The block building market describes the competitive environment where participants collect and order transactions into blocks for inclusion on a blockchain. This process is crucial for network operation, determining which transactions are processed and in what sequence. Entities involved, often called builders or proposers, compete to construct the most profitable blocks. Their actions directly influence transaction fees and network efficiency.
Context
Current discussions frequently address the increasing professionalization and potential centralization within the block building market. Concerns arise regarding the fairness of transaction ordering and the concentration of block production power among a few large entities. This trend is a key area of focus in news concerning blockchain decentralization and censorship resistance.
An economic model reveals that Proposer-Builder Separation, using Execution Tickets, concentrates MEV extraction among high-capital buyers, fundamentally challenging decentralization.
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