Ethereum Researcher’s New Idea to Stop Insider Trading
In the fast-changing world of blockchain and cryptocurrency, it’s important to keep things fair and open. Recently, an Ethereum researcher named Malik672 suggested a new way to stop insider trading on the Ethereum network. This is because the network has been becoming more centralized, which means a few people could control it and manipulate it. Let’s learn more about this new idea and what it means.
The Problem: Too Much Control in Few Hands
Ethereum, like other blockchain networks, has a problem with centralization. This happens when a small number of entities control most of the network’s operations, like building blocks. In October 2024, it was noticed that almost 89% of Ethereum blocks were handled by just two block builders, Beaverbuild and Titan Builder[3]. Even though this number has gone down to about 80% by February 2025, it’s still a big concern[3].
Malik672’s New Idea: A Fairer Way to Build Blocks
Malik672’s proposal is to use a decentralized random block proposal system. This would spread block building across thousands of clients all over the world. A special algorithm would be used to choose who builds the next block in a fair and random way[3]. The goal is to stop insiders from using secret information to make money for themselves. This way, the network can be more like its original idea of being decentralized[3].
How It Would Work
The new system would use something called Byzantine Fault Tolerance (BFT) to make sure the network keeps working even if some nodes try to cheat[3]. Validators would check and agree on the state of the blockchain, which would make the network more trustworthy and fair[3]. This would also help to reduce something called Maximal Extractable Value (MEV), which is how insiders make money from secret information.
Possible Problems
While this new idea has many benefits, it also has some possible problems. One is that it might make the network run slower because of the extra work it would have to do[3]. There’s also a risk of something called a Sybil attack, where a bad actor creates many fake clients to have more control[3]. Lastly, having many block builders might make it harder to agree on which transactions should be included in a block, which could lead to more disputes[3].
Conclusion: A Step Towards Fairness
What It Means and What’s Next
Malik672’s algorithm is a big step towards making the Ethereum network truly decentralized. By fixing the centralization problem and stopping insider trading, this idea helps Ethereum live up to its values of fairness and openness. However, it’s important to test and improve this system carefully to avoid its possible problems. As blockchain technology keeps changing, ideas like these will be crucial for keeping networks safe, fair, and decentralized.
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Sources:
– zycrypto.com
– theoverspill.blog
