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 transparent. Recently, an Ethereum researcher named Malik672 suggested a new way to stop insider trading on the Ethereum network. This idea comes because some people control too much of the network, which can lead to cheating. Let’s learn more about this proposal and what it means.
The Problem of Too Few People Controlling the Network
Ethereum, like other blockchain networks, has a problem with centralization. This happens when a few entities control most of the network’s operations, like building blocks. In October 2024, it was found that just two block builders, Beaverbuild and Titan Builder, handled nearly 89% of Ethereum blocks[3]. Even though this number has gone down to about 80% by February 2025, it’s still a big concern[3].
The New Proposal
Malik672’s idea is to use a decentralized random block proposal system. This would spread block building across thousands of clients worldwide, using a special random algorithm[3]. The goal is to stop insiders from using market information to cheat, which is called block-level Maximal Extractable Value (MEV). By letting more people build blocks, the network can work more like it’s supposed to – in a decentralized way[3].
How It Would Work
The proposed system uses something called Byzantine Fault Tolerance (BFT) to make sure the network keeps working even if some people try to cheat[3]. Validators check and agree on blocks, which helps reduce MEV and makes the network fairer and more trustworthy[3].
Possible Problems
While this idea has many good points, it also has some potential issues. One is that it might make the network run slower because of the extra work[3]. There’s also a risk of Sybil attacks, where someone creates fake clients to gain more control[3]. Lastly, having many block builders might lead to more arguments about transactions[3].
A Step Towards a More Decentralized Network
Summary and What’s Next
Malik672’s algorithm is a big step towards making the Ethereum network truly decentralized. By fixing the centralization issue and reducing insider trading, this proposal helps Ethereum stay fair and transparent. However, it’s important to test and improve this system carefully to avoid its potential problems. As blockchain technology keeps changing, ideas like these will help make sure networks stay secure, fair, and decentralized.
—
Sources:
– zycrypto.com
– theoverspill.blog
