Relayer, Blocknative Discontinue On Ethereum Network Causing High Centralization
Portfolio Pulse from Khyathi Dalal
Blocknative, a relayer for the Ethereum platform, has announced its exit from the network due to economic unviability, reducing the number of active relayers to four. This has raised concerns about high centralization in the Ethereum network. The transition to the Proof-of-Stake mechanism has led to well-resourced block builders running their own relays. Experts suggest a relayer fee mechanism should be activated to prevent further centralization.
September 28, 2023 | 7:26 pm
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The exit of Blocknative from the Ethereum network and the resulting high centralization could potentially impact the value of Ethereum. The transition to the Proof-of-Stake mechanism has also contributed to this centralization.
Blocknative's exit from the Ethereum network reduces the number of active relayers to four, leading to high centralization. This could negatively impact the perception of Ethereum's decentralization, potentially affecting its value. Additionally, the transition to the Proof-of-Stake mechanism has led to well-resourced block builders running their own relays, further contributing to this centralization.
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