Maximal extractable value (MEV) | ethereum.org thumbnail
Maximal extractable value (MEV) | ethereum.org
ethereum.org
However, since the transition to proof-of-stake via The Merge validators have been responsible for these roles, and mining is no longer part of the Ethereum protocol. The value extraction methods still exist, though, so the term "Maximal extractable value" is now used instead. In practice, however,
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  • However, since the transition to proof-of-stake via The Merge validators have been responsible for these roles, and mining is no longer part of the Ethereum protocol. The value extraction methods still exist, though, so the term "Maximal extractable value" is now used instead.
  • In practice, however, a large portion of MEV is extracted by independent network participants referred to as "searchers." Searchers run complex algorithms on blockchain data to detect profitable MEV opportunities and have bots to automatically submit those profitable transactions to the network.
  • With that, for some highly competitive MEV opportunities, such as DEX arbitrage, searchers may have to pay 90% or even more of their total MEV revenue in gas fees to the validator because so many people want to run the same profitable arbitrage trade
  • Validator centralization
  • The core benefit of the Builder API is its potential to democratize access to MEV opportunities. Using commit-reveal schemes eliminates trust assumptions and reduces entry barriers for validators seeking to benefit from MEV

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