Outside Source
Key Takeaways:
- Ethereum researcher proposes “Decentralized Random Block Proposal” to combat centralization in block building.
- The solution uses shared randomness and Byzantine Fault Tolerance (BFT) to power shared block building.
- It aims to eliminate harmful MEV practices and enhance Ethereum’s core principles of decentralization and fairness.
Despite Ethereum’s leadership in decentralization, issues still remain that threaten its core principles. One of the more challenging issues involves the role of a few block producers as power consolidators as well as the troubling phenomenon of Maximal Extractable Value (MEV). Now, a proposal from Ethereum researcher “Malik672” could tackle both issues directly. The announcement proposes a “Decentralized Random Block Proposal” (DRBP) that uses shared randomness and Byzantine Fault Tolerance (BFT) to split the power of block building among the entire Ethereum client ecosystem. This mechanism is designed to improve decentralization, fairness, and the possibility for optimising network performance, heralding a new era for Ethereum.
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Decentralized Random Block Proposal: Eliminating MEV and Fully Democratizing Ethereum
By:
– malik672Highlights:
– The current Ethereum system is too centralized, with 80% of blocks proposed by just two entities,…— ethresearchbot (@ethresearchbot) February 28, 2025
The Looming Shadow: Centralization & MEV on Ethereum
Centralized Block Building: A Frank Reality
While transitioning to Proof-of-Stake (PoS) and implementing Proposer-Builder Separation (PBS) architecture both aim to mitigate excessive MEV extraction, they have inadvertently led to a concentration of power in the hands of a few block builders and relayers.
An alarming research study by Toni Wahrstätter at the Ethereum Foundation makes it clear. The research showed that just two block builders, Beaverbuild and Titan Builder, accounted for almost 89% of all Ethereum blocks produced in the first two weeks of October 2024. Malik672 says this figure has since dropped to approximately 80%, but the figure is still a world away from the decentralized ideal the Ethereum community had in mind.
Two block builders, Beaverbuild and Titan Builder, accounted for almost 89% of all Ethereum blocks produced. Source: Blockworks
Consider this: Once the “block builders” are concentrated in a handful of entities, they have enormous power over transaction inclusion, ordering and MEV extraction. It creates an environment where a small number of entities can profit at the expense of ordinary users and the overall health of the network.
“This system inverts that: block construction is spread to thousands of clients globally, fully democratizing the process,” Malik672 explains. “There’s no single entity dominating – unlike PBS’ building team or a centralized mixer – and BFT mitigates mempool differences, ensuring robustness.”
MEV: A Double-Edged Sword
On Value Extraction and its Dark Side
Maximal Extractable Value (MEV) is the revenue a block proposer may extract by reordering, inserting, or censoring transactions within the blocks they propose. Although MEV might encourage validators to behave efficiently, it may sometimes lead to manipulative strategies harming the average user.
Some of the most frequent MEV strategies are arbitrage, front-running, and sandwich attacks. Arbitrage is the most basic form of trading that uses multiple trading platforms, as arbitrage bots constantly monitor multiple DEXs for price differences and quickly trade to take advantage of that difference, creating booms and busts at times.
These strategies increase transaction costs, compromise fairness, and introduce instability into the network.
MEV Exploitation In Action: Sandwich Attacks
Let’s assume a trader who wants to buy a large amount of a token on a decentralized exchange (DEX). An MEV bot notices this pending transaction and performs a sandwich attack. Initially, the bot purchases the token right before the trader’s transaction, inflating the token price artificially. After the trade, the bot sells the token back to the market, earning from the price difference resulting from the trader’s buying order. The end result is the original trader pays more, while the MEV bot takes home the benefits.
This is just one example of how MEV can be used to extract value in a way that is not fair to everyday users, making DeFi a more dangerous place for them.
A New Hope: Decentralized Random Block Proposal
To address these challenges, Malik672 proposed the ”Decentralized Random Block Proposal”. By democratizing block proposal, moving MEV to the block level, and establishing a more decentralized, fair Ethereum future.
How It Works: Shared Randomness + BFT Consensus
- Shared Randomness Algorithm: Rather than significantly limiting which builders can construct each block, every Ethereum client is provided the opportunity to build blocks through a fair, transparent randomness algorithm. This could include a verifiable random function (VRF) that guarantees both randomness and resistance against manipulation.
