Ethereum decentralization takes hit as Blocknative discontinues its … – Blockworks
Concerns about increased centralization on the Ethereum network have intensified, following Blocknatives decision to discontinue its MEV-boost relay on Tuesday.
Relayers play a pivotal role in settling transactions on Ethereum. They ensure timely and efficient processing, bridging the gap between users and the blockchain by batching and broadcasting transactions. With the exit of Blocknative, the relayer landscape is becoming increasingly concentrated. At time of writing, only four relayers remain active on the network.
Following Ethereums transition to proof-of-stake, the roles of block proposing and block building became distinct processes. MEV-boost software was developed to facilitate an efficient market between these proposers, which submit transaction bundles to validators, and builders, which organize the transactions in a specific order.
Following the Merge, a group of well-resourced Ethereum block builders, formerly including Blocknative, began running their own relays.
Today, nearly all Ethereum transactions use MEV-boost relays. 93% of Ethereum blocks created in the past 14 days made use of MEV-boost, according to data compiled on mevboost.pics. At the time that data was compiled, five entities were responsible for relaying 98% of the MEV-boosted transactions, per relayscan.io.
According to Blocknative, it dropped its MEV-boost relay because continuing was no longer economically viable. The four remaining relayers collect no fees for their services, making this core piece of Ethereum infrastructure unprofitable for its operators. A recent Flashbots community proposal aims to start a PBS Guild which would solicit Ethereum community donations in part to reward relayers.
Uri Klarman, CEO of relaying entity Bloxroute, believes that a relayer fee mechanism should be activated, however. He suggests that block validators anticipate this move.
I heard from multiple validators, like, yeah, we dont understand how you [havent charged] us until this point, Klarman told Blockworks.
Klarman said relayer fees would require some level of consensus between the remaining relaying entities and, ideally, the Ethereum community. If the economic incentive problem isnt fixed, though, Klarman thinks the perceived centralization of MEV-boost relays could grow worse.
In a year, if everything stays the same [] I think its very reasonable that there will be [fewer] relays than there are today, Klarman said.
Elias Simos, the CEO of Ethereum data platform Rated, told Blockworks he is ambivalent toward a future where Ethereum continues to rely on its four major relayers.
Theyre demonstrably long-term actors in the space, so they have a lot to lose [if Ethereum is harmed], Simos said. But at the same time, is that enough?
Updated Sept. 28, 2023 at 10:22 am ET: Updated to clarify that Ethereum transactions are now handled by four relayers.
Dont miss the next big story join ourfree daily newsletter.
Follow Sam Bankman-Frieds trial with the latest news from the courtroom.
See the original post:
Ethereum decentralization takes hit as Blocknative discontinues its ... - Blockworks
- Opening Statement By H.E Dr. Amani Abou-Zeid, Commissioner for Infrastructure and Energy, at the Fifth Ordinary Session of the African Union... - December 22nd, 2024 [December 22nd, 2024]
- 2025 Will Be the Year of Decentralization: 5 Predictions - CoinDesk - December 20th, 2024 [December 20th, 2024]
- Decentralization Is Why We Fight for Crypto - CoinDesk - December 20th, 2024 [December 20th, 2024]
- Breaking Monopolies of Meaning: The Urgency of Narrative Decentralization - Kashmir Convener - December 20th, 2024 [December 20th, 2024]
- Ethereums culture clash: Dissent, decentralization and progress - Blockworks - December 16th, 2024 [December 16th, 2024]
- From the state to the prospects: Shaping the legislative agenda of decentralization - Ukraine Crisis Media Center - December 16th, 2024 [December 16th, 2024]
- PRESS RELEASE: African Ministers to meet in Tunis for the 5th Ordinary Session of the AU Specialized Technical Committee of the on Public Service,... - December 16th, 2024 [December 16th, 2024]
- Stifling Decentralization: The Paradox of Excessive DAO Oversight - CryptoDaily - December 16th, 2024 [December 16th, 2024]
- Decentralization democratizes access to AI computing Theta Labs exec - Cointelegraph - December 16th, 2024 [December 16th, 2024]
- MEDIA ADVISORY: Fifth Ordinary Session of the Specialized Technical Committee of the African Union on Public Service, Local Government, Urban... - December 16th, 2024 [December 16th, 2024]
- U2U Network and UPhone: DePIN meets reality with the start of mainstream decentralization - Cointelegraph - December 10th, 2024 [December 10th, 2024]
