Three builders produce over 90% of Ethereum’s blocks, raising centralization concerns.
High costs and access barriers prevent new builders from competing effectively.
79% of MEV-Boost auctions are efficient, revealing significant system inefficiencies.
Blockchain reporter Martin Hiesboeck recently shared a study that raised concerns about Ethereum’s decentralization. The report investigates the reasons behind this trend and examines the security implications for MEV-Boost auctions.
The study’s findings reveal that a mere three builders now create over 90% of Ethereum’s blocks. This indicates a high degree of centralization in block production on a blockchain often lauded for its security and decentralized nature.
Ethereum introduced a builder market mechanism through MEV-Boost auctions to address centralization issues caused by Maximal Extractable Value (MEV). However, two years after its implementation, this market has become significantly centralized.
Moreover, the study highlighted one of Ethereum’s key mechanisms—Proposer-Builder Separation (PBS). PBS is designed to separate the roles of creating and proposing blocks within the Ethereum networ…
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