Definition ∞ Exclusive orderflow refers to a situation where a specific entity, such as a block builder or market maker, receives a stream of transaction orders before other market participants. This privileged access allows the entity to process or include these orders with priority. It can grant a significant informational or execution advantage.
Context ∞ The concept of exclusive orderflow is highly contentious in blockchain ecosystems, particularly concerning Maximal Extractable Value (MEV) extraction. Critics argue it leads to market unfairness and centralization, as only a few participants benefit from early access. Solutions like encrypted mempools or orderflow auctions are being explored to democratize access and reduce its negative impacts.
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