🚨 ETHEREUM Becoming CENTRALIZED??

88% of Ethereum Blocks Produced by 2 Builders in Oct.

In a surprising development, Beaverbuild and Titan Builder produced 88.7% of Ethereum blocks in the first half of October, raising concerns about centralization on Ethereum’s mainnet.

What’s Driving This?

According to Toni Wahrstätter from the Ethereum Foundation, this trend is mainly fueled by private order flow (XOF), which is sold exclusively by certain apps. XOF limits competition among block builders, leading to fewer shared transactions in block auctions.

This kind of dominance among a few builders can theoretically allow certain transactions to be prioritized over others, something that runs counter to the decentralized principles of blockchain technology.

Should We Be Worried?

While these statistics raise eyebrows, some analysts like Ryan Lee of Bitget Research downplay the threat. Ethereum’s proposer-builder separation model means that block proposers cannot view or control the specific contents of blocks built by others. Instead, they simply choose the most profitable block to validate, ensuring that no single builder can unilaterally control transaction ordering or exclusion.

Lee notes that validators and builders still can’t dictate which transactions go on-chain, alleviating major centralization fears.

But Not Everyone’s Convinced

Despite the separation model, others remain concerned. Maximal Extractable Value (MEV) incentives could still pose risks to Ethereum’s decentralization, as highlighted by software engineer Kishan Kumar. Despite these worries, there’s some optimism.

Ethereum’s validator count has risen 30% in the past year, largely driven by institutional adoption, which could help dilute the concentration of power among a few builders.

Ethereum's reputation and demand have been on a decline for a few months now. Where do you think this all is going? Drop a comment below!

#Ethereum #ETH #VitalikButerin #Centralization #Decentralization