Ethereum co-founder Vitalik Buterin recently wrote a detailed blog post. In this article, Buterin discussed the basic decentralization issues facing the Ethereum network. Buterin’s views focus on three critical areas. These are Miner Minerable Value (MEV), staking complexities, and hardware requirements for running nodes.
Reduction of initial MEV
MEV refers to the profit block producers can make by reordering, including or excluding transactions within a block. MEV allows those producing Ethereum blocks to manipulate transactions to generate extra profit. This manipulation gives an advantage to those with more resources and technical knowledge. Thus, it is possible that it makes the system unfair. It undermines trust in the network, making it difficult for smaller participants to compete. Buterin outlines two basic approaches to reducing MEV. These are: minimization and quarantine.
MEV minimization promotes fair trading by reducing unfair value extraction through protocols such as CowSwap. Encrypted transaction pools (mempools) prevent exploitation by hiding transaction details until confirmed. This approach allows all participants to interact fairly, regardless of their resources or technical skills. Thus, it increases trust and decentralization in the network.
MEV quarantine limits the impact of MEV by separating the roles of validators and blockers via Proposer-Component Separation (PBS). This setup means that those who propose transactions do not have the power to include them in blocks, reducing the risk of extracting value. Vitalik Buterin also suggested that inclusion lists that enforce certain transactions in a block could also be a solution. In this context, Buterin wrote, “We need to make the ‘MEV quarantine box’ as small as possible.”
Ethereum Staking Complexities
Staking alone on Ethereum currently requires at least 32 ETH. Additionally, significant technical expertise is required. This requirement leads to many people using services like Lido and RocketPool, putting decentralization at risk. Buterin proposed several solutions to reduce hardware and data storage needs for nodes. Technologies like Verkle trees and EIP-4444 could make it possible for nodes to run on personal devices by reducing storage needs to less than 100 gigabytes. He also suggested lowering the minimum for staking to 32 ETH.
The Ethereum co-founder envisions a future where even browser extension wallets can run nodes. However, he acknowledges the challenge that offloading data storage responsibilities could centralize trust in a few large actors. cryptokoin.comAs you follow from, Vitalik Buteri often brings up the ideas of developing Ethereum in his articles.
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