Arbitrum Security Council Demonstrates Blockchain Dependence on Social Consensus

The recent actions taken by the Arbitrum Security Council have shed light on the inner workings of Layer 2 networks, particularly when it comes to their reliance on social consensus. The council's decision to lock exploited funds in a frozen wallet has sparked discussions about the immutability of blockchains and the role of governance in maintaining their security.

The Arbitrum Security Council is comprised of 12 members who are elected by the Arbitrum DAO, which jointly owns Arbitrum One with the council. The multi-signature authority held by these members allows them to make significant decisions regarding the network's operations, including freezing user funds.

One such decision was made in response to a KelpDAO exploit, where $71 million worth of ETH was transferred into a frozen wallet on Arbitrum One. This action required 7 out of 12 council members to sign off, demonstrating the importance of trust assumptions in blockchain governance.