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Two Companies Dominate 90% of Ethereum Blocks: The Untold Story of Titan’s Monopoly
The Genesis of Ethereum Block Building Monopoly
A fascinating development unfolded in the Ethereum blockchain space where a remarkable shift in block creation occurred with just two companies at the forefront.
It all began in late 2022 when Flashbots introduced MEV-Boost, a groundbreaking software that enabled Ethereum L1 validators to access transaction blocks from specialized builders, enhancing their earning potential. The adoption of this software by most validators marked a significant turn of events.
The Rise of Titan and Beaver
Originally, Flashbots stood alone in the builder space (#1), but within six months, fierce competition emerged leading to the dominance of two key players: Beaver and Titan (#3).
One pivotal moment was when Titan secured an exclusive order flow (EOF) agreement with Banana Gun, a prominent Telegram trading bot, in April 2023. This strategic move allowed Titan to create more lucrative blocks for L1 validators, thereby consolidating their position.
Profit Disparities and Intriguing Questions
As of August this year, the earnings breakdown reveals a stark contrast:
- Flashbots: 550,000 blocks created, 16.7 ETH profit
- Titan: 600,000 blocks created, 13,151 ETH profit
The staggering $44 million difference underlines Titan’s dominance, prompting questions about their partnership with Banana Gun and potential kickbacks affecting user experience.
Chain Abstraction: A Path to Greater Opportunities
Looking ahead, chain abstraction emerges as a transformative force driving profit maximization amidst evolving market dynamics. Austin King’s contemplation of this deal stems from the potential unlocked by seamless user experiences and revenue streams in the crypto landscape.
With a focus on Omni Network’s core primitives and the integration of revenue opportunities in the token model, new horizons for income generation come into view.
Author: Felix
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