A potentially catastrophic situation has been faced by the network of Ethereum while planning to multiply the power of miners for the reorganization of the blockchain. As a consequence, the community of Ethereum has come forward to condemn the plans by mentioning their purpose as to manipulate a weakness in the network’s protocol.
The MEV disaster and Ethereum blockchain
A user on Twitter named ‘@EdgarArout’, a developer, speeds up the efforts to manipulate the vulnerability in MEV (miner extractable value) existing on the protocol of the network. The reorganizing of the chain for manipulating high fees of transactions charged on the consumers.
MEV means the capacity of a miner dictating where, how, and when a block to be placed with a transaction. The auxiliary revenue contained in each block can be extracted by rearranging transactions in various ways within the block through the utilization of this process.
He noted in a Twitter post that both non-conventional profits (acquired through transaction censorship, transaction insertion, and transaction reordering) as well as the conventional profits (gained through the block rewards and the transaction fees) are included in the MEV.
The arbitrage strategies of MEV presently comprise bots that indicate and execute standby trades in the mem pools of Ethereum. The process normally involves seeking an appropriate trade and subsequently replicating it with an increased gas rate for leading the originator.
A group, which studies and documents the growing utilization of the arbitrage bots existing in blockchains state that they notice the bots which engage in the transaction fees that comparatively escalate to acquire early positioning and execution in a block.
The examination of the matter provides the conclusion that some prominent risks regarding consensus-layer security are present in the process, which consecutively presents a serious threat toward Ethereum.
The project is awarded a ‘thumbs down’ by the community
The outspoken participants included ChainLinkGod (a famous Chainlink proponent), who rejected the proposal by mentioning it to be a bad idea. It added that it would result in a poor UX demanding more confirmations, as well as it will originate chain instability at the opportunity of large MEV and chain termination due to the competition among the miners for acquiring it.
The core developer of SushiSwap, Mudit Gupta, considers the project to become considerably worse than it seems as it could enable the customer to net the proceeds of digital finance manipulations, as well as rug pull the rug pullers.