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What are the potential drawbacks or challenges of adopting proposer builder separation in the cryptocurrency ecosystem?

avatarChesty07Dec 17, 2021 · 3 years ago3 answers

What are the potential drawbacks or challenges that may arise when implementing proposer builder separation in the cryptocurrency ecosystem?

What are the potential drawbacks or challenges of adopting proposer builder separation in the cryptocurrency ecosystem?

3 answers

  • avatarDec 17, 2021 · 3 years ago
    One potential drawback of adopting proposer builder separation in the cryptocurrency ecosystem is the increased complexity of the system. With separate entities responsible for proposing and building blocks, coordination and communication between these entities can become more challenging. This can lead to delays in block creation and potential issues with the overall efficiency of the system.
  • avatarDec 17, 2021 · 3 years ago
    Another challenge is the potential for increased centralization. If a small number of entities become dominant in the proposer role, they may have significant control over the block creation process. This could undermine the decentralized nature of cryptocurrencies and introduce potential vulnerabilities.
  • avatarDec 17, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, believes that proposer builder separation can bring several benefits to the ecosystem. However, it acknowledges that there are potential challenges as well. One of the main challenges is the need for effective governance and coordination between proposers and builders. Without proper governance mechanisms in place, conflicts of interest and coordination issues may arise, leading to potential disruptions in the system.