Latency asymmetries describe differences in the time it takes for information to travel between various participants or nodes within a decentralized network. These discrepancies can arise from geographical distances, network infrastructure variations, or specific routing paths. Such asymmetries can grant certain participants a temporal advantage in transaction ordering or information processing.
Context
Latency asymmetries are a critical concern in high-frequency trading and MEV (Maximal Extractable Value) discussions within blockchain ecosystems. News often highlights how these timing differences can lead to front-running or other exploitative practices, impacting market fairness. Protocol designers constantly seek methods to mitigate these disparities and ensure a more equitable transaction environment.
Game theory proves private orderflow and latency asymmetries drive MEV-Boost to an oligopoly equilibrium, requiring new trustless orderflow mechanisms.
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