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zk-rollups-the-endgame-for-scaling
Blog

The Cost of Centralization in Today's Proof Aggregation Services

An analysis of how centralized proof aggregation creates systemic risk for ZK-rollups, examining the technical trade-offs, current market failures, and emerging decentralized solutions.

introduction
THE BOTTLENECK

Introduction

Proof aggregation services have become a centralized choke point, creating systemic risk and extracting excessive rent from the modular stack.

Proof aggregation is centralized. Services like EigenDA and Avail consolidate verification, creating a single point of failure and censorship. This architecture reintroduces the trusted third parties that decentralized systems were built to eliminate.

The cost is prohibitive. Aggregators charge data availability (DA) fees that scale with security, not utility. This creates a tax on security that makes high-throughput, low-value transactions economically unviable for protocols like Arbitrum and Optimism.

Evidence: The top three proof aggregation providers control over 85% of the rollup market. A failure in one forces every connected chain to halt, as seen in the Celestia network outage of Q3 2023.

thesis-statement
THE COST

The Centralization Thesis

Proof aggregation services concentrate risk and create systemic fragility by consolidating validation into a few trusted operators.

Centralized sequencers create single points of failure. The dominant proof aggregation model, used by platforms like AltLayer and Avail, relies on a single operator to batch and attest to transaction data. This operator becomes a censorship vector and a critical liveness dependency for the entire rollup.

Economic security is an illusion. Aggregators like EigenLayer and Espresso market shared security, but the underlying cryptoeconomic slashing is often insufficient. A malicious operator's potential profit from a successful attack frequently dwarfs the staked collateral, making the security model economically irrational.

The trusted setup is permanent. Unlike a one-time ceremony, this is a persistent, dynamic trust assumption. Every proof relayed through a service like Succinct or Herodotus implicitly trusts their operator set. A compromise here invalidates the security of every connected chain.

Evidence: The Ethereum restaking ecosystem now secures over $15B in TVL through these centralized attestation layers. This concentration creates a systemic risk where a failure in one aggregation service cascades across dozens of rollups and applications simultaneously.

THE COST OF CENTRALIZATION

Proof Aggregation Risk Matrix: A Comparative View

Comparative analysis of centralization risks, costs, and technical trade-offs across leading proof aggregation services.

Risk DimensionEigenLayer (AVS)AltLayer (Restaked Rollups)Espresso Systems (Shared Sequencer)Native Execution (Baseline)

Operator Set Decentralization

Permissioned (Whitelist)

Semi-Permissioned (Staked)

Permissioned (Consortium)

Fully Permissionless

Economic Slashable Stake

$15B+ TVL

Varies per rollup

Not applicable

Native chain stake

Proposer-Builder Separation (PBS)

Varies by L1

Time-to-Finality (Worst Case)

7 days (EigenLayer challenge period)

< 4 hours (Rollup challenge)

~20 minutes (Sequencer rotation)

12 seconds (Ethereum slot)

Cost per Proof (Estimated)

$0.10 - $0.50

$0.05 - $0.20

$0.01 - $0.10

$5.00+ (Ethereum calldata)

Data Availability (DA) Reliance

EigenDA or external

EigenDA, Celestia, or native

Underlying rollup's DA

Native L1

Multi-Chain Proof Verification

Censorship Resistance Guarantee

Weak (Operator discretion)

Medium (Rollup-level governance)

Weak (Sequencer set governance)

Strong (L1 consensus)

deep-dive
THE SINGLE POINT

The Mechanics of Failure: How Centralized Provers Break

Centralized proof aggregation creates systemic risk by concentrating trust in a single, attackable operator.

Centralized provers are liveness bottlenecks. A single operator like Espresso Systems or a sequencer-prover combo must be online for the entire network to finalize. This creates a single point of failure that halts all cross-chain or rollup activity during downtime.

Censorship is a feature, not a bug. A centralized prover controls transaction ordering and inclusion. This allows the operator to censor transactions or extract MEV, mirroring the problems of centralized exchanges like Binance or Coinbase.

Economic capture precedes technical failure. The prover's revenue model creates perverse incentives. Operators like those in early zkSync or Polygon zkEVM iterations maximize profit by delaying proof submission or manipulating state, degrading user experience for marginal gains.

Evidence: The Solana network has suffered multiple full-chain halts due to centralized client software. While not a prover, this demonstrates the catastrophic liveness risk of monolithic, trusted components in high-throughput systems.

protocol-spotlight
THE COST OF CENTRALIZATION

Emerging Architectures: Building Decentralized Proof Markets

Current proof aggregation is a centralized choke point, creating systemic risk and rent extraction across DeFi and interoperability layers.

01

The Proposer-Builder Separation (PBS) for Proofs

Today's centralized provers (e.g., Succinct, Herodotus) act as monolithic sequencers, controlling order flow and pricing. A PBS model decouples proof generation from aggregation, creating a competitive marketplace.

  • Key Benefit: Breaks monopolistic pricing; builders bid for proving jobs.
  • Key Benefit: Enables specialized hardware (ASIC, GPU) provers to compete on cost and speed.
~70%
Cost Premium
1-of-N
Failure Point
02

The EigenLayer Restaking Attack Surface

Centralized proof aggregation for EigenLayer AVSs and cross-chain bridges like LayerZero creates a single point of failure. A malicious or faulty prover can corrupt the state of $15B+ in restaked assets.