- The Decentralization of Disappearance and the Concentration of Power: American Capital is About to Complete the Transfer of Rights in the Crypto... - December 5th, 2024 [December 5th, 2024]
- AI Failures Will Spike In 2025: A Call For Decentralization Innovation - Forbes - December 2nd, 2024 [December 2nd, 2024]
- Starknet Unveils Phase 1 of Staking Initiative, Paving the Way for Decentralization on Ethereum Layer 2 - Bitcoin.com News - December 2nd, 2024 [December 2nd, 2024]
- IOTA Rebased Proposal Highlights: 50k+ TPS, MoveVM, EVM Support, and Full Decentralization - Crypto News Flash - December 2nd, 2024 [December 2nd, 2024]
- Decentralization of power not being digested by certain politicians: Jasrotia - Daily Excelsior - December 2nd, 2024 [December 2nd, 2024]
- The DeFi market lacks decentralization: Why is this happening? - crypto.news - November 24th, 2024 [November 24th, 2024]
- Fiscal Decentralization in Indonesia: Historical Context, Milestone, and Way Forward - ISEAS-Yusof Ishak Institute - November 24th, 2024 [November 24th, 2024]
- As the Synod discusses decentralization, will it miss unseen Connections among Catholics? - Crux Now - October 21st, 2024 [October 21st, 2024]
- Connect people and platforms: The identity-first path to decentralization | Opinion - crypto.news - October 18th, 2024 [October 18th, 2024]
- Online Safety and the Great Decentralization The Perils and Promises of Federated Social Media - Tech Policy Press - October 18th, 2024 [October 18th, 2024]
- Ethereums Future: How Vitalik Buterin Plans to Transform Staking and Decentralization - The Shib Daily - October 18th, 2024 [October 18th, 2024]
- Decentralization could help humanity to avoid an AI doomsday scenario - Cointelegraph - October 11th, 2024 [October 11th, 2024]
- On-Chain Governance: A Paradox of Decentralization and Human Nature - hackernoon.com - October 11th, 2024 [October 11th, 2024]
- The process of decentralization of health services implementation: A qualitative perspective from Sudan - Frontiers - October 11th, 2024 [October 11th, 2024]
- Building Decentralization from the Cardano Constitutional Workshop - TheStreet - October 9th, 2024 [October 9th, 2024]
- New Horizons: Introduction of SCR Token for Decentralization - Bit Perfect Solutions - October 9th, 2024 [October 9th, 2024]
- Vitalik Buterin proposes lowering staking threshold to boost Ethereum decentralization - CryptoSlate - October 4th, 2024 [October 4th, 2024]
- FLOCKERZ Aims to Set a Standard with Its Bold Approach to Decentralization in Meme Coins - 99Bitcoins - October 4th, 2024 [October 4th, 2024]
- Understanding MEV And Its Impact On Ethereum Decentralization - Forbes - September 8th, 2024 [September 8th, 2024]
- Starknet Gears Up For Decentralization With Upcoming STRK Staking Protocol - The Merkle News - September 8th, 2024 [September 8th, 2024]
- Vitalik Buterin has radical scheme for the pseudo-decentralization of entire cities - Cointelegraph - September 2nd, 2024 [September 2nd, 2024]
- Vitalik Buterin has radical scheme for the pseudo-decentralization of entire cities - StartupNews.fyi - September 2nd, 2024 [September 2nd, 2024]
- TON Blockchain Rallies Behind Pavel Durov Following Arrest, Vows to Uphold Decentralization - CCN.com - September 2nd, 2024 [September 2nd, 2024]
- Explore StarChains Decentralization and Pawfurys Gaming Innovation as MoonBag Sets the Stage as the Top Choice in the Best Crypto Presale List -... - August 22nd, 2024 [August 22nd, 2024]
- Tether Paving The Way For Decentralization And Shaping The Future Of Finance? - Blockzeit - August 22nd, 2024 [August 22nd, 2024]
- What Is Decentralization? Achieving Trustless Financial Freedom - DailyCoin - August 16th, 2024 [August 16th, 2024]
- The ownership of everything: entralization vs. decentralization | Opinion - crypto.news - August 16th, 2024 [August 16th, 2024]
- Forestry Decentralization in the Context of Global Carbon Priorities: New Challenges for Subnational Governments - Frontiers - June 30th, 2024 [June 30th, 2024]
- Full decentralization will happen in a few years Layer-2 rollup teams - Cointelegraph - June 30th, 2024 [June 30th, 2024]
- The Importance of Decentralization for Web3 Startups - Blockchain.News - June 30th, 2024 [June 30th, 2024]
- Corporate AI could undermine Web3 and decentralization Industry observers - Cointelegraph - June 30th, 2024 [June 30th, 2024]
- California's Banking on Decentralization: Upcoming Trends and Events in the Blockchain Industry - Gilroy Dispatch - June 25th, 2024 [June 25th, 2024]
- Hyperledger to expand into Linux Foundation Decentralized Trust - Ledger Insights - June 25th, 2024 [June 25th, 2024]
