Definition ∞ Transaction order fairness refers to the principle that transactions on a blockchain should be processed and ordered in a way that does not allow for undue advantage or manipulation. This concept addresses issues like Maximal Extractable Value (MEV), where block producers can reorder, censor, or insert transactions to profit at users’ expense. Ensuring fairness aims to prevent front-running and other forms of market exploitation. It promotes an equitable and transparent execution environment.
Context ∞ Achieving transaction order fairness is a significant challenge in proof-of-work and proof-of-stake blockchains, particularly in high-value decentralized finance applications. A key area of research involves developing protocols and mechanisms, such as proposer-builder separation, to mitigate MEV. The ongoing discussion focuses on designing systems that protect users from predatory practices and maintain the integrity of the transaction ordering process.
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