2025-03-03
On Feb 28, 2025, an Ethereum researcher, known as “Malik672”
has suggested a new way to make Ethereum’s block proposal process fairer and
more decentralized.
Their idea could also eliminate Maximal
Extractable Value (MEV), which is a problem that allows certain players to
profit unfairly by manipulating transactions.
The Problem: Centralized Block Building
Ethereum currently uses a Proof-of-Stake
(PoS) system where block building is handled by a few large entities called builders.
This has led to centralization, with
two builders—Beaverbuild and Titan Builder—creating about 80% of all Ethereum
blocks. This situation goes against Ethereum’s goal of decentralization and
fairness.
MEV allows these powerful builders to
reorder or block transactions for profit, hurting regular Ethereum users.
This is done through strategies like front-running
and arbitrage, where they manipulate transactions for financial gain.
The Proposed Solution: Decentralized
Random Block Proposal
Malik672’s idea introduces a shared
random algorithm that lets all Ethereum clients (not just a few
builders) participate in block creation.
The process would be completely random and
use a system called Byzantine Fault Tolerance (BFT) to ensure fairness.
With this system, any Ethereum client
can propose a block. A cryptographically random algorithm selects which blocks
get accepted.
This prevents anyone from manipulating
transactions for profit (eliminating block-level MEV).
It spreads power across the network
instead of concentrating it among a few entities.
Key Benefits
1. Removes
Block-Level MEV – Since no one knows in advance who will propose the
next block, they cannot manipulate transactions.
2. More
Decentralization – Instead of two major players controlling block
creation, thousands of Ethereum clients would share the responsibility.
3. Faster
Transactions – Block processing times might reduce from 12 seconds
to 6-8 seconds.
(Parallel
client proposals and validator execution could shrink Ethereum’s 12-second slot
to 6-8 seconds)
4. Supports Future
Upgrades – The proposal is compatible with Danksharding, an upgrade
designed to improve Ethereum’s scalability.
Trade-offs and Challenges
The system prioritizes fairness over
optimization, which may make layer 2 scaling (L2) less efficient.
It requires strong network
synchronization to ensure all nodes have the same transaction data.
Validators would need to adjust to new randomized
selection processes.
Conclusion
Ethereum’s current system allows a
small group to control most blocks, creating unfair advantages through MEV.
Malik672’s Decentralized Random
Block Proposal could fix this by making block creation fully democratic and
trustless. While it may sacrifice some efficiency, it aligns better with
Ethereum’s original vision of decentralization.
Future Improvements
Testing how well transaction
synchronization works under heavy use. Finding ways to optimize the system for layer
2 rollups. Creating backup mechanisms in case too many nodes disagree.
This proposal could mark a major shift
in Ethereum’s future, bringing more fairness and decentralization to the
network.
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