On this episode of SlateCast, Akiba from CryptoSlate spoke with Lachlan from Laybrys, the company behind the website mevwatch.info to discuss the issue of censorship on the Ethereum network, specifically in relation to validators outsourcing their block production to relays. of MV impulse, which have the ability to censor transactions. This has led to a situation where approximately 90% of transactions on the Ethereum network are being censored.
Akiba explains that the censorship is taking place due to concerns about compliance with OFAC (Office of Foreign Assets Control) sanctions. Validators are using MV enforcement relays to censor transactions originating from certain countries or involving certain individuals or organizations to avoid violating these sanctions and facing fines or other penalties.
The podcast then delves into the motivations behind the censorship and the impact it is having on the Ethereum network. Lachlan points out that validators are essentially stuck in a trap 22, as they can make more money by outsourcing block production to MV booster relays, but if they stop doing so, they risk facing penalties. They also discuss the fact that Vitalik Buterin, the creator of Ethereum, has been relatively quiet on the issue and the role of the community in addressing it.
The conversation then evolves to discuss the potential consequences of censorship, including the possibility of more restrictive regulations being put in place and the possibility of Ethereum being censored entirely. They also consider the potential for near-term solutions, such as encrypted mempools, to be implemented in the interim.
There are ethical implications of censorship, including the fact that it is effectively giving OFAC control over what happens on the Ethereum network and the potential for legitimate use cases, such as those involving Tornado Cash, to be affected. . Speakers also discuss the role of the community in addressing the problem, and the importance of demonstrating to regulators that censorship isn’t as simple as writing new rules.
There is potential to implement solutions at the protocol level and the importance of reducing the level of censorship on the Ethereum network in the short term. The podcast also emphasizes the need to preserve the decentralized nature of Ethereum and avoid setting a precedent that could allow for more censorship in the future.
Overall, the podcast highlights the complex issue of censorship on the Ethereum network and the potential consequences it could have for the cryptocurrency and its users. It also stresses the need to implement a fix as soon as possible to protect the decentralized nature of Ethereum and avoid the possibility of further censorship.
To learn more, watch the full episode available above now.
This post Exploring the issue of censorship on the Ethereum network: SlateCast #43
was published first on https://cryptoslate.com/videos/exploring-the-issue-of-censorship-on-the-ethereum-network-a-conversation-with-laybrys-slatecast-43/