On October 14, Ethereum [ETH] blockchain saw an unprecedented increase in censorship as more than 50% of blocks were generated the previous day. These blocks are under review by the US Treasury Department’s Office of Foreign Assets Control (OFAC) for compliance recommendations.
In August 2022, OFAC recommended and urged Americans to abstain from using Tornado Cash and the cryptocurrency ecosystem. However, after the Merge, the emergence of MEV Boost led to the proliferation of OFAC compliant blocks.
Development meant that more than half of the blocks developed during this period were powered by relays. These relays can be considered as those that have stopped supporting transactions via Tornado Cash. Furthermore, this relay or engine is an open source, unattended, fully decentralized relay that runs on networks compatible with the Ethereum Virtual Machine.
So far, most of the various relays have not enforced the ban when Flashbots has banned transactions on sanctioned blocks. However, as more and more relays start to implement OFAC rule, it can cause trouble for sanctioned transactions. These represent these on the Ethereum blockchain, to make it the Ethereum blockchain.
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