Originally published on: November 27, 2024
Flashbots, a prominent blockchain infrastructure firm, has introduced BuilderNet, a decentralized block-building network on the Ethereum platform. The primary goal of BuilderNet is to eliminate censorship and address a significant bottleneck within the network.
BuilderNet, which went live on Nov. 26, aims to enable collaborative block-building among multiple parties. This initiative comes as a response to the dominance of Beaverbuild and Titan Builder, responsible for nearly 88% of all Ethereum blocks in recent weeks.
Described as a game-changer by Coinbase’s protocol specialist, Viktor Bunin, the launch of BuilderNet is set to disrupt exclusive order flow deals and censorship issues on Ethereum.
According to Shea Ketsdever, Flashbots’ product manager, the initial release of BuilderNet is now operational on Ethereum’s mainnet. The platform will also serve as a plug-and-play solution for decentralized sequencing on layer 2s in the near future.
Ethereum’s block construction process follows the proposer-builder separation model, where builders create blocks for proposers to review and select the most profitable one. However, this specialization has led to centralized control, as noted by Ethereum’s co-creator, Vitalik Buterin.
By distributing the block-building process across a broad network, Flashbots aims to eliminate chokepoints susceptible to censorship and rent extraction. Nearly 45% of Ethereum blocks have faced censorship in the past five months due to regulatory compliance requirements.
BuilderNet operates on a multi-operator system within a Trusted Execution Environment, allowing all protocols and users to verify transactions securely. This approach redistributes maximal extractable value (MEV) back to users while compensating block builders through a refund rule.
The impact of BuilderNet’s implementation could disrupt major players like Titan Builder, known for accumulating substantial profits through MEV-Boost. Future releases of BuilderNet will focus on enhancing permissionless features to enhance censorship resistance and decentralization.
Flashbots had previously worked on a decentralized block-building solution called SUAVE, but a full-scale rollout was not achieved. The launch of BuilderNet marks a pivotal moment in revolutionizing Ethereum’s block-building process and promoting decentralization within the network.