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. 1678 Total views 28 Total shares Listen to article 0:00 News 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 Ethereums 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.
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Complementing the data related to Flashbots dominance, an analysis from Santiment indicated that 46.15% of Ethereums 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 isnt 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. #Blockchain #Mining #Proof-of-Stake #Decentralization #Ethereum Related News The biggest crypto heists of all time ‘I was there’: Special NFTs allow you to celebrate Ethereum’s Merge How to earn passive crypto income in a bear market? Crypto for foreign trade: What do we know about Irans new strategy Ethereum Merge and the hefty tax bill you could be in for ETH Merge: CoinGecko co-founder shares strategy for forked tokens
