Chainfeeds Summary:
Regarding the current situation where the two major block builders, Beaverbuild and Titanbuild, have collectively built over 95% of Ethereum blocks, crypto researcher Jarrod Watts has written an article analyzing the reasons behind this and providing a detailed explanation of the proposed solution, EIP-7805.
Source:
https://x.com/jarrodWattsDev/status/1859764880691298713
Author:
Jarrod Watts
Viewpoint:
Jarrod Watts: To understand this 95% figure, we need to quickly cover three topics: 1) MEV: To create a block, validators select transactions from the mempool (the queue of pending transactions). By carefully choosing which transactions to include or exclude, and the order in which they are processed, the block builder can maximize their profits. This profit extraction/maximization is known as MEV. 2) MEV-Boost: Some are very skilled at profiting from MEV. They are even willing to pay fees to create blocks because they can gain more from MEV. By using MEV-Boost, validators can increase their own revenue by selling blocks to these block builders. 3) Proposer-Builder Separation (PBS): Validators no longer build and propose blocks themselves, but rather most validators participate in the market provided by MEV-Boost. In this market, professional block builders create blocks and pay validators to propose these blocks. EIP-7805 proposes a solution called FOCIL: Fork-choice Enforced Inclusion Lists. It ensures that block builders cannot censor transactions. The core mechanism of EIP-7805 is as follows: In each slot (before each block), a committee of 16 validators is selected as the inclusion list committee members. Each committee member will create their own inclusion list, which is a list of transactions from the mempool that must be included in the next block. Block builders must include the transactions in these inclusion lists. Validators can only vote (i.e., sign) on blocks that include all the transactions in the inclusion lists. Blocks that do not include these transactions will be considered invalid and will not become part of the blockchain. While this may not reduce the centralization of block building, it is a significant step forward in improving Ethereum's censorship resistance. EIP-7805 returns more power to the validators, allowing them to specify the specific transactions that block builders must include (rather than censor).
Source
