Two Ways Block Builders Can Add Value and Improve User Experience
Beyond MEV: exploring the untapped potential for block builders to create new economic models and enhance the blockspace.
by Juan Aranovich and Thomas Tang
Introduction
The future of Ethereum lies in the hands of block builders who have the potential to transform the blockspace marketplace. Currently, block builders are focused on extracting MEV, but there are other opportunities in the blockbuilding space.
1- Bundling Services
One area where block builders can focus is by bundling their services with products or applications to support new features. For example, by innovating around gas, block builders can create new economic models and improve the user experience by offering fixed gas fees or aligning transaction costs with the economic model of the app. Block builders can also provide conditional transaction execution by allowing transactions with custom logic supported by builders, such as liquidation protection or limit orders. Additionally, block builders can provide security and runtime monitoring by simulating transactions with expected outcomes to prevent malicious actions.
2- Abstracting Complexity
Another area where block builders can provide value is by abstracting the complexity of optimizing blockspace. This can be achieved by offering seamless cross-chain infrastructure for new cross-chain transaction types or pooled liquidity, or by providing data blob management for roll-ups. Block builders can also provide block level customizations of ETH burning and MEV smoothing within blocks across builders. Moreover, Danksharding tasks such as data availability sampling or block propagation can be outsourced to stakeholders like block builders who are well positioned to handle the increased technical requirements.
Block builders have a significant role to play in the future of Ethereum. By bundling their services with products or applications and abstracting the complexity of optimizing blockspace, block builders can transform the blockspace marketplace and create new economic models that improve the user experience.