Website Data mevwatch.info It shows that one month after the update of Marj Ethereum, 51% of the blocks of the network of this digital currency are made using services that comply with US sanctions. This issue has increased the concern of experts about the application of US economic sanctions on the Ethereum network.
To Report Kevin Telegraph, Martin Köppelmann, co-founder of Gnosis, said:
We have reached another disturbing milestone in the discussion of transaction censorship: 51%. This means that if validators facilitating censorship decide to stop validating censored blocks, they will eventually be able to conventionally form a 100% censored chain.
The Office of Foreign Investment Control (OFAC) is the agency responsible for the implementation of commercial and economic sanctions in the United States and operates under the supervision of the Treasury Department. The mentioned services (MEV-Boost relays) are also centralized entities that act as intermediaries between block producers (validators) and block producers. In this way, all Ethereum Proof-of-Stake network validators will be able to outsource the block production process and provide this role to other network block creators.
The chart above shows what percentage of blocks on the network have been created using intermediaries that comply with OFEC sanctions since Ethereum’s Marj upgrade was implemented. By changing Ethereum’s mechanism from proof-of-work to proof-of-stake, these services made it possible for the production of blocks to be done in a more distributed way on the Ethereum network, and this role was no longer in the hands of a small group of miners.
Lyn Alden, strategist and investment expert, says in this regard:
The production of Ethereum blocks has reached 51% compliance from 9% compliance with OFEC sanctions in the past month, and the share of block production outsourcing services has also increased.
“It doesn’t matter how long you’ve been waiting for a transaction,” said Lachan Feeney, CEO of Labrys, which provided the data on the mevwatch.info website. or how much you paid for its fee; “You can never reach a point where your sanctioned transactions are included in the blockchain.”
According to Finney, under this scenario to censor transactions on the Ethereum network, nodes would be legally forced to discard blocks containing such transactions.
He says that even if the sanction is implemented in a softer way, i.e. a situation where the sanctioned transactions are also finally confirmed on the network, the waiting time for the sanctioned transactions to be confirmed will probably be longer and their fees will be higher, and as a result the user experience of operating on the Ethereum network will be in a way It will be non-standard.
According to the description of the Labriz group, there are currently 7 main services providing Ethereum block production outsourcing services, including “Flashbots”, “BloXroute Max Profit”, “BloXroute Ethical”, “BloXroute Regulated”, “BlockNative”, “Manifold” and ” Eden” and out of these 7 services, 3 of them do not comply with OFAC sanctions. Blocks made with the other 4 services do not include any transactions associated with Tornado Cash smart mixer contracts or other addresses sanctioned by the US government.