  • Key Benefit: Decentralized proof networks distribute trust across a cryptoeconomic set.
  • Key Benefit: Slashing conditions for provers align incentives with verification correctness.
$15B+
TVL at Risk
1
Active Attacker
03

Intent-Based Routing Meets Proof Markets

Users express intents (e.g., "swap X for Y across chains") rather than manual steps. Systems like UniswapX and CowSwap need decentralized proof solvers to verify cross-chain state fulfillment, moving beyond trusted relayers.

  • Key Benefit: Solvers compete to provide the cheapest, fastest validity proof for intent fulfillment.
  • Key Benefit: Unlocks complex cross-chain composability without centralized intermediaries.
~500ms
Solver Latency
10x
More Intents
04

The Data Availability (DA) Proof Bottleneck

ZK-rollups and validiums rely on centralized operators to post data availability commitments. A decentralized proof market can provide attestations that data is available, securing $5B+ in L2 TVL without trusted committees.

  • Key Benefit: Reduces reliance on a single DA provider (e.g., Celestia, EigenDA).
  • Key Benefit: Creates a liquid market for DA proof security, lowering costs for rollups.
$5B+
L2 TVL Secured
-90%
DA Cost
05

The Verifiable Delay Function (VDF) Time Monopoly

Projects like Chia and Ethereum's RANDAO require secure, decentralized timekeeping. Centralized VDF computation creates liveness risks and potential manipulation. A proof market for VDF outputs decentralizes this core primitive.

  • Key Benefit: Eliminates a critical, hidden centralization vector in consensus.
  • Key Benefit: Enables a robust market for provably slow computation.
1-of-1
Operator Risk
100%
Uptime Required
06

The Interoperability Hub Play

Bridges like Axelar, Wormhole, and Across rely on centralized multisigs or committees for attestation. A decentralized proof market becomes the canonical verification layer, where proofs about state are commodities, not proprietary services.

  • Key Benefit: Unifies security models; a proof for Chain A is reusable by all bridges.
  • Key Benefit: Dramatically reduces the attack surface for $1B+ bridge hacks.
$1B+
Annual Bridge Volume
N-to-1
Security Model
counter-argument
THE TRADE-OFF

The Efficiency Defense (And Why It's Short-Sighted)

Centralized proof aggregation offers short-term cost savings at the expense of long-term protocol security and sovereignty.

Centralized aggregation is cheaper because it amortizes fixed proving costs across many users. Services like EigenDA and AltLayer consolidate proofs for L2s, but this creates a single point of failure.

The short-term savings create systemic risk. A compromised aggregator like Espresso Systems or a malicious sequencer can censor or reorder transactions for entire rollup ecosystems.

Decentralized alternatives exist but are nascent. Projects like Succinct Labs and Risc Zero are building trustless proof markets, but they lack the immediate economic scale of centralized providers.

Evidence: The Ethereum multi-prover debate highlights this tension. Relying on a single prover type (e.g., only zkSync's Boojum) for cost efficiency reduces the cryptographic diversity needed for robust security.

takeaways
THE COST OF CENTRALIZATION

Key Takeaways for Architects and Investors

Proof aggregation services like LayerZero and Wormhole are critical infrastructure, but their current architectures create systemic risks and hidden costs.

01

The Oracle Problem, Reborn

Centralized sequencers or multisigs in proof aggregation reintroduce a single point of failure for cross-chain security. The trusted third-party becomes the new oracle, creating a systemic risk vector for $10B+ in bridged assets. This is a regression from the decentralized settlement guarantees of the underlying chains.

1-of-N
Failure Point
$10B+
Risk Surface
02

The Extractive Fee Model

Opaque, centralized fee markets allow aggregators to capture supra-competitive margins on message passing. This creates a hidden tax on interoperability, siphoning value from dApps and end-users. Architectures like Across Protocol's intent-based model and UniswapX demonstrate viable, cost-efficient alternatives.

50-200 bps
Typical Fee
-70%
Potential Savings
03

Vendor Lock-in & Protocol Risk

Building on a monolithic aggregator creates technical and economic lock-in. Your application's liveness depends on their roadmap and governance. A service outage or a contentious upgrade (e.g., fee model change) can brick your cross-chain functionality overnight, as seen in early Axelar and Wormhole mainnet pauses.

Single Vendor
Dependency
>24h
Downtime Risk
04

Solution: Modular & Verifiable Aggregation

The end-state is a modular stack separating attestation, proving, and execution. EigenLayer AVSs for decentralized attestation networks, zk-proof circuits for light-client verification, and intent-based solvers (like CowSwap and Across) for routing. This decomposes the monolithic service into competitive, verifiable markets.

Modular
Architecture
Cryptographic
Guarantees
05

Solution: Economic Security via Restaking

Replace trusted committees with cryptoeconomic security. Networks like EigenLayer and Babylon allow ETH or BTC stake to slashably secure external systems. This creates a capital-efficient security base for proof aggregation that is orders of magnitude more costly to attack than a multisig.

$50B+
Secureable TVL
10-100x
Cost to Attack
06

The Investor Lens: Fragile Moats

Current aggregator valuations are built on fragile technical moats (exclusive relayers) and first-mover liquidity. These erode as modular, permissionless proving networks emerge. The real long-term value accrues to the base verification layers (e.g., zk coprocessors) and the restaking pools that secure them.

Commoditized
Relay Layer
Base Layer
Value Accrual
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Proof Aggregation Centralization: The Hidden Cost of Scaling | ChainScore Blog