Ethereum

2024

Value

Block

<ul class="wp-block-list">
 <li>BuilderNet decentralizes Ethereum blockbuilding to reduce censorship and centralization risks.</li>
 <li>Flashbots, Beaverbuild, and Nethermind operate BuilderNet’s first release on Ethereum’s mainnet.</li>
</ul>
BuilderNet, a decentralized block-building network for Ethereum, was <a href="https://buildernet.org/docs" target="_blank" rel="noopener noreferrer nofollow">officially</a> launched on November 26. Operated by Flashbots, Beaverbuild, and Nethermind, this network aims to address centralization issues while bolstering censorship resistance and neutrality on Ethereum.
Ethereum currently uses a proposer-builder separation <a href="https://x.com/SheaKetsdever/status/1861480598000304148" target="_blank" rel="noopener noreferrer nofollow">model</a> for block construction. Builders create blocks, and proposers select the most profitable ones. However, this specialization has led to centralization concerns.&nbsp;
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 Introducing BuilderNet. BuilderNet is a decentralized block building network for Ethereum that runs on TEEs and shares MEV &amp; gas fees with users. An early version of BuilderNet is live today — operated by Flashbots, Beaverbuild, and Nethermind. <a href="https://t.co/7gyx26hbqA" rel="noopener noreferrer nofollow">pic.twitter.com/7gyx26hbqA</a>— Shea Ketsdever (@SheaKetsdever) <a href="https://twitter.com/SheaKetsdever/status/1861480598000304148?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 26, 2024</a>
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Approximately 88% of Ethereum blocks in recent weeks were built by Beaverbuild and Titan Builder. This has raised alarm, as over 45% of blocks adhered to U.S. Office of Foreign Assets Control (OFAC) <a href="https://thenewscrypto.com/polymarket-expands-access-restrictions-amid-french-compliance-inquiry/" target="_blank" rel="noopener noreferrer nofollow">compliance</a>, highlighting a censorship issue.
BuilderNet introduces a “multi-operator” system. Trusted Execution Environments (TEEs) allow multiple entities to collaboratively build blocks, ensuring transaction verification. This approach redistributes the Maximal Extractable Value (MEV), typically taken by validators, back to users. Block builders are still compensated under a refund rule, making the system fairer and more transparent.
<h3 class="wp-block-heading" id="h-will-buildernet-transform-ethereum">Will BuilderNet Transform Ethereum?</h3>
The first release of BuilderNet operates on Ethereum’s mainnet. Flashbots plans to extend it to Layer 2s (L2s) via Rollup-Boost, making decentralized sequencing more accessible. As a drop-in solution, it aims to neutralize exclusive orderflow deals while enhancing decentralization for rollups and apps.
In the coming months, Flashbots and Beaverbuild will integrate centralized builders into BuilderNet. Flashbots plans to make BuilderNet more permissionless over time. These upgrades will enhance participation, prevent special interest capture, and maximize decentralization.
Vitalik <a href="https://thenewscrypto.com/vitalik-buterin-emphasizes-the-need-for-ethereum/" target="_blank" rel="noopener noreferrer nofollow">Buterin</a>, Ethereum’s co-founder, emphasized the risks of centralized block building. Similarly, Flashbots agrees, stating that distributing block-building tasks across a decentralized network prevents systemic chokepoints that enable censorship and rent-seeking.
BuilderNet not only counters centralization but also aims to create a collaborative ecosystem. Its initial launch serves as a focal point for future innovations. Flashbots hopes this open-progress initiative will inspire the community to accelerate decentralization across Ethereum’s ecosystem. Highlighted Crypto&nbsp; News Today <a href="https://thenewscrypto.com/fantom-ftm-ends-prolonged-bearish-trend-with-60-surge/" target="_blank" rel="noopener noreferrer nofollow">Fantom (FTM) Ends Prolonged Bearish Trend with 60% Surge</a>

Flashbots Launches BuilderNet to Decentralize Ethereum’s Block Building

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