{"id":29391,"date":"2022-09-18T09:49:27","date_gmt":"2022-09-18T09:49:27","guid":{"rendered":"http:\/\/egrowonline.com\/?p=29391"},"modified":"2022-09-18T09:49:27","modified_gmt":"2022-09-18T09:49:27","slug":"flashbots-build-over-82-relay-blocks-adding-to-ethereum-centralization","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=29391","title":{"rendered":"Flashbots build over 82% relay blocks, adding to Ethereum centralization"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div data-v-6ebd806f=\"\">\n<p>Following the completion of The Merge upgrade, Ethereum (<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/ethereum-price\" rel=\"noopener\">ETH<\/a>) transitioned into a <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/blockchain-for-beginners\/proof-of-stake-vs-proof-of-work:-differences-explained\" rel=\"noopener\">proof-of-stake (PoS)<\/a> consensus mechanism, helping the blockchain become energy efficient and secure. However, mining data reveals Ethereum\u2019s heavy reliance on Flashbots \u2014 a single server \u2014 for building blocks, raising concerns over a single point of failure for the ecosystem.<\/p>\n<p>Flashbots is a centralized entity dedicated to transparent and efficient Maximal Extractable Value (MEV) extraction, which acts as a relay for delivering Ethereum blocks. <a target=\"_blank\" href=\"https:\/\/www.mevboost.org\/\" rel=\"noopener nofollow\">Data<\/a> 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. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-09\/69a7f29b-6649-459c-833f-221b9e5faad8.png\" \/><figcaption style=\"text-align: center\"><em>Relays sorted by number of delivered blocks. Source:\u00a0mevboost.org<\/em><\/figcaption><\/figure>\n<p>As shown above, out of the lot, 82.77% of all relay blocks have been found to be built by Flashbots alone \u2014 contributing heavily to Ethereum centralization. <\/p>\n<p>A related <a target=\"_blank\" href=\"https:\/\/blog.bitmex.com\/flashbots\/\" rel=\"noopener nofollow\">blog<\/a> 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. <\/p>\n<p><strong><em>Related: <\/em><\/strong><a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-merge-community-reacts-with-memes-gifs-and-tributes\" rel=\"noopener\"><strong><em>Ethereum Merge: Community reacts with memes, GIFs and tributes<\/em><\/strong><\/a><\/p>\n<p>Complementing the data related to Flashbots\u2019 dominance, an analysis from Santiment <a target=\"_blank\" href=\"https:\/\/twitter.com\/santimentfeed\/status\/1570339602346684416?s=20&amp;t=8t_n6EiIBkn4X4oSRcZ2rg\" rel=\"noopener nofollow\">indicated<\/a> that 46.15% of Ethereum\u2019s PoS nodes are controlled by only two addresses.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"> According to our <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#Ethereum<\/a> Post Merge Inflation dashboard, 46.15% of the <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/proofofstake?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#proofofstake<\/a> nodes for storing data, processing transactions, and adding new <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/blockchain?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#blockchain<\/a> blocks can be attributed to just two addresses. This heavy dominance by these addresses is something to watch. <a target=\"_blank\" href=\"https:\/\/t.co\/KQdFNgGloD\" rel=\"noopener\">pic.twitter.com\/KQdFNgGloD<\/a><\/p>\n<p>\u2014 Santiment (@santimentfeed) <a target=\"_blank\" href=\"https:\/\/twitter.com\/santimentfeed\/status\/1570339602346684416?ref_src=twsrc%5Etfw\" rel=\"noopener\">September 15, 2022<\/a><\/p><\/blockquote>\n<p>&#8220;Since the successful completion of the Merge, the majority of the blocks \u2014 somewhere around 40% or more \u2014 have been built by two addresses belonging to Lido and Coinbase. It isn\u2019t ideal to see more than 40% of blocks being settled by two providers, particularly one that is a centralized service provider (Coinbase),&#8221; explained Ryan Rasmussen, crypto research analyst at Bitwise.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/flashbots-build-over-82-relay-blocks-adding-to-ethereum-centralization\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019s heavy reliance on Flashbots \u2014 a single server \u2014 for building blocks, raising concerns over a single point of failure for the ecosystem. Flashbots is a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":29392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[41],"tags":[1981,501,1406,11241,158,11239,11240],"class_list":["post-29391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum","tag-adding","tag-blocks","tag-build","tag-centralization","tag-ethereum","tag-flashbots","tag-relay"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/09\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvYjg4MWUyNzQtYTQ1ZS00MGE1LTg3YWEtZDA0YTI1OTdmNzcyLmpwZw.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/29391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29391"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/29391\/revisions"}],"predecessor-version":[{"id":29393,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/29391\/revisions\/29393"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/29392"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29391"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}