Block builder latency refers to the time delay between a block builder receiving transactions and including them in a proposed block for a validator. This delay impacts the speed at which transactions are confirmed on a blockchain network. Minimizing latency is crucial for maintaining transaction throughput and reducing opportunities for certain forms of value extraction.
Context
In proof-of-stake blockchains, particularly Ethereum post-Merge, block builder latency is a central topic in the context of Maximal Extractable Value (MEV) and block production fairness. Excessive latency can disadvantage honest participants and concentrate power among those with superior infrastructure. Efforts to reduce this delay involve advancements in network architecture and builder-validator communication protocols.
A game-theoretic model formalizes MEV-Boost auctions, demonstrating how latency and strategic bidding, not maximal value, drive block selection, quantifying auction inefficiency.
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