The road to decentralization in Ethereum: Buterin on MEV, staking simplification and node optimization

Vitalik Buterin, co-founder of Ethereum, recently delved into the challenges the Ethereum network faces with decentralization in his blog post. He noted that while issues such as miner extractable value (MEV), the complexity of staking, and the hardware requirements needed to run a node have attracted widespread attention, he believes the solutions to these issues may be simpler than generally believed.

Buterin particularly emphasized three key issues and proposed corresponding solution strategies. First, the MEV problem, which is the phenomenon where block producers manipulate the order of transactions to obtain additional profits, he suggested to deal with it through two methods: minimization and isolation. Secondly, in response to the complexity of staking, Buterin proposed a solution to lower the technical threshold and reduce hardware requirements to promote more individuals to participate in staking. Finally, he discussed the hardware requirements of nodes and looked at a future where technological innovation will enable ordinary devices to run nodes.

Buterin’s call to action is clear: He calls on the community to respect Ethereum’s unique properties and continue to improve as the network scales. He believes that by solving the MEV problem, simplifying the staking process and reducing the hardware requirements of nodes, Ethereum can further enhance its decentralized characteristics and overall resilience. This is not only a response to current challenges, but also an active investment in the health of the future network.

Mitigating the impact of MEV Achieve fairness and decentralization

MEV, or Miner Extractable Value, describes the additional benefits that block producers are able to gain by adjusting the order of transactions within a block or selectively including/excluding transactions. This approach can lead to injustice in the network because it gives an unfair advantage to those with greater resources and technical proficiency, thereby eroding the trust foundation of the network and posing a competitive disadvantage to smaller players. Buterin proposed two main strategies to mitigate the impact of MEV: minimization and isolation.

Strategies for minimizing MEV involve implementing protocols like CowSwap, which aim to reduce unfair value extraction and promote fair transactions. This prevents transactions from being manipulated by encrypting the trading pool to hide the specific details of the transaction until the transaction is confirmed. Such measures ensure that all participants, regardless of their resources or skill levels, can participate in the network on a more level playing field, thus enhancing the trust and decentralization of the network.

The strategy of isolating MEV uses the Proposer-Builder Separation (PBS) mechanism to separate the roles of validators and block builders to limit the impact of MEV. Under this mechanism, individuals proposing transactions do not have the power to decide which transactions are included in the block, which reduces the possibility of improper value extraction. Buterin also proposed inclusion lists to force inclusion of specific transactions in blocks as another possible solution.

Buterin emphasized the importance of reducing the impact of MEV, writing: "We need to make the 'MEV containment box' as small as possible." This suggests that by limiting the impact of MEV, the network can be protected from manipulation, ensuring the system's Impartiality and decentralization.

Contains checklist | Source: ethresear.ch

Simplify Ethereum Staking Lower technical threshold and hardware requirements

Individual staking on the Ethereum network currently faces a high threshold of at least 32 ETH and the need for significant technical knowledge. This has prompted many people to turn to services such as Lido and RocketPool, which may pose a threat to the decentralization of the network.

To address this complexity, Buterin proposed a series of solutions. He suggested adopting technologies such as Verkle trees and EIP-4444, which are expected to reduce the amount of data storage required by nodes to less than 100 gigabytes (GB), making it easy for personal devices to run nodes. In addition, Buterin also proposed that lowering the current pledge threshold of 32 ETH should be considered.

Buterin envisions a future where browser extension wallets also have the ability to run nodes. Nonetheless, he also pointed out that if data processing and storage responsibilities are too centralized, it may lead to the concentration of trust in the hands of a few large players.

At the same time, he warned that the wrong solution could lead to Ethereum becoming centralized, which would be tantamount to adding extra steps on top of the traditional financial system. Buterin called on the community to respect and utilize Ethereum’s unique characteristics and continue to make improvements as the network expands. By solving the MEV problem, simplifying the staking process, and reducing node hardware requirements, Ethereum will be able to increase its decentralization and overall resilience.

Conclusion:

Vitalik Buterin’s insights into Ethereum’s decentralization challenges point the way forward. The strategies he proposed to solve the MEV problem, simplify the staking process, and reduce node hardware requirements are aimed at building a fairer, more open, and more resilient network. Buterin’s vision inspires us to work together to ensure that Ethereum can stay true to its core values ​​while continuing to innovate and advance.

Faced with the challenge, Buterin’s call to action was clear and unambiguous: the community must respect Ethereum’s unique properties and continue to improve as the network expands. Through these efforts, Ethereum will not only be able to cope with current problems, but also continue to play a leading role in the future of cryptocurrency and promote positive changes in the global financial system.

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