Preventing miner extractable value exploitation. MEV elimination refers to strategies and protocol designs aimed at reducing or removing the ability of block producers to profit from reordering, censoring, or inserting transactions within a block. This practice, known as Miner Extractable Value (MEV), can lead to unfair advantages for certain network participants and degrade the user experience. Eliminating MEV seeks to ensure a more equitable and predictable transaction environment. It enhances the fairness and integrity of decentralized exchanges and other on-chain activities.
Context
MEV elimination is a prominent and active area of research and development in the blockchain space, particularly for networks with high transaction volume like Ethereum. Current discussions revolve around various technical solutions, such as proposer-builder separation (PBS), encrypted mempools, and fair sequencing protocols, each with its own trade-offs. Future advancements will likely lead to more robust and widely adopted MEV-resistant designs, contributing to a more level playing field for all users interacting with decentralized applications.
The new Proof-of-Encryption consensus, powered by Threshold Encryption, cryptographically eliminates MEV by keeping transactions private until finality.
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