Vitalik Buterin in his latest blog focuses on the centralization risks in the block building process of Ethereum, pointing out that even with the upcoming “Glamsterdam” upgrade which will officially introduce proposer-builder separation (PBS), allowing validators to outsource block construction to market-based builders, a few dominant builders could still lead to transaction censorship and excessive profit extraction. He proposes mechanisms including FOCIL, where randomly selected participants specify transactions that must be included in the block, and if they are missing, the block is rejected, to reduce the possibility of single-builder censorship; he also suggests encrypting transactions to mitigate the risks of “toxic MEV” front-running and sandwich attacks, and introducing anonymous routing at the network layer to reduce the risk of intermediate nodes observing transactions in advance. (CoinDesk)
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Vitalik Buterin proposes the FOCIL mechanism to address the centralization risk in Ethereum block construction
Vitalik Buterin in his latest blog focuses on the centralization risks in the block building process of Ethereum, pointing out that even with the upcoming “Glamsterdam” upgrade which will officially introduce proposer-builder separation (PBS), allowing validators to outsource block construction to market-based builders, a few dominant builders could still lead to transaction censorship and excessive profit extraction. He proposes mechanisms including FOCIL, where randomly selected participants specify transactions that must be included in the block, and if they are missing, the block is rejected, to reduce the possibility of single-builder censorship; he also suggests encrypting transactions to mitigate the risks of “toxic MEV” front-running and sandwich attacks, and introducing anonymous routing at the network layer to reduce the risk of intermediate nodes observing transactions in advance. (CoinDesk)