Vitalik Buterin lays down roadmap to minimize centralization risk in Ethereum POS design ⋅ Crypto World Echo
The co-founder Ethereum Vitalik Buterin believes The fact that the centralization of evidence (POS) is a significant threat to Ethereum. The centralization of the POs is the place where the big guards dominate and the small empters join large swimming pools.
Centralization increases the risk of problems as 51% of attacks and transactions censorship. In addition, there is the risk of value extraction, where a small group benefits at the price of Ethereum users.
According to Buterin, the risk exists in the construction of blocks and the provision of capital.
The problem
Ethereum follows the supplier separation protocol (PBS) for the construction of blocks. This means that work is divided between the validators, which offer blocks and auctions on the responsibility of choosing the content of the blocks, and the manufacturers, who organize transactions in a block and place offers.
Buterin noted:
“This separation of powers helps maintain decentralized validators, but it has a significant cost: actors who perform” specialized “tasks can easily become very centralized.”
Data in October 2024 indicate that only two manufacturers are responsible for 88% of Ethereum blocks. This means that if these two manufacturers decide to censor a transaction, it can cause a delay – the processing of the transaction can take an average of 114 seconds instead of 6 seconds. Although the delay cannot affect certain transactions, manufacturers can manipulate the market by delaying urgent transactions, such as those of decentralized financing liquidations (DEFI).
Consequently, the concentration of power can constitute serious threats to the integrity of Ethereum.
Solutions
According to Buterin, one of the best solutions to avoid centralization is to further decompose the responsibilities of block production. Buterin proposes that the task of choosing the transactions should return to the proponent, or staker, and the manufacturer will only choose the control of transactions and insert part of theirs. This can be done through inclusion lists.
This is how it would work. A random staker creates an inclusion list, which includes valid transactions. A block builder, when creating a block, must include all transactions in the inclusion list, but has the power to reorganize them and add their own transactions.
Another possible solution is several diagrams of simultaneous offerors (MCP) such as braid. According to Buterin, “Braid seeks to avoid dividing the role of offering blocks in a low economy part of the scale and a high -economy part of the scale, and rather tries to distribute the process of blocking blocks between many players, in such a way that each proponent only needs an average quantity of sophistication to maximize their income.”
Buterin noted that encrypted mempools are a crucial technology required to implement the design changes set out above. By using encrypted mempools, users can disseminate their transactions in an encrypted format as well as proof of their validity. Transactions are also included in the blocks in encrypted form – the manufacturer does not know the content. Transactions are not revealed until later.
Buterin wrote that the main challenge for the implementation of encrypted Mempools is to ensure a design where transactions are definitively revealed later. This can be done thanks to two techniques: (i) Threshold decryptionand (ii) delay encryption.
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