Solver Network

Definition ∞ A solver network is a decentralized system composed of independent entities that compete to find optimal solutions for complex computational problems, often in decentralized finance. These solvers typically receive compensation for their contributions, such as executing arbitrage opportunities or liquidating undercollateralized positions. They enhance the efficiency and fairness of decentralized markets.
Context ∞ The discussion around solver networks in crypto often relates to their role in reducing miner extractable value (MEV) and improving transaction ordering on blockchains. A key debate involves ensuring fairness among solvers and preventing front-running. Future developments include more sophisticated algorithms for solution discovery and improved incentive structures to attract diverse participants.