Ethereum co-founder Vitalik Buterin recently shared his roadmap to reduce the risk of centralization in Ethereum’s proof-of-stake (POS) design. Centralization in POS can lead to issues like 51% attacks and transaction censorship, posing a threat to the integrity of the network and its users.
The current problem lies in the block construction process, where only two builders are responsible for 88% of Ethereum blocks. This concentration of power allows these builders to potentially manipulate the market by delaying transactions, especially critical ones related to decentralized finance (DeFi) liquidations. Vitalik Buterin highlights the need to address this centralization risk to safeguard Ethereum’s future.
To combat centralization, Buterin suggests breaking down the responsibilities of block production further. One proposed solution involves returning the task of choosing transactions to the proposer or staker, while the builder focuses on arranging the transactions. This method, utilizing inclusion lists, aims to distribute the block production process among multiple actors to prevent centralized control.
Additionally, Buterin discusses the potential of multiple concurrent proposers (MCP) schemes like BRAID to enhance decentralization. These schemes aim to involve various actors in the block production process, ensuring that each participant contributes to maintaining the network without relying on a few centralized entities.
Encrypted mempools are identified as a critical technology needed to implement these design changes effectively. By allowing users to broadcast transactions in an encrypted format along with proof of validity, transactions remain secure until included in blocks. This approach adds a layer of privacy and security to the transaction process, reducing the risk of manipulation by centralized actors.
However, challenges remain in ensuring that transactions are revealed appropriately using encrypted mempools. Techniques like threshold decryption and delay encryption can address these issues, providing a robust framework for implementing secure and decentralized block production processes in Ethereum.
In conclusion, Vitalik Buterin’s roadmap offers innovative solutions to minimize centralization risks in Ethereum’s POS design. By addressing the concentration of power in block production and leveraging technologies like encrypted mempools, Ethereum aims to enhance decentralization and protect the network’s integrity for all users.