Ethereum inches even closer to total censorship due to OFAC compliance
The minting of OFAC-compliant Ethereum blocks on a daily basis has grown to 73%, adding to the community's growing censorship concerns. Considering that protocol-level censorship is deterrent to the crypto ecosystem's goal of highly open and accessible finance, the community has been keeping track of Ethereum’s growing compliance with standards laid down by the Office of Foreign Assets Control (OFAC). Over the last 24 hours, the Ethereum network was found to enforce OFAC compliance on over 73% of its blocks.Ethereum sporting 73% OFAC-compliant blocks. Source: mevwatch.info In Oct. 2022,....
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Bons noted that even with 50% OFAC compliance among Ethereum validators, blocks will still be produced within 30 seconds. Ethereum bulls have hit back against claims the network has become prone to censorship post-Merge, with one arguing that “not even a single” transaction has been censored on the network. In a 19-part thread to his 29,100 followers on Oct. 17, Cyber Capital founder and CIO Justin Bons argued that contrary to “what some Bitcoiners are falsely claiming,” not a single transaction on Ethereum has been stopped as a result of Office of Foreign Assets Control (OFAC) sanctions.....
Vitalik Buterin, the co-founder of Ethereum, frowns deeply on the possibility of Ethereum censorship by the US Treasury Department’s Office of Foreign Assets Control (OFAC). He maintained that such an action amounts to an attack on the network. Hence, it could bring results in different dimensions. Buterin disclosed his stance concerning this in a tweet. […]
With a ban on Tornado Cash, many DeFi proponents were worried that crypto exchanges, which are also key validators of Ethereum, would succumb to pressure and impose protocol-level censorship. In light of the recent ban on crypto mixing tool Tornado Cash and the subsequent arrest of the Tornado Cash developer, there has been a growing debate around what crypto services providers would choose between decentralization and censorship in form of compliance.The question has become more prominent as Ethereum (ETH) is moving from its current proof-of-work (PoW) blockchain to a proof-of-stake (PoS)....
One month after the Merge, MEV-boost relays expanded its market share as block builders, data shows. One month after the Merge, 51% of Ethereum blocks were compliant with OFAC standards, according to blockchain development Labrys' data, as MEV-Boost relays take over market share. On Twitter, users highlighted how the figures represent a milestone towards censorship, as more blocks are under surveillance:We reached another sad milestone in censorship: 51% This means if the censoring validators would now stop attesting to non-censoring blocks they would eventually form the canonical, 100%....
For a couple of years now, MEV-Boost relays or Flashbots have become popular tools in order to gather the maximum value that can be extracted from Ethereum’s block production. However, in recent times, Flashbots have been controversial as people believe the technology threatens Ethereum’s censorship-resistance. This is because Flashbots account for 48% of blocks that are compliant with government-enforced regulations. Nakamoto Coefficient or Government Coefficient? — Crypto Users Complain That OFAC-Compliant Flashbots Have Stained Ethereum’s....