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๐Ÿงฎ #MEV101: Who mines can also manipulate. In the world of blockchains, not everything is as neutral as it seems. MEV (Maximal Extractable Value) is the maximum value that a validator (or miner) can extract by manipulating the order of transactions. ๐Ÿ“Œ What is MEV? ๐Ÿ”น It is when validators reorganize, insert, or exclude transactions within a block ๐Ÿ”น Goal: to profit more, usually at the expense of other users ๐Ÿ”น Common in blockchains like Ethereum ๐Ÿ’ก Types of MEV: ๐Ÿ”ธ Front-running โ€“ Validator sees your transaction and inserts their own first ๐Ÿ”ธ Back-running โ€“ Enters right after a profitable transaction ๐Ÿ”ธ Sandwich attack โ€“ Buys before yours, sells after โ€” you pay the price โš ๏ธ Why does this matter? โŒ It can distort prices on DEXs โŒ Harms ordinary traders and investors โŒ Encourages centralization and unfair competition โœ… Solutions in development: ๐Ÿ”ธ Networks with proposer-builder separation (PBS) ๐Ÿ”ธ Private transactions (Flashbots) ๐Ÿ”ธ Better design of DEXs resistant to MEV โžก๏ธ MEV shows that even in decentralized systems, the power of those who build the block can make all the difference. #MEV101 #BlockchainProfundo #DeFiTransparente
๐Ÿงฎ #MEV101: Who mines can also manipulate.

In the world of blockchains, not everything is as neutral as it seems.
MEV (Maximal Extractable Value) is the maximum value that a validator (or miner) can extract by manipulating the order of transactions.

๐Ÿ“Œ What is MEV?
๐Ÿ”น It is when validators reorganize, insert, or exclude transactions within a block
๐Ÿ”น Goal: to profit more, usually at the expense of other users
๐Ÿ”น Common in blockchains like Ethereum

๐Ÿ’ก Types of MEV:
๐Ÿ”ธ Front-running โ€“ Validator sees your transaction and inserts their own first
๐Ÿ”ธ Back-running โ€“ Enters right after a profitable transaction
๐Ÿ”ธ Sandwich attack โ€“ Buys before yours, sells after โ€” you pay the price

โš ๏ธ Why does this matter?
โŒ It can distort prices on DEXs
โŒ Harms ordinary traders and investors
โŒ Encourages centralization and unfair competition

โœ… Solutions in development:
๐Ÿ”ธ Networks with proposer-builder separation (PBS)
๐Ÿ”ธ Private transactions (Flashbots)
๐Ÿ”ธ Better design of DEXs resistant to MEV

โžก๏ธ MEV shows that even in decentralized systems, the power of those who build the block can make all the difference.

#MEV101 #BlockchainProfundo #DeFiTransparente
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