One of Ethereum’s biggest problems will be solved thanks to a new solution
Ethereum’s OFAC compliance has been a hot topic in the cryptocurrency industry since the merge went live. More than 73% of blocks on the network are OFAC-compliant, according to MevWatch data, which is censored by the US financial regulator. However, Vitalik Buterin and the Flashbots research and development organization have a solution.
The maximization of profit has been the number one priority for validators despite the gradual spread of censorship on the network. Thanks to the MEV, validators increase their rewards by up to 60% thanks to selling free blockspace.
However, OFAC compliance is not something the decentralized network should be proud of, given the lack of transparency in the regulator’s decision-making process. To avoid conflicts in the future, a new solution is presented, which should reach a consensus between profit-making and network resiliency.
A new feature will allow validators to maximize censorship resistance by building low-MEV blocks locally while outsourcing the “expensive” blocks and selling the free blockspace. By using this feature, those who are willing to push a “censored” transaction through will be able to do so thanks to the descending percentage of OFAC-compliant blocks on the network. The solution is presented as a breakthrough in profit maximization while using MEV-boosters and increasing the network’s resilience.
However, some experts do not share the panic about OFAC compliance because almost any “limited” transaction will eventually run on the network if there is at least one validator who is willing to accept and process transactions that others have made. Rejected. The case in which there are no uncensored validators on the network is close to impossible.