What Is the Risk of Centralization Associated with Using a Limited Number of Private Transaction Relays? ▴ Learn

What Is the Risk of Centralization Associated with Using a Limited Number of Private Transaction Relays?

Relying on a small number of private transaction relays can lead to centralization of the block production process. If only a few entities control the private order flow, they gain disproportionate power over transaction ordering and MEV capture.

This undermines the decentralized nature of the blockchain and introduces a single point of failure or censorship risk. It also concentrates the MEV profit among a few actors.

Explain the Difference between MEV in Proof-of-Work (PoW) and Proof-of-Stake (PoS) Consensus Mechanisms

How Do Different Consensus Mechanisms (E.g. PoS Vs. PoW) Influence Transaction Ordering Manipulation?

How Does a Mutable Smart Contract Differ Fundamentally from an Immutable One in Terms of Security?

Does a Higher Staking Requirement for Validators Reduce MEV Risk?