L2Beat’s audit shows zkSync’s fraud proof system remains semi-centralized, with 5/7 keys held by Matter Labs. This creates a $2.6B security hole—theoretically allowing insider collusion to freeze funds. Compared to Arbitrum’s 14-day decentralized challenge period, zkSync’s “security council” model lags. The team promises full decentralization by 2025, but competitors like Starknet already implement cryptographic proofs. Users should demand faster progress—especially for institutional adoption.