Cryptheory: NFT, Play-to-Earn, Crypto News

24/7 crypto news, cryptocurrency meaning, guides, learning, #cryptohelpschildren

Someone proposed a tool to reorg ETH blocks. But its “too dangerous” and “shouldn’t exist”

2 min read

The ETH network faces a potential crisis through plans to increase the power of miners to re-organize the blockchain.

The ETH blockchain has a MEV crisis

Twitter user @EdgarArout, a developer, is stepping up attempts to exploit a miner extractable value (MEV) vulnerability that exists on the ETH protocol. This would involve re-organizing the chain to exploit high transactions fees paid by users.

MEV refers to a miner’s capacity to dictate when, how, and where a transaction is placed into a block. This process can be used to extract additional revenue per block by reorganizing transactions in different ways inside the block.

“MEV includes both ‘conventional’ profits from transaction fees and block rewards, and ‘unconventional’ profits from transaction reordering, transaction insertion, and transaction censorship within the block a miner is producing,” he wrote in a post.

MEV arbitrage strategies currently exist involving bots that identify and target trades waiting in ETH mem pools. This typically involves waiting for a suitable trade, then copying that trade with a higher gas price to front-run the originator.

Flashbots is a group that documents and studies the rising use of arbitrage bots in blockchains. They say they observe bots engaging in competitively bidding up transaction fees to get early block positioning and execution.

Their work on the matter leads them to conclude that this process poses a risk to consensus-layer security, which in turn presents a “realistic threat to ETH.”

But EdgarArout’s proposal will, in effect, help miners re-organize the ETH blockchain to extract as much MEV as they can.

The community gives it a thumbs down

Unsurprisingly, this has been met by strong resistance from the ETH community.

Vocal members included the popular Chainlink proponent “ChainLinkGod,” who slammed the proposal calling it “not a good idea.” “Helping miners reorg the ETH blockchain to retroactively extract MEV is not a good idea. Not only will it result in a worse UX (more confirmations) but can cause chain instability when a large MEV opportunity occurs and the chain halts due to miners fighting for it,” they said.

SushiSwap core developer Mudit Gupta thinks could get much worse than that. He says such a re-org service could lead to miners netting the proceeds of DeFi exploits for themselves or even rug pulling rug pullers.

Gupta likened it to a 51% attack but in the form of a product. However, he conceded that the community is powerless to stop EdgarArout from proceeding with his plans. Adding that, all that can be done is to minimize opportunities for exploitation.

The post Someone proposed a tool to reorg ETH blocks. But its “too dangerous” and “shouldn’t exist” appeared first on CryptoSlate.


All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

Leave a Reply

Your email address will not be published.