Strategic miner behavior refers to the actions taken by cryptocurrency miners to maximize their profits or influence network operations beyond simply validating transactions. This can include practices such as miner extractable value (MEV), where miners reorder, censor, or insert transactions within a block to gain financial advantage from arbitrage or liquidations. It also encompasses decisions regarding block withholding, selfish mining, or choosing which transactions to include based on fee optimization. Such behavior can affect network fairness, transaction costs, and decentralization.
Context
The discussion surrounding strategic miner behavior is a significant concern for the integrity and efficiency of proof-of-work and, increasingly, proof-of-stake blockchain networks. A key debate involves developing protocol upgrades and mechanism designs to mitigate the negative impacts of MEV and other strategic actions. Critical future developments include the implementation of solutions like proposer-builder separation (PBS) to reduce miner influence over transaction ordering.
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