic failure mode for live-ops games.

Evidence: The $2 billion lost in bridge hacks (Chainalysis 2022) dwarfs losses from Ethereum L1 smart contract exploits. This quantifies the risk premium of fragmentation.

ATTACK SURFACE ANALYSIS

Security Model Comparison: Mainnet vs. Popular L2s for Gaming

This table compares the core security assumptions and risks of deploying a blockchain game on Ethereum Mainnet versus popular L2s, highlighting the new attack vectors introduced by scaling solutions.

Security Feature / Attack VectorEthereum MainnetOptimistic Rollup (e.g., Optimism, Arbitrum)ZK Rollup (e.g., zkSync Era, Starknet)Validium / Sovereign Chain (e.g., Immutable X, Polygon Miden)

Settlement & Data Availability Layer

Ethereum L1

Ethereum L1

Ethereum L1

Off-chain (e.g., Celestia, DACs)

Withdrawal / Exit Challenge Period

N/A (Native)

7 Days

N/A (ZK Proof)

N/A (No L1 Exit)

Sequencer Censorship Risk

Low (Decentralized Validator Set)

High (Single Sequencer by default)

High (Single Sequencer by default)

Critical (Centralized Operator)

State Validation Finality

~12.8 minutes (Ethereum Finality)

~7 days (via Fraud Proof Window)

~12.8 minutes (via Validity Proof)

None (Relies on Operator Honesty)

Prover/Validator Failure Risk

N/A

Fraud Proof Game (Requires Watchdog)

ZK Proof Validity (Cryptographic Guarantee)

Data Availability Proof (Requires Committee)

Native Bridge Exploit Surface

N/A

High (e.g., Wormhole, Nomad incidents)

High (Complex Trusted Setup & Prover)

Extreme (Custodial or Light-Client Based)

Cost of 51% Attack / Reorg

~$20B+ (ETH Staked)

~$0 (Sequencer can reorder tx freely)

~$0 (Sequencer can reorder tx freely)

~$0 (Operator controls chain)

Smart Contract Audit Surface

EVM Bytecode

EVM-Equivalent (Subtle Differences)

Custom ZK-VM (Novel Bugs)

Custom VM (e.g., Cairo, Miden VM)

deep-dive
THE NEW FRONTIER OF RISK

Deep Dive: The Three Novel Attack Vectors

Sidechains and L2s introduce systemic risks beyond smart contract exploits, creating novel attack surfaces for game economies.

Sequencer Censorship and MEV: The centralized sequencer on many L2s like Arbitrum or Optimism can censor or front-run in-game asset trades. This allows the sequencer operator to extract value from players by manipulating transaction order, a form of miner-extractable value (MEV) that directly targets game economies.

Bridge and Data Availability Failures: Games rely on bridges like Stargate or Across to move assets. A bridge hack or the underlying data availability layer (e.g., Celestia, EigenDA) failing to post data creates a hard fork scenario. Players on one chain lose assets while the game state diverges, shattering the unified game world.

Prover and Fraud Proof Liveness: Optimistic rollups like Optimism require a 7-day challenge window for fraud proofs. A malicious actor can attack the game state, and if the sole honest prover goes offline, the fraudulent state finalizes. This creates a liveness attack window where in-game theft is irreversible.

Evidence: The Ronin Bridge hack, which stole $625M from Axie Infinity, demonstrates the catastrophic impact of a single compromised bridge validator set, a risk now distributed across every chain a game deploys on.

risk-analysis
BEYOND MAINNET SECURITY

Concrete Risk Scenarios for Game Studios

Migrating to sidechains and L2s trades Ethereum's battle-tested security for performance, introducing novel systemic risks that can break your game economy.

01

The Sequencer Censorship Attack

A malicious or faulty sequencer (e.g., on Arbitrum, Optimism) can freeze your game by censoring transactions. Players cannot move assets or progress, causing immediate economic halt.

