Ethereum Researcher Proposes Solution to Decentralize Block Proposals and Eliminate MEV

An Ethereum researcher, known by the pseudonym “Malik672,” has introduced a new proposal aimed at addressing the growing concerns of centralization in Ethereum’s block-building process. The proposed solution, called the Decentralized Random Block Proposal, seeks to democratize the currently centralized process of block proposing by leveraging a “shared random algorithm.” This solution also claims to eliminate Maximal Extractable Value (MEV) at the block level, a key issue contributing to network manipulation and unfair profit extraction.

Democratizing Block Proposals

Currently, Ethereum’s block proposal process is largely controlled by a small number of entities, despite the network’s shift to a proof-of-stake (PoS) consensus model and the introduction of proposer-builder separation (PBS). While PBS has reduced some concentration of MEV, it has also resulted in a more centralized block-building ecosystem, with large builders and relays becoming dominant players.

Malik672’s proposal aims to address this centralization by implementing Byzantine Fault Tolerance (BFT), a consensus mechanism that ensures system robustness and reduces the potential for manipulation. The researcher argues that the new approach would allow for block construction to be distributed across thousands of clients globally, eliminating the dominance of any single entity. This, in turn, would fully democratize the process and make Ethereum’s block-building ecosystem far more decentralized.

Addressing the MEV Problem

Maximal Extractable Value, or MEV, is the profit extracted by block proposers or builders by reordering or censoring transactions in ways that benefit them financially. Common MEV strategies include arbitrage and front-running, both of which exploit the transaction ordering process for profit at the expense of regular network users.

This profit-driven manipulation undermines the decentralized ethos that Ethereum aims to uphold, according to Malik672. By implementing a cryptographically random algorithm for block building, the proposal seeks to eliminate the ability for any single entity to engage in MEV-driven tactics, thus reducing the exploitation of network participants.

Under the proposed system, Ethereum clients — rather than a select group of builders — would construct blocks based on the random algorithm, ensuring that the process is transparent, fair, and immune to profit-driven manipulation.

Improving Efficiency and Compatibility with Ethereum’s Technical Roadmap

In addition to decentralizing the block proposal process, Malik672’s solution may also help improve Ethereum’s performance. The proposal suggests that the adoption of the random block-building algorithm could potentially reduce the time it takes to create new blocks from 12 seconds to approximately 6 to 8 seconds. This reduction in block times would accelerate transaction propagation, the process by which transactions are broadcast to network validators, enhancing overall network efficiency.

Moreover, the proposal is designed to be compatible with Danksharding, a major Ethereum upgrade aimed at scaling layer 2 solutions. Danksharding focuses on improving data availability and throughput, making the Ethereum network more scalable and efficient in handling larger volumes of transactions.

Tackling Centralization Concerns

Malik672’s proposal comes in response to concerns raised by Ethereum Foundation researcher Toni Wahrstätter, who highlighted the growing centralization in the Ethereum ecosystem. In October, two Ethereum block builders — Beaverbuild and Titan Builder — were responsible for over 88% of the Ethereum blocks produced in just the first two weeks of the month. While this figure has decreased to around 80%, it is still far higher than what the Ethereum community deems acceptable.

By distributing block-building responsibilities to thousands of clients worldwide, the Decentralized Random Block Proposal aims to prevent the concentration of power in the hands of a few builders, ultimately ensuring that Ethereum remains a decentralized and trustless network.

The Road Ahead for Ethereum’s Upgrades

This proposal comes amid growing efforts within the Ethereum community to accelerate the deployment of network upgrades. On February 13, Ethereum developers and researchers agreed to deploy upgrades at a faster pace to advance Ethereum’s technical roadmap more quickly. Malik672’s proposal is a step in that direction, aiming to address some of the most pressing issues facing Ethereum while reinforcing the network’s commitment to decentralization.

As the Ethereum community continues to innovate and refine its protocol, solutions like the Decentralized Random Block Proposal could play a key role in shaping the future of the network and ensuring that it remains secure, decentralized, and efficient.