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Blockchain

Why does exclusive order flow let two builders dominate 86% of Ethereum block production?

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Opportunity

Private order flow agreements between wallets, apps, and a small number of builders give those builders a structural informational advantage that compounds over time. Beaverbuild and Titan Builder produced roughly 86% of Ethereum mainnet blocks during a two-week period in early 2025, and the Herfindahl-Hirschman Index for block building rose from around 0.2 in late 2023 to 0.35 by mid-2024. ePBS moves the builder-proposer auction on-chain but does not break the exclusive deal pipeline: a builder holding the majority of private flow still wins most auctions after the protocol change. BuilderNet is a voluntary countermeasure without on-chain enforcement, and as of January 2026 it produced only 25.5% of blocks. The feedback loop is self-reinforcing: only builders with high market share attract exclusive flow, and only those with exclusive flow consistently win.

Why it matters

A two-builder effective monopoly at L1 means those two entities can reorder or delay any transaction on the chain, regardless of what the consensus protocol says.

How I score the opportunity

The Opportunity Score is my own read, not a measurement: how much it hurts, how often it bites, and how little exists to solve it today. Higher means I think it is more worth building.

Severity9/10

How much pain it causes when it shows up.

Frequency9/10

How often people actually run into it.

Whitespace7/10

How little good tooling exists for it today.

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