Following the completion of The Merge improve, Ethereum (ETH) transitioned right into a proof-of-stake (PoS) consensus mechanism, serving to the blockchain change into power environment friendly and safe. However, mining knowledge reveals Ethereum’s heavy reliance on Flashbots — a single server — for constructing blocks, elevating issues over a single level of failure for the ecosystem.
Flashbots is a centralized entity devoted to clear and environment friendly Maximal Extractable Value (MEV) extraction, which acts as a relay for delivering Ethereum blocks. Data from mevboost.org present that there are six energetic relays at present delivering at the very least one block in Ethereum, particularly Flashbots, BloXroute Max Profit, BloXroute Ethical, BloXroute Regulated, Blocknative and Eden.
As proven above, out of the lot, 82.77% of all relay blocks have been discovered to be constructed by Flashbots alone — contributing closely to Ethereum centralization.
A associated blog from BitMEX highlighted the necessity for a whole redevelopment of Flashbots or an analogous system to mitigate unexpected problems in an period after the Merge. However, Flashbots proponents argue that the system is a decentralized autonomous group (DAO) and can ultimately change into decentralized itself.
Related: Ethereum Merge: Community reacts with memes, GIFs and tributes
Complementing the info associated to Flashbots’ dominance, an evaluation from Santiment indicated that 46.15% of Ethereum’s PoS nodes are managed by solely two addresses.
According to our #Ethereum Post Merge Inflation dashboard, 46.15% of the #proofofstake nodes for storing knowledge, processing transactions, and adding new #blockchain blocks could be attributed to simply two addresses. This heavy dominance by these addresses is one thing 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),” defined Ryan Rasmussen, crypto analysis analyst at Bitwise.