Proposer manipulation involves an entity unfairly influencing the selection or ordering of transactions within a blockchain block. This activity, particularly relevant in Proof-of-Stake systems, occurs when a block proposer exploits their temporary control over block construction to gain an unfair advantage, such as front-running trades or censoring transactions. It represents a form of Maximal Extractable Value (MEV) extraction that can compromise network fairness and decentralization. Such manipulation undermines the integrity of transaction ordering and user trust.
Context
Proposer manipulation is a significant concern in the evolving landscape of Proof-of-Stake blockchains, with ongoing research and development focused on mitigating its effects. Debates often involve proposals for MEV-resistant designs, such as decentralized block building and threshold encryption, to ensure fair transaction inclusion. News frequently covers new protocols and strategies aimed at reducing the opportunities for proposers to extract undue value.
The Verifiable Delay Function is a cryptographic time-lock, enforcing a mandatory sequential computation to generate unbiasable randomness, thereby securing consensus leader election.
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