Cross-Chain MEV

Definition ∞ Cross-Chain MEV, or Miner Extractable Value, refers to the profit opportunities validators or block producers can gain by ordering, censoring, or inserting transactions across multiple blockchain networks. This practice involves identifying and executing profitable arbitrage, liquidation, or sandwich attack strategies that span different chains. It extends the concept of MEV beyond a single blockchain, adding complexity to transaction ordering dynamics. Maximizing this value often requires sophisticated algorithms and rapid execution.
Context ∞ The emergence of cross-chain MEV presents a complex challenge for fair transaction ordering and network neutrality across the interconnected blockchain ecosystem. Debates center on whether this activity contributes to market efficiency or exacerbates information asymmetry and front-running. Solutions involving shared sequencers and decentralized transaction ordering protocols are under investigation to mitigate its potentially adverse effects. Regulatory bodies may eventually consider the market impact of such advanced trading strategies.