Bottleneck in block production concentration: Ethereum faces censorship issues due to concentration in block production. Currently, two large groups control 95% of the blocks, raising concerns about potential censorship through maximum extractable value (MEV) strategies. This concentration undermines the network’s decentralization and affects its inclusivity.

EIP 7805 solution for Ethereum: Ethereum plans to implement EIP 7805, introducing a protected exclusion list (FOCIL) to boost censorship resistance. This mechanism allows for the creation of 16 validators overseeing transactions in the upcoming block. This aims to decrease block planners’ power.

Impact and broader vision: Although EIP 7805 can’t completely resolve the issue, it’s a vital step in Ethereum’s new vision, proposed by Justin Drake. This plan includes significant improvements to technical structure and transaction processes. Despite challenges, the Ethereum community is striving to enhance the technology’s resilience.

Challenges in the crypto market: Ethereum struggles to compete with Bitcoin. ETH/BTC performance fell to its lowest since 2021, pressuring its capability to maintain momentum. This signifies Ethereum needs technical upgrades to retain market position.