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The technical architecture of Ethereum makes it impossible to prevent a few powerful actors from controlling the entire network.

Proposer-Builder Separation was designed to improve efficiency, but it created an environment where power naturally clusters at the top. Decentralized systems are supposed to resist central control by their very nature. This analysis shows that the specific way the network handles transaction data forces a few dominant builders to take over. Competition cannot survive in this framework because the system's own design favors the most centralized entities. It means the dream of a fully peer-to-peer financial system is being eaten by the very code meant to protect it.

Original Paper

Order Flow Exclusivity and Value Extraction Mechanisms: An Analysis of Ethereum Builder Centralization

Ao Zhang, Yunwen Liu, Ren Zhang, Yingdi Shan, Yongwei Wu

arXiv  ·  2605.04471

This study investigates the rapid centralization of the Ethereum builder market under the Proposer-Builder Separation (PBS) architecture. We argue that existing research, by focusing predominantly on influential order flows, lacks a comprehensive evaluation of order flow behavioral patterns and economic purposes. To address this gap, we analyze Ethereum transactions from September 2023 to August 2025 to characterize Exclusive Order Flows (EOFs) and non-atomic Maximal Extractable Value (MEV) -- t