Ethereum: A New Plan 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 idea comes because some people control too much of the network, which isn’t good for everyone.
The Problem: Too Much Control
Ethereum, like other blockchain networks, has a problem with too few people controlling too much. This happens when a small group handles most of the network’s work, like building blocks. In October 2024, nearly 89% of Ethereum blocks were handled by just two groups, Beaverbuild and Titan Builder[3]. Even though this number has gone down to about 80% in February 2025, it’s still a big concern[3].
A New Plan: Fair Block Building
Malik672’s plan is to use a decentralized random block proposal system. This means many people around the world would help build blocks, using a special random algorithm[3]. The goal is to stop something called block-level Maximal Extractable Value (MEV), which lets insiders cheat for their own gain. By involving more people, the network can be fairer and more in line with its decentralized ideas[3].
How It Works: Keeping the Network Safe
The new system uses something called Byzantine Fault Tolerance (BFT) to keep the network running even if some people try to cheat[3]. Validators check the blocks, and most of them have to agree for the blockchain to work. This way, MEV is reduced, and the network is more trustworthy and fair[3].
Possible Problems: More to Think About
While the plan has many good points, there are also things to worry about. One is that it might make the network run slower because of all the extra work[3]. There’s also a risk of Sybil attacks, where someone makes fake clients to gain more power[3]. Lastly, having many block builders might lead to more arguments about transactions[3].
A Step Towards Fairness: The Future of Ethereum
Malik672’s plan is a big step towards making Ethereum truly decentralized. By fixing the control problem and stopping insider trading, this idea helps Ethereum be fair and open, which are its main goals. But it’s important to test and improve this plan to avoid the possible problems. As blockchain technology keeps changing, ideas like this will help make sure networks are safe, fair, and decentralized.
—
Sources:
– zycrypto.com
– theoverspill.blog