A report found that 51% of validators are under the U.S. Office of Foreign Assets Control (OFAC) compliance, which means they can stop the transactions in the Ethereum network under the order of the US Treasury Department’s OFCA agency.
As all of us know very well that Ethereum is the first biggest smart contract blockchain network and the second biggest crypto asset by market cap & trade volume, just after Bitcoin. In the middle of last month, the Ethereum blockchain network shifted its operations from Proof-of-work to Proof-of-stake Consensus, after the long term huge development works.
The merge of the Ethereum blockchain from Proof-of-work to Proof-of-stake Consensus was a much-needed thing for the future adoption of the Ethereum blockchain but now this thing is raising questions on the decentralized nature of the Ethereum blockchain network and probably these increasing concerns may degrade the adoption rate of Ethereum.
Ethereum MEV follows OFCA rules
MEV is a technique employed by blockchain mining engineers to drag out the maximum possible profit by reordering transactions in a new Ethereum block. By using this technique, miners can increase their ETH staking reward by up to 60%.
Staking of Ethereum requires 32 Ethereum coins but for small stakers, ETH staking is possible via small amounts of staking pools.
A report by MEV analytics site mevWatch.info reported that 4 out of 7 top Ethereum MEV relays are under the full compliance of OFCA.
So here 4 Ethereum MEV relays may follow the order to stop the transactions in the Ethereum network but the opposite of these MEV relays others 3 are out of the OFCA rules, which may never control the Ethereum network transactions.
Martin Köppelmann, founder of interpretable crypto trade platform Gnosis for the Defi sector, said that Ethereum censorship issues are now a very big concern to us.