Definition ∞ MEV Capture refers to the practice of extracting profit from Miner Extractable Value within a blockchain network. This involves strategically ordering, inserting, or censoring transactions to exploit price discrepancies or network inefficiencies. It is a complex strategy often executed by sophisticated actors like arbitrageurs and liquidators.
Context ∞ MEV Capture is a subject of considerable debate within the blockchain community, particularly concerning its impact on network fairness and transaction costs. Current research is focused on developing mechanisms to mitigate negative externalities of MEV, such as proposer-builder separation and fair ordering protocols. Future developments are anticipated to involve more transparent and potentially decentralized approaches to MEV management.
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