PBS mechanism design, or Proposer-Builder Separation mechanism design, refers to the architectural approach in blockchain protocols that separates the roles of proposing a new block and building its contents. A builder assembles transactions into an execution payload, optimizing for Maximal Extractable Value (MEV), while a proposer merely selects a block header from a builder. This separation aims to mitigate MEV centralization risks and improve network decentralization. It is a critical development for proof-of-stake systems.
Context
The implementation and refinement of PBS mechanism design are central to current efforts to enhance the decentralization and censorship resistance of prominent proof-of-stake blockchains, particularly Ethereum. News reports frequently detail the technical specifics, the economic implications for validators and builders, and the ongoing debates about its effectiveness in distributing power. This design choice is a key factor in the long-term health of these networks.
An economic model reveals that Proposer-Builder Separation, using Execution Tickets, concentrates MEV extraction among high-capital buyers, fundamentally challenging decentralization.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
