Transaction Sequencing Game

Definition ∞ A Transaction Sequencing Game describes the strategic interactions among network participants, such as validators or miners, regarding the order in which transactions are processed and included in a block. Participants may compete to prioritize certain transactions, especially those offering higher fees, leading to potential issues like front-running or censorship. This game-theoretic aspect significantly impacts transaction fairness and network efficiency. It is a critical area of study in blockchain economics.
Context ∞ News in the decentralized finance space frequently covers the Transaction Sequencing Game, particularly in discussions about Maximal Extractable Value, where participants optimize transaction order for profit. These dynamics can affect the integrity of financial applications and user experience on blockchain networks. Ongoing protocol improvements aim to mitigate negative consequences and promote a more equitable sequencing process.