- Byzantine Fault Tolerance (BFT): This is used to ensure consistency, reliability and fault tolerance of the system, even when parts of it are faulty or malicious. One practical example is pBFT (Practical Byzantine Fault Tolerance).
How pBFT would apply here
pBFT allows network nodes to achieve consensus, despite it being the case that some nodes can be faulty or malicious. Clients count votes to decide what the next valid block should be. In other words, only if a super-majority (more than two-thirds) of clients collectively agree on a block, will that block be accepted and written to the blockchain. This mechanism discards invalid blocks and ensures that even if some individuals attempt to cheat, such as submitting invalid blocks, the clients still enforce normal operation with accurate and secure data.
Power Distribution: All clients compete randomly and equally for block building rights, preventing anyone from being able to exert inordinate control over the process. This eliminates the incentive to build blocks that are optimized to maximize individual MEV extraction.
Benefits of DRBP: A Changing Paradigm
- True Democratization: Provides the right to build blocks to thousands of customers globally, allowing for a more diverse and competitive ecosystem. This makes it increasingly difficult for any one party to have undue sway over the network.
- Effective MEV Elimination: Reduces the risk of manipulation and shields users against extractive methods
- Increased Decentralization: You are no longer susceptible to large block builders, allowing for a more robust network that is less easily controlled. Under this relatively stable state, the network becomes significantly more resilient to attacks or censorship as the number of builders increases.
- Improved Performance: Offers the possibility to decrease the duration of a slot, accelerates transaction processing, and enhances the overall user experience.
- Danksharding Compatibility: Provides compatibility with layer-2 scaling solutions, allowing Ethereum to scale to meet the demands of its growing user base.
- Strengthens the trustless principles: Creates a transparent, fair, and trustless environment where users can interact safely and efficiently.
PBS vs. DRBP: A Comprehensive Comparison
| Feature | PBS (Current) | Decentralized Random Block Proposal (Proposed) |
| Block Builders | Concentrated among a few large builders | Distributed fairly across all Ethereum clients |
| MEV | Still exists and is concentrated among builders | Eliminated entirely at the block level |
| Decentralization Level | Relatively limited | Significantly enhanced |
| Transaction Speed | 12 seconds/slot | Potential to decrease to 6-8 seconds/slot |
| Compatibility | Requires PBS | Compatible with Danksharding |
Potential and Future Challenges
The Decentralized Random Block Proposal, or DRB, is a potentially transformative initiative that may forever change Ethereum. Successful execution could yield incredible value to the community & ecosystem:
- A Fairer Ethereum: Helps prevent manipulation, protects user rights, and levels the playing field for everyone.
- A More Efficient Ethereum: Transactions are processed more quickly, at lower costs, and with greater smoothness.
- A More Decentralized Ethereum: Strengthens Ethereum’s foundation based on the principles of trust, transparency, and decentralization.
But there are also major challenges to executing this solution. Before the implementation on the main network a considerable amount of research work, testing, and scrutiny must be done so that its viability, security, and potency are ensured. Potential challenges include:
- Increased Computational Overhead: Distributing block building to a large number of clients could increase computational demands on the network.
- Risk of Sybil Attacks: Anyone can attempt to generate multiple fake clients to have excessive power in block generation.
- Coordination Complexity: Requiring a high number of block builders to agree on a final result may be much less efficient compared to the current model in place.
More News: Ethereum Foundation Restructures Leadership in Bold Move to Revive Ecosystem Growth
Towards a Decentralized and Sustainable Ethereum
The “Decentralized Random Block Proposal” is a bold, high-potential idea that could help Ethereum get closer to becoming a truly decentralized platform. Innovations are needed to keep Ethereum at the forefront of the blockchain revolution and to build a better tomorrow for all, and we are excited to see more breakthroughs like this in the Ethereum ecosystem as they all play a huge role to help create the change that is needed for a fully decentralized and fair future. With these new solutions to test out and the capacity for more, it seems likely that innovation and collaboration will help Ethereum continue to go from success to success in the time ahead. Considering Ethereum is the home for most of the new applications built, it would be interesting to see it leading the way in blockchain innovation!
This article first appeared at CryptoNinjas
