Ethereum, renowned for its decentralized nature, is facing a significant increase in censorship, particularly regarding transactions linked to entities sanctioned by the U.S. government. This trend intensified following the U.S. sanctioning Tornado Cash, a privacy-enhancing program on Ethereum. Recent data reveals that approximately 72% of data blocks on MEV-Boost, a middleware for Ethereum validators, are censored, up from about 25% in November 2022. This censorship primarily involves excluding sanctioned crypto addresses. Four out of five major block builders on Ethereum are engaging in such censorship practices. These developments mark a departure from Ethereum's original vision of a network where "code is law," unhindered by external controls. This shift towards centralized control, led by a few key players, raises concerns about Ethereum's neutrality and potential security risks. Efforts to address this issue include censorship-curbing updates in Ethereum's roadmap, but these measures introduce new challenges, such as the emergence of private mempools, which might lead to increased fees and reduced transparency, potentially reintroducing middlemen in the decentralized ecosystem.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.