Formalizing MEV: A Foundational Theory for Blockchain Security ∞ Research

A reflective, metallic tunnel frames a desolate, grey landscape under a clear sky. In the center, a large, textured boulder with a central circular aperture is visible, with a smaller, textured sphere floating in the upper right

A detailed perspective showcases a futuristic technological apparatus, characterized by its transparent, textured blue components that appear to be either frozen liquid or a specialized cooling medium, intertwined with dark metallic structures. Bright blue light emanates from within and along the metallic edges, highlighting the intricate design and suggesting internal activity

Briefing

This paper addresses the insufficiently established theoretical foundations of Maximal Extractable Value (MEV), a pervasive class of economic attacks impacting public blockchains. It proposes a formal theory of MEV, grounded in a general, abstract model of blockchains and smart contracts. This foundational breakthrough provides a rigorous basis for developing proofs of security against MEV attacks, significantly advancing the understanding and resilience of future blockchain architectures.

The image displays an intricate, ring-shaped arrangement of interconnected digital modules. These white and gray block-like components feature glowing blue sections, suggesting active data transfer within a complex system

Context

Before this research, Maximal Extractable Value (MEV) represented a critical, yet theoretically underexplored, vulnerability within public blockchains. Adversaries, capable of reordering, dropping, or inserting transactions, could extract substantial value from smart contracts, leading to detrimental effects on users and network integrity. Existing empirical observations highlighted the scale of the problem, but a comprehensive, formal theoretical framework to systematically analyze and counter these attacks was absent.

The image showcases a high-tech device, featuring a prominent, faceted blue gem-like component embedded within a brushed metallic and transparent casing. A slender metallic rod runs alongside, emphasizing precision engineering and sleek design

Analysis

The core idea introduces a formal theory of MEV, conceptualized within an abstract model of blockchains and smart contracts. This framework precisely defines MEV as value extracted by adversaries through transaction manipulation, such as reordering or insertion. It fundamentally differs from previous approaches by providing a mathematical and logical foundation for MEV, enabling the formal derivation of security properties and the systematic analysis of adversarial behaviors. The model serves as a universal language for discussing and proving MEV resistance in various protocol designs.

A central mass of deep blue, textured material is partially covered and intermingled with a lighter, almost white, powdery substance. This formation is cradled within a polished, metallic structure composed of parallel bars and supports

Parameters

Core Concept ∞ Maximal Extractable Value (MEV) Formalization
New Model ∞ Abstract Blockchain and Smart Contract Model
Key Authors ∞ Bartoletti, M. and Zunino, R.
Publication Venue ∞ arXiv
Revision Date ∞ May 25, 2025
Primary Application ∞ MEV Attack Security Proofs

The image showcases a detailed close-up of a precision-engineered mechanical component, featuring a central metallic shaft surrounded by multiple concentric rings and blue structural elements. The intricate design highlights advanced manufacturing and material science, with brushed metal textures and dark inner mechanisms

Outlook

This foundational theory opens new avenues for rigorous analysis and design in blockchain security. Future research can leverage this formal model to develop provably secure protocols and mechanism designs that inherently mitigate MEV. Real-world applications could include the creation of MEV-resistant decentralized finance (DeFi) protocols and more robust transaction ordering mechanisms, ultimately fostering a fairer and more predictable on-chain environment for users.

The image features dynamic, translucent blue and white fluid-like forms, with a prominent textured white mass on the left and a soft, out-of-focus white sphere floating above. Smaller, clear droplet-like elements are visible on the far right

Verdict

This research provides an indispensable theoretical bedrock for understanding and ultimately mitigating the systemic economic vulnerabilities introduced by Maximal Extractable Value in blockchain systems.

Signal Acquired from ∞ arXiv.org