Ethereum News: Vitalik Buterin Warns Many ETH Apps Still Rely on Web2

Key Insights:

• Ethereum news: Vitalik Buterin introduced the Walkaway Test in Chiang Mai. It assesses whether a dapp can run without developers, servers, or centralized logins.
• He warned that many dapps still use Web2-style servers and logins, which reduces real-world decentralization even on trust-minimized chains.
• Vitalik proposed ideas like FOCIL and transaction encryption to reduce builder censorship risk and curb toxic MEV, such as sandwich attacks.

ETH co-founder Vitalik Buterin has raised fresh concerns about how decentralized many Ethereum applications really are in recent Ethereum news. In a recent interview at the ETH Chiang Mai, he introduced what he called the “Walkaway Test.”

His latest comments also connect with a second issue inside Ethereum’s infrastructure. On March 2, Vitalik Buterin outlined a set of ideas to reduce block builder centralization.

He emphasized who decides which transactions enter a block. That decision can expose users to censorship and MEV-related abuse.

Ethereum News: Walkaway Test Targets Weak Points in ETH Apps

Vitalik Buterin introduced the Walkaway Test. It measures whether a decentralized application can survive without its creators or company-run systems.

Under that standard, users should still be able to access the application and complete key actions even if the original team is gone. If the product fails at that point, then part of its structure still depends on a central operator.

According to Ethereum news, many dapps still rely on infrastructure that resembles traditional internet services. A user may sign a transaction on-chain, yet still need a centralized website to interact with the app.

In other cases, login systems, data access, or routing services remain under the control of one company. That setup can create a single point of failure.

Vitalik Buterin Interview | Source: X

A large part of Buterin’s warning focused on the use of Web2-style architecture in Ethereum apps. Many products still depend on centralized logins, hosted dashboards, and backend systems.

Those tools may improve convenience. However, they also bring back trust assumptions that blockchains were built to reduce.

FOCIL Aims to Reduce Builder Censorship Risk

Vitalik Buterin linked app-level concerns with Ethereum’s stack block building. In Ethereum’s evolving structure, proposers may outsource block construction to external builders through proposer-builder separation.

That can create efficiency, but it can also concentrate power if only a small number of builders dominate the market.

To address that risk, Buterin discussed FOCIL, a proposal for in-protocol multi-participant block building. Under this model, 16 randomly selected attesters would each choose a few transactions that must be included in the next block.

If those transactions are left out, the block would be rejected. This system would stop a hostile builder from fully excluding selected users or transactions.

In the Ethereum news, Vitalik also described a more expansive idea known as “Big FOCIL.” In that version, the selected participants would include a much larger share of block transactions.

The builder’s role would become narrower, with more focus on MEV-relevant activity and state execution. The goal is to reduce the power of any one actor in the block building process.

Ethereum News: Encrypted Transactions Could Limit Toxic MEV

Vitalik Buterin also pointed to toxic MEV as a major issue in Ethereum’s transaction pipeline. This includes practices such as front-running and sandwich attacks.

There, traders exploit visibility into pending user transactions. These tactics can raise costs for users and distort execution, especially in DeFi markets.

One proposed response is encrypted mempools. Under that approach, a transaction would remain encrypted until it is included in a block.

That would make it harder for opportunistic actors to view and exploit transaction details before finalization. This Ethereum news could reduce the ability to wrap or manipulate user trades in a hostile way.

The post Ethereum News: Vitalik Buterin Warns Many ETH Apps Still Rely on Web2 appeared first on The Market Periodical.