In the first two weeks of October, two Ethereum block builders, Beaverbuild and Titan Builder, were responsible for producing nearly 89% of the blocks on the Ethereum mainnet, sparking concerns about centralization on the world’s second-largest blockchain network.
Ethereum Foundation researcher Toni Wahrstätter revealed this information, explaining that the rise in private order flow (XOF), which is sold exclusively by certain applications, has played a key role in this trend. This practice limits competition among builders during block auctions, resulting in a smaller pool of shared transactions.
Decentralization is a fundamental element for maintaining the security and fairness of the Ethereum network. When a small number of entities control a large portion of the transactions, it raises concerns about whether they could prioritize specific transactions, potentially undermining the decentralized nature of blockchain.
Summary Review: Beaverbuild and Titan Builder produced almost 89% of Ethereum blocks in early October, causing concerns about centralization on the Ethereum network. This trend is attributed to the rise of private order flow (XOF), which limits competition among builders. Centralization could lead to issues like prioritization of transactions, challenging the decentralized principles of blockchain technology.
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