Ethereum Founder Buterin Addresses Major Community Concerns

• Ethereum dominance has dropped after a market dip, sparking a period of recalibration.
• Vitalik Buterin has proposed upgrades to tackle scalability and a controversial profit-making scheme for miners.
• A novel technique to reduce storage requirements for nodes, the backbone of the network, has been proposed.
  

Ethereum , the world’s second-largest cryptocurrency, is undergoing a significant fundamental shift. After a recent market dip, its dominance has fallen from 17.51% to 15.41% in just two weeks. The price currently sits at $3,109, with bulls attempting to regain control. However, beneath the surface of price charts, a more fundamental shift is taking place.

Ethereum’s Fight Against MEV

Vitalik Buterin , Ethereum’s co-founder, recently outlined a series of upcoming improvements aimed at bolstering decentralization and scalability. This focus on core principles comes amidst growing concerns about Maximal Extractable Value (MEV), a phenomenon where miners can extract extra profit from DeFi activities, potentially compromising fairness.

In the past I've felt people are trying to solve issues while protecting the protocol's integrity. Nowadays I feel research & co just head on dived into solving all problems by delegating it to outside entities and slapping a signature on it under the name of crypto.

— Péter Szilágyi (karalabe.eth) (@peter_szilagyi) May 16, 2024

The article addresses MEV head-on, acknowledging existing strategies like Cowswap and encrypted mempools for minimizing exploitable information. Additionally, Buterin emphasizes “MEV quarantining,” a technique that separates block proposing from content selection.

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This allows validators to focus on proposing blocks while specialized builders compete through an auction to determine block contents. This approach aims to limit the impact of MEV while recognizing its complete elimination might not be feasible.

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Decentralization remains a paramount concern for Ethereum. Buterin highlights the importance of accessible nodes, the backbone of a decentralized network. He proposes utilizing EIP-4444 and Verkle trees to potentially reduce node storage requirements to under 100 gigabytes or even near-zero.

Grats @dankrad @peter_szilagyi you got me to interrupt my work on EIPs and make a twitter response that turned into an unscheduled poast 　　Disclaimer: Includes third-party opinions. No financial advice. See Risk Warning.