Understanding Blockchain Risk and Control Points: A Transparency Guide

Not all blockchains are built the same. This guide breaks down the risk points in commonly used Layer 1 and Layer 2 chains—guiding you with clear insight before you build, explore, or invest your energy into blockchain technologies. Designed for clarity and care.

[April 2025] — As blockchain adoption continues to rise across the globe, conversations about freedom, control, decentralization, and safety become even more critical. At Lucky Star, I believe that for emerging technologies to serve real human needs—especially in high-risk, high-vulnerability regions—they must be applied with care and visibility. That includes helping users understand the actual layers of control, gatekeeping, or potential failure embedded within many of the platforms now widely available.

This insight provides a concise analysis of the most commonly used Layer 1 and Layer 2 blockchains as of April 2025. It maps out where potential chokepoints exist, such as administrative backdoors, centralized sequencers, or upgradeable smart contracts. By making blockchain infrastructure more visible, the goal is to support individuals and communities in making informed choices about which technologies to explore, build on, or invest their time and learning into.

 

Blockchain Risk & Control Summary (L1 + L2)

 

Blockchain	Type	Sequencer / Node Centralization	Upgradeable Contracts	Admin Keys / Control Points	Wallet Access / Freezing Risk	Notes
Bitcoin (BTC)	L1	No (fully decentralized miners)	No	No	No	Immutable, censorship-resistant. No smart contract layer in base protocol. Most secure in terms of autonomy.
Ethereum (ETH)	L1	No (thousands of validators)	Yes (depends on contract)	Yes (at contract level)	Depends on contract logic	Ethereum is neutral at base layer; contracts vary. Some have admin features.
Solana (SOL)	L1	Fewer validators, more centralized	Yes	Yes (often in core contracts)	Yes (in some token/DeFi contracts)	High performance, but less decentralized. Downtime and resets have occurred.
Avalanche (AVAX)	L1	Subnet flexibility (varies)	Yes	Yes	Possible depending on use	Subnets can be customized; some may be permissioned. Varies by deployment.
BNB Chain (BSC)	L1	Highly centralized (21 validators)	Yes	Yes	High (contract & protocol level)	Operated by Binance. Admin-heavy chain, lower censorship resistance.
Cardano (ADA)	L1	Decentralized staking	Limited smart contract use	No	Very low	Conservative design. Less feature-rich but strong decentralization goals.
Polkadot (DOT)	L1	Nominated proof of stake (moderate decentralization)	Yes	Yes (governance council)	Depends on parachain rules	Governance-forward chain. Balance between flexibility and control.
Tezos (XTZ)	L1	Decentralized baking	Yes (on-chain governance)	Governance voting	No hard-coded freezing features	On-chain upgrade model avoids admin keys; requires quorum.
Optimism	L2	Yes (centralized sequencer)	Yes	Yes (Optimism Foundation)	Possible via upgradeable contracts	Promises to decentralize. Based on Ethereum. Inherits some ETH security.
Arbitrum	L2	DAO-operated sequencer + bridge	Yes	Yes (via DAO governance)	Low to moderate	DAO controls upgrades; sequencer still a trust vector.
Base (Coinbase)	L2	Yes (Coinbase sequencer)	Yes	Yes (Coinbase)	Moderate	Built on Optimism. Regulatory risk due to corporate control.
zkSync Era	L2	Yes (Matter Labs)	Yes	Yes (Matter Labs)	Possible depending on contract	zkRollup = strong privacy + validity, but admin power still present.
Starknet	L2	Yes (StarkWare)	Yes	Yes	Low to moderate	zk-STARK tech is advanced; centralization is being phased out slowly.
Polygon zkEVM	L2	Yes (initial sequencer)	Yes	Yes	Moderate	Early decentralization roadmap. zkEVM features still maturing.

 

 

Definitions to Know

• Sequencer Centralization: Refers to who controls the order and timing of transactions. Centralized sequencers can delay or reorder submissions.
• Upgradeable Contracts: Smart contracts that can be changed after launch. This can be useful for fixes, but risky if one party has unilateral control.
• Admin Keys / Control Points: Addresses or roles that can pause, modify, or override protocols.
• Wallet Freezing Risk: The potential for a wallet address to be blocked from interacting with the chain or specific services due to policy, upgrade, or attack.

 

Use This Knowledge to Build Brighter Futures

If you are experimenting with blockchain in creative work, humanitarian action, tech building, or financial access, it is important to know the underlying mechanisms. Visibility leads to better design, safer experimentation, and stronger communities. Some chains are more flexible; others are more resistant. There is no perfect blockchain—only tools we can learn from and shape with wisdom.

 

Disclaimer: This article is intended for informational and educational purposes only. It does not constitute financial advice, legal advice, or professional counsel. Lucky Star and any associated contributors are not liable for any direct or indirect loss or damages arising from the use or misuse of this content. Always do your own research before using any blockchain platform or application.

For questions, collaboration, or custom consultation, feel free to reach out through my contact page at luckystar.ai/contact.

Stay safe, and curious.