  • Risk: Centralized failure point controls all transaction ordering.
  • Impact: 100% downtime for on-chain game loops during an outage.
  • Example: Arbitrum Nova sequencer stalled for ~2 hours in 2023, freezing all games on the chain.
100%
Downtime Risk
~2hrs
Past Outage
02

The Bridge Liquidity Heist

Cross-chain asset bridges are prime targets. A bridge hack (see: Ronin Bridge, Wormhole, Poly Network) drains the game's treasury and player assets minted on the L2.

  • Risk: Bridge smart contract vulnerability or validator compromise.
  • Impact: Irreversible loss of all bridged in-game assets and governance tokens.
  • Vector: Often exceeds $100M+ per exploit, destroying game economies.
$100M+
Exploit Scale
Irreversible
Asset Loss
03

The Prover Failure in ZK-Rollups

ZK-Rollups (e.g., zkSync Era, Starknet) rely on a prover to generate validity proofs. If this system fails, the chain cannot settle to L1, stranding assets and state.

  • Risk: Complex cryptographic setup or hardware failure halts finality.
  • Impact: Assets are locked for days until proof generation is restored.
  • Reality: Early-stage ZK tech has unproven long-term reliability under game-level load.
Days
Lockup Time
Novel Risk
Tech Maturity
04

The Data Availability Crisis

Validiums or certain L2s (Immutable zkEVM, Arbitrum Nova) post data off-chain. If the Data Availability layer fails, the chain cannot be reconstructed, leading to permanent state loss.

  • Risk: Centralized data committee goes offline or acts maliciously.
  • Impact: Permanent loss of game state and NFT provenance.
  • Trade-off: This is the cost of ~90% lower fees compared to full rollups.
Permanent
State Loss
-90%
Fee Trade-off
05

The Governance Takeover on Appchains

Game-specific appchains (e.g., using Polygon Supernets, Avalanche Subnets) often have small, centralized validator sets. A hostile actor can buy voting power to pass malicious upgrades.

  • Risk: Low validator decentralization enables 51% attacks and governance capture.
  • Impact: Attacker can mint infinite assets, drain treasuries, or change core game rules.
  • Reality: Security scales with token value, creating a circular vulnerability for new games.
51%
Attack Threshold
Infinite Mint
Worst Case
06

The L1 Reorg Drags L2 State

If the base layer (e.g., Ethereum) experiences a deep reorg, it can force a reorg on the L2. This rewrites recent game history, causing rollbacks of player achievements and trades.

  • Risk: Inherited vulnerability from L1 consensus instability.
  • Impact: Hours of gameplay reverted, breaking leaderboards and finality guarantees.
  • Mitigation: L2s have ~7 day challenge periods for withdrawals, delaying true finality.
Hours
State Rewind
7 Days
Finality Delay
counter-argument
THE REALITY CHECK

Counter-Argument & Rebuttal: "The Risks Are Overstated"

The argument that game security is 'good enough' ignores the systemic fragility introduced by new trust assumptions.

The 'Secure Enough' Fallacy: The primary counter-argument posits that modern L2s like Arbitrum and Optimism are sufficiently secure. This ignores that their security is probabilistic and derived from Ethereum, not absolute. A game's entire economy becomes dependent on the sequencer's liveness and the validity proof system's correctness, introducing a new single point of failure.

Bridge Risk Is Inevitable: Proponents argue using native asset bridges like Arbitrum's canonical bridge mitigates risk. This is a false dichotomy. In-game economies require composability, forcing integration with third-party bridges like LayerZero or Across for cross-chain assets. Each bridge adds a new, untested trusted relay layer to the security stack.

Evidence of Fragility: The 2022 Nomad bridge hack ($190M) and recurring Ethereum L1 reorgs affecting L2 finality demonstrate that these are not theoretical risks. A game on a sidechain like Polygon PoS accepts a security model orders of magnitude weaker than Ethereum's, trading security for throughput in a live economic environment.

