Uncommon Core 2.0

An Incomplete Guide to PBS - with Mike Neuder and Chris Hager

Sep 2, 2023

01:58:41

Snipd AI

Mike Neuder from Ethereum Foundation and Chris Hager from Flashbots join to discuss the design philosophy of proposer-builder separation (PBS) and its implementations on Ethereum. They talk about MEV-Geth and MEV-Boost, the benefits of PBS, censorship prevention, enshrined PBS, PBS on L2, PEPC, and the trade-off between decentralization and usefulness.

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Quick takeaways

Proposer Builder Separation (PBS) is a design philosophy that enables efficient scaling and decentralization in blockchain protocols.

MEV Boost is the current implementation of PBS on Ethereum, involving a relay market that facilitates auctions between proposers and builders.

The concentration of power among a few relays in the MEV Boost ecosystem poses security risks and decentralization concerns.

Enshrining PBS on Ethereum aims to eliminate the reliance on external parties by facilitating proposer-builder auctions within the protocol.

Pepsi, an extension of PBS, allows for broader commitments and provides more flexibility and options for proposers.

Deep dives

Overview of PBS

PBS, or Proposer Builder Separation, is a design philosophy that recognizes the need for protocol actors to outsource certain tasks to third parties outside the protocol. In Ethereum, it involves separating the responsibility of proposing blocks and building optimized blocks. This separation allows for more efficient scaling and helps maintain decentralization by enabling unsophisticated proposers and specialized block builders. The implementation of PBS, known as MEV Boost, currently relies on a relay market that facilitates auctions between proposers and builders. This system provides economic incentives for builders to produce optimized blocks, which increases the overall value extracted from the blockchain. However, the current state of the MEV Boost ecosystem has some risks, such as centralization of relays and potential vulnerabilities. The future of PBS on Ethereum aims to evolve towards an in-protocol solution to further enhance trustlessness and decentralization.

Introduction

4min

The Future of Designs in the Blockchain World

15min

Features, Benefits, and Regulatory Considerations of PBS

3min

The Trade-offs and Challenges of OFAC Compliance and Censorship

29min

Optimistic Relaying and its Purpose

20min

Discussion on PBS and the Ideas of Pepsi Boost and Mev Boost Plus

3min

Exploring Commitments and Protocol Design in Ethereum

26min

The Challenge of Monetizing Relays and the Need for Funding

2min

Open Governance and Standardization in Layer Twos

8min

10.

Censorship and Agency in Proposal Tools

9min

Hasu and Jon bring on Mike Neuder (Ethereum Foundation) and Chris Hager (Flashbots) to discuss the design philosophy of proposer-builder separation (PBS). They first dive into the past and present implementations of PBS, including MEV-Geth and MEV-Boost on Ethereum. Then they discuss the future of PBS - whether PBS should be enshrined, protocol-enforced proposer commitments (PEPC), PBS on L2s, how to prevent censorship, and more.

Timestamps:

(00:00) Intro

(01:12) What is PBS?

(05:37) The History of PBS

(08:43) MEV-Boost

(10:18) Block Production in Proof-of-Work

(11:31) Benefits of PBS

(14:17) PBS Makes Based Rollups Viable

(16:21) PEPC & Proposer Complexity

(17:46) Other Builder Services

(19:49) PBS & Regulation

(22:48) Regulation & Encrypted Mempools

(24:38) Division of Labor is Inevitable

(26:15) Risks of PBS

(29:03) Development of COre Protocol Software

(33:31) PEPC, POB, & Alternatives to PBS

(41:53) Decentralization vs. Usefulness Tradeoff

(46:30) State of PBS in MEV-Boost

(50:51) Optimistic Relays

(52:09) Enshrined PBS (ePBS)

(55:55) PBS on L2

(58:47) PEPC

(01:05:25) Proposer Commitments & User Intents

(01:09:03) Concluding Remarks

(01:11:05) Recap

(01:12:06) PEPC, PEPC-Boost, & MEV-Boost+

(01:18:44) PBS From First Principles

(01:21:41) PBS is a Philosophy, Not an Implementation

(01:25:44) To Enshrine, Or Not to Enshrine?

(01:35:12) In-protocol vs. Out-of-protocol Development & Funding

(01:50:16) Censorship & Proposer Agency

(01:58:15) Outro & Disclaimer

Hasu - https://twitter.com/hasufl

Jon Charbonneau - https://twitter.com/jon_charb

Uncommon Core 2.0 - https://twitter.com/UCC2_xyz

Mike Neuder - https://twitter.com/mikeneuder

Chris Hager - https://twitter.com/metachris

Relays in a post-ePBS world - https://ethresear.ch/t/relays-in-a-post-epbs-world/16278

No free lunch – a new inclusion list design - https://ethresear.ch/t/no-free-lunch-a-new-inclusion-list-design/16389

Payload-timeliness committee (PTC) – an ePBS design - https://ethresear.ch/t/payload-timeliness-committee-ptc-an-epbs-design/16054

Notes on Proposer-Builder Separation (PBS) - https://barnabe.substack.com/p/pbs

PEPC FAQ - https://efdn.notion.site/PEPC-FAQ-0787ba2f77e14efba771ff2d903d67e4#41230925420345af84f31b50d806b8ed

PEPC Open Problems - https://docs.google.com/presentation/d/12kpwAXbZqUA0fu2HnZKSesVwO31ICbgIiacHd0EQ_fk/edit#slide=id.g2401d3821ec_1_0

PBS Guild Proposal [v3 WIP] - https://collective.flashbots.net/t/pbs-guild-proposal-v3-wip/2223

MEV-Boost+/++ - https://www.blog.eigenlayer.xyz/censorship-resistance-with-restaking/

Disclaimer: The material and information presented in this podcast is for general informational purposes only and should not be considered investment advice. The views, thoughts, and opinions expressed in this podcast are solely those of the speakers and are not the views of any entity or other person with whom the speaker is affiliated, including, without limitation, DBA Crypto, LLC. The “DBA Crypto” name and all forms thereof are the sole property of its owner, and its use does not imply endorsement of or opposition to any specific organization, product, or service.

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Uncommon Core 2.0

An Incomplete Guide to PBS - with Mike Neuder and Chris Hager

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Overview of PBS

History of PBS on Ethereum

Current State of the MEV Boost Ecosystem

The Path to Enshrine PBS on Ethereum

EPBS Evolution: Changes and Enforcement Mechanisms

Decentralizing Sequence on Layer 2 with PBS

Pepsi: Generalizing Proposal Commitments

The evolution of design philosophy

The broad design philosophy of PBS

Get the Snipd
podcast app

AI-powered
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highlights

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Uncommon Core 2.0

An Incomplete Guide to PBS - with Mike Neuder and Chris Hager

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Overview of PBS

History of PBS on Ethereum

Current State of the MEV Boost Ecosystem

The Path to Enshrine PBS on Ethereum

EPBS Evolution: Changes and Enforcement Mechanisms

Decentralizing Sequence on Layer 2 with PBS

Pepsi: Generalizing Proposal Commitments

The evolution of design philosophy

The broad design philosophy of PBS

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