Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies

Why Only 3 Builders Control All of Ethereum


Listen Later

In this episode, host Friederike Ernst is joined by Kubi Mensah, CEO and co-founder of Gattaca, the company behind Titan Builder. Kubi sheds light on the highly competitive and often opaque world of Ethereum block building, explaining how Gattaca evolved from a centralized exchange proprietary trading firm to one of the three dominant builders responsible for constructing the vast majority of Ethereum blocks today .
 



 
They dissect the true "journey of a transaction," revealing why over half of all Ethereum transaction value bypasses the public mempool in favor of private order flow auctions and MEV-protection services . Kubi explains the intricate mechanics of top-of-block bidding by high-frequency DeFi arbitrageurs, the necessity of extreme latency optimization, and the "flywheel effect" that makes block building a natural oligopoly . Finally, the discussion turns to the future of the Ethereum roadmap, unpacking how upcoming upgrades like ePBS (enshrined Proposer-Builder Separation) and FOCIL (Fork-Choice Enforced Inclusion Lists) aim to permanently alter the power dynamics between block builders, validators, and originators .
 
 
Topics


  • 04:15 Transitioning from TradFi Trading to Ethereum Block Building
  • 09:30 Redefining the Builder: Relays and Order Flow Auctions
  • 15:00 Unpacking the Mempool: Public vs. Private Transactions
  • 21:45 The Anatomy of a Block & "Top-of-Block" Arbitrage
  • 27:10 How Builders Pay Proposers to Win Auctions
  • 35:20 The Oligopoly: Why Only 3 Builders Dominate Ethereum
  • 42:15 Trust in the Dark Forest: Handling Searcher Bundles
  • 49:00 The Convergence of Builders and Solvers
  • 55:30 The Impact of ePBS, FOCIL, and Pre-confirmations




Sponsors:



Lido V3 introduces stVaults: a modular staking infrastructure that lets builders and institutions deploy custom staking vaults, while staying anchored to stETH as a shared liquidity layer.Get started building with Lido V3 today: https://lido.fi/stvaults?mtm_campaign=epicenterBlock Space Forum: https://blockspace.forum/

...more
View all episodesView all episodes
Download on the App Store

Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed TechnologiesBy Epicenter Media Ltd.

  • 4.7
  • 4.7
  • 4.7
  • 4.7
  • 4.7

4.7

186 ratings


More shows like Epicenter - Learn about Crypto, Blockchain, Ethereum, Bitcoin and Distributed Technologies

View all
The Investor's Podcast (We Study Billionaires)  - The Investor’s Podcast Network by The Investor's Podcast Network

The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

3,347 Listeners

Macro Voices by Hedge Fund Manager Erik Townsend

Macro Voices

3,072 Listeners

The a16z Show by Andreessen Horowitz

The a16z Show

1,105 Listeners

Unchained by Laura Shin

Unchained

1,203 Listeners

Hidden Forces by Demetri Kofinas

Hidden Forces

1,448 Listeners

Real Vision: Finance & Investing by Real Vision Podcast Network

Real Vision: Finance & Investing

905 Listeners

CRYPTO 101 by Bryce Paul & Brendan Viehman

CRYPTO 101

36 Listeners

The Breakdown by Blockworks

The Breakdown

738 Listeners

The Pomp Podcast by Anthony Pompliano

The Pomp Podcast

1,833 Listeners

Thinking Crypto News & Interviews by Tony Edward

Thinking Crypto News & Interviews

249 Listeners

Bankless by Bankless

Bankless

1,046 Listeners

The Wolf Of All Streets by Scott Melker

The Wolf Of All Streets

242 Listeners

Coin Stories with Natalie Brunell by Natalie Brunell

Coin Stories with Natalie Brunell

446 Listeners

Raoul Pal: The Journey Man by Real Vision Podcast Network

Raoul Pal: The Journey Man

127 Listeners

Forward Guidance by Blockworks

Forward Guidance

273 Listeners