Vitalik Buterin, the co-founder of Ethereum, has recently published an article. The document discusses problems like the balance between quarantining MEV while emphasizing the requirement for resilient solo staking as well as minimizing node requirements. In that article, he stressed the utilization of EIP-4444 and Verkle trees in this regard.
Ethereum Co-Founder Discloses the Network’s New Developments to Solve the MEV Issues
As per the title, the article focuses on the enhancement of Ethereum’s decentralization and permissionlessness. While disclosing the impending upgrades of the network, Buterin pointed toward Verkle tree transition and PeerDAS. In addition to this, he also talked about decentralized approaches for the storage of history with EIP-4444. He added that the inclusion of the respective updates denotes Ethereum’s huge capacity to incorporate significant features.
As per Buterin, these things will likely enhance the experience of the L2 and L1 users along with node operators. Formerly, Ethereum (ETH) reportedly used a p2p network where miners would accept the transfers and validate them after taking fees. Nonetheless, people reportedly began the exploitation of the miner extractable value in that simple system. Following that time, the market has seen several discussions over MEV quarantining and MEV minimization.
There are two forms of MEV minimization. One deals with aggressive working on MEV-free substitutes for Uniswap. The other form deals with the development of in-protocol techniques such as encrypted p2p networks. This minimizes the information for the block producers to decrease the revenue moving to them. Specifically, this encryption prevents strategies like sandwich attacks.
On the other hand, MEV quarantining operates by obtaining MEV. However, it attempts to restrict the effect of the centralization of staking. In this respect, it separates the market among validators and builders. The former actors attest and propose blocks while the latter ones choose the block’s contents. They do this via an auction protocol. The Ethereum co-founder also revealed the current status of the platform in this matter.
Vitalik Says the Company Nears Its Target to Increase Decentralization
Buterin noted that the researchers on the network are already making great endeavors to decrease the quarantine box. They are reportedly attempting to minimize the damage that the builders can inflict. This includes the exclusion or delay in transfers on the part of the builders to exploit particular applications. The executive claimed that the platform is doing all this to improve Ethereum’s decentralization.
