What is the Context of Blockspace Efficiency?

Discussions around blockspace efficiency are prominent in the context of layer-2 scaling solutions and protocol upgrades aimed at alleviating network congestion. Innovations in data compression, transaction batching, and more compact data structures are actively pursued to make better use of finite block resources.

Blockspace Efficiency

Definition

Blockspace efficiency refers to the optimization of data storage and transaction processing within individual blocks on a blockchain. It involves maximizing the utility of limited block capacity by employing techniques that reduce redundancy and increase the information density of transactions. Achieving high blockspace efficiency is crucial for enhancing network scalability and lowering transaction costs.

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∞MEV Auctions

∞Network Congestion

∞Blockspace Efficiency

MEV Spam Limits Blockchain Scaling, New Auction Mechanism Proposed

This research fundamentally redefines blockchain scalability, revealing Maximal Extractable Value (MEV) spam as the dominant economic constraint, demanding new programmable privacy and explicit bidding mechanisms.

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∞Economic Limits

∞Arbitrage Bots

∞Explicit Bidding

MEV Spam Severely Limits Blockchain Scaling, Demands New Auction Design.

Maximal Extractable Value (MEV) spam significantly hinders blockchain scalability, necessitating programmable privacy and explicit bidding for efficient blockspace utilization.

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∞Programmable Privacy

∞Blockchain Scaling

∞Auction Mechanisms

MEV Is the Economic Limit to Blockchain Scaling

This research establishes Maximal Extractable Value as the primary economic bottleneck for blockchain scalability, proposing a novel auction design for efficient blockspace utilization.