Flashbots, the research and development organization that has fundamentally reshaped Ethereum’s transaction supply chain, launched BuilderNet in November 2024 — a decentralized block building network designed to combat the growing centralization of Ethereum’s block construction process. The initiative, jointly operated by Flashbots, block builder Beaverbuild, and Ethereum client provider Nethermind, represents a significant step toward a more resilient and censorship-resistant blockchain infrastructure.
The Agentic Protocol
BuilderNet operates as a collaborative, permissionless network where multiple block builders can participate in constructing Ethereum blocks without any single entity dominating the process. At its core, the protocol introduces a framework where block building responsibilities are distributed across independent operators, each running their own building infrastructure while sharing access to orderflow — the stream of pending transactions and bundles seeking inclusion in blocks.
The first release of BuilderNet is jointly operated by its three founding partners, but the architecture is designed for progressive decentralization. Additional builders can join the network over time, creating a competitive and diverse block construction ecosystem. The system employs TEE (Trusted Execution Environment) searching capabilities and programmable privacy features inherited from Flashbots’ earlier MEV-Share work, enabling sophisticated transaction processing without compromising user confidentiality.
Neural Network Integration
While BuilderNet is primarily an infrastructure play, its architecture has significant implications for AI-driven trading and optimization systems. Modern block building increasingly relies on algorithmic decision-making — determining optimal transaction ordering, identifying arbitrage opportunities, and managing risk across complex multi-transaction bundles. The decentralized nature of BuilderNet means that AI-powered searchers and builders can participate on equal footing, rather than being locked out by exclusive orderflow arrangements that favor established players.
The network’s open architecture enables machine learning models to compete directly in block building, creating a natural selection environment where the most efficient algorithms thrive. This mirrors broader trends in the AI-crypto space where, as the recent OKX Ventures and Polychain Capital report noted, distributed computing platforms like io.net are creating new paradigms for shared computational resources. At the time of BuilderNet’s launch, Ethereum traded at approximately $3,579, reflecting robust network activity that makes efficient block building increasingly valuable.
Token Utility
Although BuilderNet does not currently feature a native token, its economic model is built on transparent fee distribution and refund mechanisms. Block builders earn revenue from the value they extract through efficient transaction ordering, while orderflow providers — the wallets and applications that submit user transactions — receive refunds calculated based on the value their transactions contributed to the block. This creates a virtuous cycle where both builders and providers are incentivized to participate honestly and efficiently.
The refund system is governed by an open-source refund rule, ensuring transparency and fairness in how value is distributed. This approach stands in contrast to the opaque deal-making that has characterized much of Ethereum’s block building ecosystem, where exclusive arrangements between builders and orderflow providers have raised concerns about market manipulation and censorship.
Potential Bottlenecks
BuilderNet faces several challenges as it scales. The transition from a small number of established builders to a truly open, permissionless network requires careful attention to performance and reliability — Ethereum’s block builders must produce blocks within strict time constraints, and new entrants may struggle to match the latency of incumbents. Additionally, while the protocol aims to neutralize exclusive orderflow deals, entrenched relationships between builders and major wallets may prove difficult to unwind.
The system also plans to extend beyond Ethereum’s Layer 1 to support decentralized sequencing on Layer 2 networks through Rollup-Boost, the block building platform slated for use on Unichain. This expansion adds complexity but also significantly increases the potential impact of the network. The challenge will be maintaining the same level of performance and security guarantees across multiple chains with different consensus mechanisms and operational requirements.
Final Verdict
BuilderNet represents one of the most important infrastructure developments in Ethereum’s post-Merge era. By addressing the centralization of block building — a concern that has grown as a small number of builders came to dominate block production — Flashbots and its partners are laying the groundwork for a more resilient and democratic blockchain ecosystem. With Bitcoin at $95,652 and the broader crypto market capitalization exceeding $3.4 trillion, the stakes for maintaining credible decentralization have never been higher. BuilderNet is not just a technical upgrade — it is a statement of values about what Ethereum should be.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before making any financial decisions.
shared orderflow is the real innovation. if a small builder can access the same tx pool as beaverbuild without building their own relay infra that actually levels the field
progressive decentralization in block building is the same story as L2 sequencers. promise openness, deliver a cartel with better PR
slot_bidder_ nailed it. progressive decentralization starting with the three biggest players is just a cartel with better branding
beaverbuild running like 40% of blocks and now they are one of three founding partners. decentralizing block building by… giving the biggest builder a seat at the table?
beaverbuild running 40% of blocks and getting a founding seat is exactly the kind of centralization builderNet claims to solve
progressive decentralization is the crypto way of saying we will open it up once the incumbents are entrenched. hope flashbots proves me wrong
progressive decentralization is the crypto industry’s favorite way of saying we will share power once we dont need them anymore
shared orderflow access is the actual innovation here. if smaller builders can compete on equal footing with beaverbuild that changes the game
Flashbots shipping real infrastructure while most of the industry argues on Twitter. MEV supply chain needs this.
shared orderflow only matters if the economics work for smaller builders. beaverbuild has a massive infra advantage that shared data wont erase
beaverbuild running 40% of blocks and getting a founding seat in a decentralization project. the irony is apparently lost on flashbots
block_spy_ three founding partners and one of them controls 40% of blocks. call me when the actual builder set diversifies below 20% market share per entity
Niko V. 40% block share and a founding seat is just regulatory capture with extra steps. the decentralization metrics are worse than before BuilderNet launched
Niko V. three founding partners and beaverbuild already controls 40% of blocks. calling it decentralized block building when one entity dominates is some next level crypto doublespeak
shared orderflow is the real unlock. if a builder running on a laptop can access the same mempool data as beaverbuild that actually changes who gets to participate
MEV extraction costs regular users billions in aggregate. anything that makes the supply chain more transparent is a net positive even if rollout is imperfect
shared orderflow sounds great until you realize beaverbuild has custom FPGA infrastructure optimized for block construction. equal data access doesnt mean equal hardware
Henrik W. FPGA point is spot on. shared orderflow levels the data playing field but beaverbuild still wins on execution speed. you cant decentralize hardware advantage
relay_insider_ FPGA advantage is real but shared orderflow at least removes the information asymmetry. small builders can compete on strategy even if they lose on raw speed
Henrik W. is right about FPGA. shared orderflow means equal data access but beaverbuild still wins on execution. you cant decentralize hardware superiority with a protocol change
beaverbuild controlling 40% of blocks AND getting a founding BuilderNet seat. calling that decentralized is like calling OPEC a free market
relay_cut_ 40% market share plus a governance seat is textbook regulatory capture. progressive decentralization is just slower centralization
slot_auction_ calling it regulatory capture is spot on. beaverbuild has the FPGA edge, the market share, AND a governance seat. progressive decentralization is just slower monopoly
shared orderflow helps small builders see the same mempool data but custom FPGA rigs still win on speed. equal data doesnt mean equal hardware
Pradeep N. shared orderflow helping small builders see the same data is nice in theory. but if beaverbuild processes it 50ms faster on custom silicon the data advantage is moot