- Ethereum Scaling Network Metis to Become First L2 to Enable Shared Network Ownership - The Defiant - DeFi News - June 25th, 2024 [June 25th, 2024]
- The Sun and the Ether: Why Ethereum Has Already Won - hackernoon.com - June 25th, 2024 [June 25th, 2024]
- Decentralization and Privacy Still at the Core of Ethereum Community - Smartphone Magazine - June 20th, 2024 [June 20th, 2024]
- Vitalik Buterin Highlights Ethereum DApp Innovations - Crypto Times - June 20th, 2024 [June 20th, 2024]
- Bitcoin is King, the Rest is Just Hot Air - Cointribune EN - June 20th, 2024 [June 20th, 2024]
- Bitcoin is the only decentralized currency, Tether CEO says - Cointelegraph - June 20th, 2024 [June 20th, 2024]
- Waterfall Becomes First Proof-of-Stake Network to Pass the Test with 1.5 Million Validators - GlobeNewswire - June 20th, 2024 [June 20th, 2024]
- Privacy expert slams WhatsApp and Telegram, touts decentralized messaging as future - crypto.news - June 20th, 2024 [June 20th, 2024]
- The Biggest Advantage To A Thriving Web3 Ecosystem Is A DAO-Centered Mindset - The Crypto Basic - June 20th, 2024 [June 20th, 2024]
- DeFi at a Crossroads: New EU Regulations Poses Risk to the Future of Decentralization - Coinfomania - May 18th, 2024 [May 18th, 2024]
- zkSync Unveils Final Protocol Upgrade in Anticipation of Token Launch - Coinfomania - May 18th, 2024 [May 18th, 2024]
- What is MakerDAO's Upcoming PureDai and NewStable? - BSC NEWS - May 18th, 2024 [May 18th, 2024]
- 0xResearch Podcast: Ethereum's Staking Debate: Decentralization vs. Security vs. Yield | Hasu & Vasiliy - Blockworks - May 18th, 2024 [May 18th, 2024]
- Reimagining the European Union's Agricultural Policy: A Call for Decentralization - EU Reporter - May 18th, 2024 [May 18th, 2024]
- The Rise of Decentralized Exchanges (DEXs) in DeFi - Robotics and Automation News - May 18th, 2024 [May 18th, 2024]
- Why Governments Around The World Fear DeFi? - Crypto Times - May 5th, 2024 [May 5th, 2024]
- PwD Community in Bong Calls for Decentralization of National Commission on Disabilities - Global News Network ... - Global News Network - March 24th, 2024 [March 24th, 2024]
- South Africa: MSF Calls for Decentralisation of Life-Saving DR-TB Services in Rural Setting - AllAfrica - Top Africa News - March 24th, 2024 [March 24th, 2024]
- Understanding Solana Validators And Top 10 Important Things To Know About Them - Blockchain Magazine - March 24th, 2024 [March 24th, 2024]
- Announcing UniDexAI: Pioneering the Future of Decentralized Trading - AiThority - March 15th, 2024 [March 15th, 2024]
- SendingNetwork Launches Testnet for Bandwidth Mining, Redefining Decentralized Communication Infrastructure - CryptoSlate - March 15th, 2024 [March 15th, 2024]
- Web3 Wallet Wars: Security, Simplicity, And The Race To Dominate Decentralization - The Crypto Basic - January 22nd, 2024 [January 22nd, 2024]
- Taking Back the Web with Decentralization: 2023 in Review - EFF - December 31st, 2023 [December 31st, 2023]
- Vitalik Buterin Blames Rising Transaction Fees for Web3's Drift from Decentralization - Cryptonews - December 31st, 2023 [December 31st, 2023]
- Decentralization and Digital Power: HighKey CMO Jordan Lintz's Take on the New Social Media Era - Grit Daily - December 31st, 2023 [December 31st, 2023]
- Bitcoin Mining Pool Ocean Successfully Mines Third Block in Ongoing Decentralization Quest - Cryptonews - December 31st, 2023 [December 31st, 2023]
- Web3 needs to regress before we can progress in 2024 | Opinion - crypto.news - December 31st, 2023 [December 31st, 2023]
- Kelp Is Crafting a Global Currency by Fusing Central Banking Theorem and Blockchain Decentralization - GlobeNewswire - December 12th, 2023 [December 12th, 2023]
- Solana (SOL) and Cardano (ADA) to be overtaken by Retik Finance (RETIK) in 2024 - Finbold - Finance in Bold - December 12th, 2023 [December 12th, 2023]
- Censorship Climbs on Ethereum as Block Builders Bar US-Sanctioned Transactions - Cryptonews - December 12th, 2023 [December 12th, 2023]
- Microsoft, Tencent and other tech giants join Decentralized Infura ... - Cointelegraph - November 17th, 2023 [November 17th, 2023]
- Web3 Firm Infura Recruits Microsoft, Tencent, and Others To Build ... - Cryptonews - November 17th, 2023 [November 17th, 2023]
- Ethereum L2 Starknet aims to decentralize core components of its ... - Cointelegraph - November 17th, 2023 [November 17th, 2023]
- Business models, fraud and decentralized digital IDs: Future Identity ... - Biometric Update - November 17th, 2023 [November 17th, 2023]
- 3 theses that will drive Ethereum and Bitcoin in the next bull market - Cointelegraph - November 17th, 2023 [November 17th, 2023]
- New York MoMA now has tokenized artworks in its permanent ... - Cointelegraph - November 17th, 2023 [November 17th, 2023]