After the transition of Ethereum to the Proof-of-Stake algorithm, new participants will appear in its network – block constructors. Their appearance will change the entire decision-making structure in the Ethereum network, Bloomberg analysts report.
There are currently two stakeholders in the ETH network: users and miners. The former pay a fee to have their transactions processed by the latter. Those respectively place transactions in blocks in a certain order.
After switching to the Proof-of-Stake model, this process will take place according to a different principle – miners will be replaced by validators. The task of the constructors is to collect transactions into blocks and send them to the validators. This distribution of roles was conceived to increase the decentralization of Ethereum and deprive validators of the status of “key PoS players”.
But such a decision only exacerbated concerns about the future of the Ethereum network. It is already known about 416 thousand validators who will be ready to confirm transactions in the updated Ethereum network. At the same time, now only a few network participants are ready to perform the functions of “block constructors”. The largest of them are flashbots (“flash bots”), whose task is to help traders with transactions.
Network members fear that flash bots will have a big impact on the network if a popular crypto wallet service like MetaMask starts sending all transactions to a single constructor.
But these are not all the problems that the network of the updated Ethereum may face. If there are few designers, they will have to pay large fees to support the network. At the same time, validators will earn less, which may lead to a decrease in their number.
Analysts note that Ethereum’s transition to Proof-of-Stake, designed to help increase the speed, efficiency and scalability of the network, has the potential to make Ethereum more centralized than ever.
Earlier it was reported that Ethereum rose by 106% from the June low before the promised transition to Proof-of-Stake.