Flashbots build over 82% relay blocks, adding to Ethereum centralization

BitMEX, too, highlighted the need for a complete redevelopment of Flashbots or a similar system to mitigate unforeseen complications in an era after the Merge.

Following the completion of The Merge upgrade, Ethereum (ETH) transitioned into a proof-of-stake (PoS) consensus mechanism, helping the blockchain become energy efficient and secure. However, mining data reveals Ethereum’s heavy reliance on Flashbots — a single server — for building blocks, raising concerns over a single point of failure for the ecosystem.

Flashbots is a centralized entity dedicated to transparent and efficient Maximal Extractable Value (MEV) extraction, which acts as a relay for delivering Ethereum blocks. Data from mevboost.org show that there are six active relays currently delivering at least one block in Ethereum, namely Flashbots, BloXroute Max Profit, BloXroute Ethical, BloXroute Regulated, Blocknative and Eden.

Relays sorted by number of delivered blocks. Source: mevboost.org

As shown above, out of the lot, 82.77% of all relay blocks have been found to be built by Flashbots alone — contributing heavily to Ethereum centralization.

A related blog from BitMEX highlighted the need for a complete redevelopment of Flashbots or a similar system to mitigate unforeseen complications in an era after the Merge. However, Flashbots proponents argue that the system is a decentralized autonomous organization (DAO) and will eventually become decentralized itself.

Related: Ethereum Merge: Community reacts with memes, GIFs and tributes

Complementing the data related to Flashbots’ dominance, an analysis from Santiment indicated that 46.15% of Ethereum’s PoS nodes are controlled by only two addresses.

According to our #Ethereum Post Merge Inflation dashboard, 46.15% of the #proofofstake nodes for storing data, processing transactions, and adding new #blockchain blocks can be attributed to just two addresses. This heavy dominance by these addresses is something to watch. pic.twitter.com/KQdFNgGloD

— Santiment (@santimentfeed) September 15, 2022

“Since the successful completion of the Merge, the majority of the blocks — somewhere around 40% or more — have been built by two addresses belonging to Lido and Coinbase. It isn’t ideal to see more than 40% of blocks being settled by two providers, particularly one that is a centralized service provider (Coinbase),” explained Ryan Rasmussen, crypto research analyst at Bitwise.

Related Posts

Transit Swap ‘hacker’ returns lion’s share of $23M in stolen funds: Finance Redefined

Majority of the DeFi tokens in Top-100 traded in red barring a few, thanks to the weekend rout in the market correction towards the end of the…

New Zealand Rugby Buys 33 World Of Women Galaxy NFTs

The New Zealand Rugby Commercial, NZ’s commercial arm of the popular sport, has purchased a staggering 33 World of Women Galaxy (WoWG) NFTs. This is the team’s…

Decentraland Gains New Betting Casino: Holy Temple

Decentraland, the popular metaverse world, has a brand new attraction – The Holy Temple Casino. Built by Metaskins, the fully customizable, one-stop-shop for all metaverse and NFTs…

Gold and Silver Prices Slide Lower Following US Jobs Report — Analyst Says Data Suggests ‘Market Bottom Is in Place’

On Friday, October 7, 2022, the precious metals gold and silver dropped in U.S. dollar value following the recent U.S. jobs report for September. The USD value…

Luna Foundation Wants to Repay Small-Time UST Investors, but Why Can’t They?

Crypto researcher FatManTerra slams Terra Luna Foundation Guard’s defense on why it can’t repay bereft TerraUSD (UST) investors. FatManTerra responded to a tweet by the Luna Foundation…

BNB Chain to Conduct Governance Votes on What to Do With the Stolen Funds

After losing millions of dollars worth of assets in a cross-chain hack, the team behind BNB Chain – formerly Binance Smart Chain (BSC) – plans to conduct…

Generated by Feedzy