Flashbots’ BuilderNet: Addressing Ethereum Block Builder Centralization

Hey there! Have you ever wondered about how blockchain technology works behind the scenes? Well, let me tell you about a fascinating aspect called block building.

So, there’s this complex market where different players are paid to put together blocks on a blockchain. But here’s the catch – a big part of this market is controlled by just two players, Beaverbuild and Titan. This duopoly isn’t great for users because it leads to something called maximal-extractable value (MEV), which basically means end users may not be getting all the value they deserve.

To tackle this issue, the team at Flashbots has come up with an exciting solution called BuilderNet. This new block building network is designed to give back more MEV and gas fees to users, which is pretty awesome if you ask me.

BuilderNet will work alongside existing players like Nethermind and Beaverbuild, but it aims to change how block building is done. Instead of a few big players dominating the scene, BuilderNet will bring in a “multioperator network” where everyone can work together to build blocks and get rewarded based on their contribution.

The best part? Any application can join BuilderNet and get paid for submitting transaction orders. And don’t worry, your transactions will stay private thanks to some fancy encryption technology.

This new approach is a game-changer in the block builder market, where some players have been trying to keep all the MEV for themselves. BuilderNet is here to level the playing field and make sure that everyone gets a fair share of the pie.

While BuilderNet will focus on Ethereum for now, it plans to expand to other blockchain networks in the future, making decentralized sequencing even more efficient and fair.

So, there you have it – an innovative solution to address centralization in block building. Keep an eye out for BuilderNet, it’s set to shake things up in the blockchain world!