Block Building Microstructure

Definition ∞ Block building microstructure refers to the internal processes and incentives involved in creating new blocks on a blockchain. This includes the selection, ordering, and inclusion of transactions by validators or miners, which significantly impacts transaction costs, confirmation times, and the distribution of value within the network. It encompasses the various participants and their strategic interactions during the block creation phase.
Context ∞ Discussions around block building microstructure are central to understanding topics like Miner Extractable Value (MEV) and transaction censorship in decentralized systems. Ongoing research and protocol upgrades frequently target improvements to this microstructure to enhance network fairness, efficiency, and resistance to manipulative practices. Changes in this area directly affect user experience and network security, making it a frequent subject in blockchain development news.