5 out of 6 top Ethereum block builders comply with OFAC sanctions. Most blocks follow OFAC rules after government's Tornado Cash sanctions.
Wahrstätter also highlighted that censorship resistance is crucial for maintaining political neutrality in blockchains. No single entity must have control over two-thirds of a blockchain’s content. Hence, decentralization is a fundamental principle; centralization at any stack layer can potentially harm the entire ecosystem.
The post also highlighted several promising solutions to address this issue. Inclusion lists can offer censoring entities deniability for including OFAC-sanctionedor compel them to exit the ecosystem if they still don’t comply. Encrypted Mempools involving encrypting transaction data while still unconfirmed can also be employed, rendering it impossible for censoring parties to target transactions based on their content.
Meanwhile, Titan Builder remains the last large block builder, still including OFAC-sanctioned transactions, particularly those associated with Tornado Cash, in their blocks.Following OFAC’s sanctions on Tornado Cash, there was significant debate regarding whether validators should include these transactions. Since then, the Ethereum community has been advocating for a reversal of censorship.
Meanwhile, according to a March report from MEV Watch, nearly one in three blocks added to the Ethereum blockchain within a week were deemed. That means around 30% of blocks did not include transactions subject to OFAC sanctions, particularly those involving Tornado Cash. Just a month before this, Ethereum validators still censored around 50% of blocks that made it onto the blockchain. The last time Ethereum experienced such low levels of censorship was on September 24, 2022.
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