Vitalik Buterin warned that some Layer 2 networks and decentralized exchanges (DEXs) rely on centralized upgrade keys or opaque admin controls, making them vulnerable to server-side compromises. As a practical solution, he advocated for immutable frontend hosting via static HTML on IPFS

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Buterin pointed out that some layer 2 networks rely on centralized upgrade keys, DeFi platforms use opaque admin controls, and privacy tools based on zero‑knowledge proofs nonetheless leak transaction histories via centralized login components.

In his speech at the EthCC, Buterin mentioned some areas in the crypto space that need to be improved. First, he highlights that many Layer 2 solutions, DEXs, and similar apps claim to be decentralized but often have hidden backdoors or upgrade keys that can be triggered without user consent. This undermines the trustless nature of the blockchain since, despite being technically on-chain.

He highlighted several pressing concerns in the ecosystem: Layer 2s with instant upgrade “backdoors,” decentralized exchanges with questionable mechanics, and dApp frontends that are vulnerable to server-side compromises. As a practical solution, he advocated for immutable frontend hosting via static HTML on IPFS.