BitMEX also highlighted the need for a complete redevelopment of Flashbots or a similar system to mitigate unexpected complications in the post-merger era.
After The Merge upgrade was completed, Ethereum (ETH) switched to 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 – to build the block, raising concerns about a single point of failure for the ecosystem.
Flashbots is a central entity dedicated to transparent and efficient mining of the maximum extractable value (MEV), which acts as a relay for the delivery of Ethereum blocks. Data from mevboost.org shows that there are six active relays currently issuing at least one Ethereum block, namely Flashbots, BloXroute Max Profit, BloXroute Ethical, BloXroute Regulated, Blocknative, and Eden.
As shown above, 82.77% of all migration blocks were generated by Flashbots alone, which contributes strongly to the centralization of Ethereum.
A related BitMEX blog noted the need for a complete redevelopment of Flashbots or a similar system to mitigate unexpected complications in the post-merger era. However, Flashbots proponents claim that the system is a decentralized autonomous organization (DAO) and will eventually become decentralized itself.
To complement the data on Flashbot’s dominance, an analysis by Santiment indicates that 46.15% of Ethereum PoS nodes are controlled by just two addresses.
According to our #Ethereum Post Merge Inflation dashboard, 46.15% of #proofofstake nodes can be returned for data storage, transaction processing, and adding new #blockchain blocks to just two addresses. This strong dominance must be monitored by these titles. pic.twitter.com/KQdFNgGloD
“Since the successful merger, the majority of blocks – somewhere around 40% or more – have been built with two addresses owned by Lido and Coinbase. It’s not ideal to see more than 40% of blocks,” Bitwise crypto research analyst Ryan Rasmussen explained. It is settled by two providers, notably a centralized service provider (Coinbase).
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