David Schwartz, the former Chief Technology Officer of Ripple, has spoken in support of the Arbitrum Security Council’s recent emergency actions.
He’s actually likened the current situation to a major period of uncertainty Bitcoin faced in its early days.
Following a recent security breach affecting KelpDAO, the Arbitrum Security Council has frozen approximately 30,766 ETH that was taken by the attacker.
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The council was able to secure the funds without impacting the broader network state.
As soon as we launched the initiative, we faced strong opposition from groups worried about increasing central control. I’ve been analyzing the feedback, and it’s clear that concerns over centralization are the primary driver of this pushback.
The worry is that the security council could update the network in a way that doesn’t require each user to manually download and approve a new version of the software.
Nakamoto stated that the Security Council’s ability to modify the core smart contract goes against the principles of decentralization, as it gives them undue control.
The 2010 value overflow incident
However, Schwartz argues that Arbitrum’s moves don’t go against the core ideas of decentralization.
Schwartz highlighted a past incident where a hacker managed to create over 184 billion Bitcoin from nothing, an event referred to as the “value overflow incident.”
Following an issue with Bitcoin, Satoshi Nakamoto and the initial developers released an update. Node operators, those who run and maintain the Bitcoin network, then essentially reset the blockchain to a previous state. According to David Schwartz, this action demonstrated Bitcoin’s ability to correct itself when there’s disagreement about the data. Node operators effectively decided the existing rules weren’t accurate and both updated those rules and reverted the blockchain’s history to reflect the change.
The Arbitrum community identified a problem with the network’s state and the governing council took steps to fix it. As one member explained, there was no obligation to accept the blockchain’s output under the existing rules – that’s simply a characteristic of a decentralized system.
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2026-04-22 10:44