Block Builder Strategy describes the methods and decisions block builders employ to select, order, and package transactions into new blocks on a blockchain. This process directly impacts which transactions are included and their sequence within a block. These strategies aim to maximize rewards while adhering to network rules.
Context
This term is central to discussions around Maximum Extractable Value (MEV) in proof-of-stake blockchains, particularly Ethereum. News often reports on block builder actions that can influence transaction costs and fairness for users. The competition among builders and their strategic choices significantly affect network efficiency and the distribution of value within the ecosystem.
A new cryptographic auction model with miner-set reserves establishes 'Off-Chain Influence Proofness,' mitigating hidden MEV and redefining transaction fee mechanism design.
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