Block builder centralization describes the concentration of block production power within a small number of entities. These entities select and order transactions to form new blocks on a blockchain. A higher degree of centralization means fewer participants control the sequence and inclusion of transactions. This concentration can impact network fairness and censorship resistance.
Context
The issue of block builder centralization is a significant topic in blockchain governance and security, particularly for proof-of-stake networks. Debates often focus on its potential to reduce decentralization, leading to concerns about censorship, transaction reordering, and potential manipulation of network activity. Monitoring the distribution of block production over time remains a critical indicator of network health.
Game theory proves private orderflow and latency asymmetries drive MEV-Boost to an oligopoly equilibrium, requiring new trustless orderflow mechanisms.
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