BuilderNet Launches to Decentralize Ethereum Block Building and Combat Censorship
BuilderNet, a decentralized network designed to address centralization and censorship in Ethereum block building, officially launched on November 26. Operated by Flashbots, Beaverbuild, and Nethermind, the initiative seeks to bolster Ethereum’s neutrality and improve censorship resistance.
Decentralizing Ethereum’s Block-Building Process
Ethereum’s current block-building model separates block proposers and builders, where builders construct blocks, and proposers select the most profitable ones. While effective, this system has led to centralization concerns.
Recent data shows that 88% of Ethereum blocks were built by Beaverbuild and Titan Builder, with over 45% adhering to U.S. OFAC compliance. This concentration has raised alarms about censorship and lack of decentralization.
BuilderNet introduces a “multi-operator” framework that uses Trusted Execution Environments (TEEs) to enable multiple entities to collaboratively build blocks. This approach redistributes Maximal Extractable Value (MEV) from validators back to users while maintaining builder compensation through a transparent refund rule.
Future Implications for Ethereum
BuilderNet’s initial deployment on Ethereum’s mainnet sets the stage for broader decentralization. Plans include extending the network to Layer 2 solutions (L2s) through Rollup-Boost, aiming to neutralize exclusive orderflow agreements and enhance rollup decentralization.
Flashbots and Beaverbuild also intend to integrate centralized builders into BuilderNet and make the system more permissionless over time, increasing participation and reducing the risk of special interest dominance.
A Collaborative Vision for Ethereum
Vitalik Buterin, Ethereum’s co-founder, has previously warned about the risks of centralized block-building systems. BuilderNet aligns with his vision by creating a distributed ecosystem that minimizes systemic chokepoints, censorship, and rent-seeking behaviors.
Flashbots views BuilderNet’s launch as a foundation for future innovations, inviting the Ethereum community to accelerate decentralization efforts across the ecosystem. By fostering collaboration and transparency, BuilderNet aims to transform Ethereum’s block-building landscape while enhancing its resilience against centralization and censorship.
