A Searcher Builder Strategy describes the operational approach adopted by participants in the maximal extractable value ecosystem, specifically distinguishing between “searchers” who identify profitable transaction ordering opportunities and “builders” who construct blocks to capture these opportunities. This strategy often involves specialized algorithms and infrastructure to detect and execute arbitrage, liquidations, or sandwich attacks. The interaction between searchers and builders forms a competitive market for block space and transaction inclusion. It represents a key dynamic in blockchain transaction processing.
Context
The evolution of the Searcher Builder Strategy is a central topic in discussions about blockchain efficiency, fairness, and the distribution of value within proof-of-stake networks. Innovations like proposer-builder separation aim to decentralize this process and reduce the advantages of vertically integrated entities. News reports frequently analyze the impact of these strategies on network congestion, transaction costs, and the overall economic landscape of digital assets.
A novel agent-based simulation models the two-sided PBS market, revealing a dynamic equilibrium between builders and searchers based on transaction conflict probability.
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