FREQUENTLY ASKED QUESTIONS

FAQ: Navigating the L2 Security Maze

Common questions about the unique security risks sidechains and Layer 2s introduce for blockchain games and their assets.

Your NFT's safety depends on the security of the L2's bridge and smart contracts, not just the mainnet. If a bug in the bridge contract on Arbitrum or Optimism is exploited, assets can be stolen or frozen. The canonical bridge is the most critical attack vector.

takeaways
SECURITY ARCHITECTURE

Key Takeaways for Protocol Architects

Scaling games via sidechains and L2s creates novel attack surfaces beyond the base layer's security model.

01

The Sequencer Centralization Attack

A malicious or compromised sequencer (e.g., on Arbitrum, Optimism) can censor or reorder game state transactions, enabling front-running, griefing, and asset theft. This is a single point of failure absent in decentralized L1s.

  • Attack Vector: Transaction ordering manipulation.
  • Impact: ~13s forced delay for censorship escape hatches, a lifetime in-game.
  • Mitigation: Explore Espresso Systems or Astria for shared sequencing.
1-of-N
Single Point
~13s
Delay to L1
02

The Bridge Liquidity Heist

Game assets become trapped if the canonical bridge is drained or the L2's state root is challenged successfully. This breaks the in-game economy and player trust.

  • Attack Vector: Bridge contract exploit or fraudulent state proof (see Nomad, Wormhole).
  • Impact: $100M+ potential loss per incident, isolating game assets.
  • Mitigation: Use native issuance on L2, or LayerZero / Axelar for omnichain liquidity with programmable security.
$100M+
Risk per Incident
100%
Asset Lock
03

The Data Availability (DA) Grief

If an L2 uses an external DA layer (e.g., Celestia, EigenDA) or validium mode, players can't prove their state if the DA fails, freezing assets. This is catastrophic for persistent game worlds.

  • Attack Vector: DA layer outage or withholding attack.
  • Impact: Indefinite game state freeze; players cannot exit.
  • Mitigation: Opt for Ethereum-calldata rollups for maximum security, or implement EigenDA with high quorums and slashing.
0%
Uptime on Fail
Indefinite
Freeze Risk
04

The Fast Finality vs. L1 Reorg Trap

Games often assume instant finality on L2s, but L1 reorgs can invalidate L2 blocks, causing state rollbacks. This breaks game logic and enables double-spend exploits within the game economy.

  • Attack Vector: Ethereum L1 reorg (7-block deep reorgs are possible).
  • Impact: Rollback of in-game actions and transactions.
  • Mitigation: Design game logic with L1 finality checkpoints; use L2s with single-slot finality (e.g., zkSync, Starknet) where possible.
7 Blocks
Max L1 Reorg
Rollback
Game State Risk
05

The Upgradability Admin Key Risk

Most L2s and sidechains (Polygon PoS, Arbitrum) have multi-sig admin keys for emergency upgrades. A compromised key allows an attacker to change core game contract logic, mint infinite assets, or drain treasuries.

  • Attack Vector: 5-of-9 multi-sig compromise or social engineering.
  • Impact: Total protocol control loss; game economy destruction.
  • Mitigation: Advocate for and deploy on immutable L2 instances or those with strictly timelocked, decentralized governance (e.g., Optimism Collective).
5-of-9
Typical Multi-sig
Total
Control Loss
06

The Cross-Chain Messaging Oracle Attack

Games using cross-chain messaging (CCIP, Wormhole, LayerZero) for interoperability rely on external oracle networks. A 2/3+1 malicious quorum can forge messages, minting illegitimate assets or triggering false in-game events.

  • Attack Vector: Oracle validator set collusion or exploit.
  • Impact: Infinite mint of bridged game assets, breaking scarcity.
  • Mitigation: Use hyperlane's modular security with economic stakes, or implement multi-layer fallbacks with native L2 issuance as a backup.
2/3+1
Quorum to Attack
Infinite Mint
Economic Risk
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Why Sidechains & Layer 2s Create New Gaming Attack Vectors | ChainScore Blog