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Ethereum news (ETH): Vitalik Buterin unveils plan to curb block builder centralization

CoinDesk
Vitalik Buterin proposed solutions to prevent centralization in Ethereum's block building process despite upcoming proposer-builder separation.

Summary

Ethereum co-founder Vitalik Buterin has outlined several ideas in a new blog post to combat the growing centralization risk within block building, the process of assembling transactions before they are finalized on-chain. While the upcoming "Glamsterdam" upgrade formalizes proposer-builder separation to introduce a competitive market for block construction, Buterin argues this alone is insufficient if a few builders dominate. His proposals include FOCIL, an anti-censorship mechanism where randomly selected participants mandate transactions for inclusion in the next block, which would otherwise cause the block to be rejected. Furthermore, Buterin addressed "toxic MEV," where traders exploit transaction visibility; potential fixes involve encrypting transactions until finalization and implementing anonymized routing systems to defend against intermediaries observing transactions at the networking layer. Longer term, he envisions more distributed block building that avoids tightly ordered global coordination for much of Ethereum's activity.

(Source:CoinDesk)