The Scourge: Vitalik’s Plan to Fix Ethereum’s Centralization Risks
Nov 7, 2024

Sam

Hey, Amy! Did you hear about this thing called 'The Scourge' that Vitalik is working on for Ethereum?

Amy

Yeah, I did! It’s part of Ethereum’s long-term plan to solve some major issues, especially around centralization in staking and block production.

Sam

Centralization? Isn’t Ethereum supposed to be decentralized already?

Amy

It is, but there are concerns. When too many people join large staking pools or when big entities dominate block production, it can become centralized again. Vitalik wants to make sure Ethereum stays decentralized even as it grows.

Sam

Oh, so he’s worried about big players controlling everything?

Amy

Exactly. Right now, a lot of Ethereum blocks are built using something called MEVBoost software. It’s supposed to make things fair, but in practice, only a few entities are controlling the majority of blocks. This is what 'The Scourge' aims to fix.

Sam

What’s MEV again? I always forget.

Amy

MEV stands for Maximal Extractable Value. It’s the extra value block producers can get by choosing which transactions to include and in what order. The problem is that if only a few entities are controlling this, they could end up making a lot of money at the expense of the network’s fairness.

Sam

Ah, I get it now. So how does ‘The Scourge’ plan to solve this?

Amy

Vitalik wants to spread the control of block production to more entities. One idea is to make validators—the ones who propose blocks—pick the transactions themselves, instead of relying heavily on outside builders.

Sam

So, it’s like giving more power back to the validators?

Amy

Exactly. Another idea is to use an auction system where validators can bid on different transaction orders, which would mix things up and reduce centralization.

Sam

That sounds complicated! What about staking? How’s ‘The Scourge’ going to help with that?

Amy

Well, as more ETH gets staked, the rewards go down. Vitalik suggests lowering staking rewards as the amount of staked ETH increases to keep things balanced. This way, people won’t feel forced to join the biggest staking pools just for higher returns.

Sam

That makes sense. But won’t it hurt solo stakers if rewards are too low?

Amy

It could, and Vitalik knows that. He suggested solutions like giving solo stakers extra rewards through airdrops or specialized tasks they can do to earn more.

Sam

Wow, he’s really thought about everything. It sounds like a lot of work, but I hope it keeps Ethereum fair for everyone.

Amy

Me too! It’s all about balancing growth with decentralization. If ‘The Scourge’ works, Ethereum could be even stronger and more secure.