Does a Fixed Block Time or a Variable Block Time Make MEV More Predictable?
A fixed block time (or a highly predictable one) makes MEV more predictable. It provides a reliable cadence for block production, allowing MEV searchers to more accurately time their transactions and calculate the expected profit.
A variable block time introduces uncertainty, making the timing of block finality less reliable and thus making the execution of precise, time-sensitive MEV strategies more challenging and less predictable for the attacker.
Glossar
Block Time
Epoch ⎊ Within cryptocurrency and decentralized finance, epoch refers to a discrete time interval during which specific operations or consensus mechanisms are executed.
Variable Block Time
Variability ⎊ Variable block time describes the non-deterministic interval between the discovery and validation of successive blocks on a blockchain, a characteristic predominantly found in Proof-of-Work systems.
Block Time Impact
Momentum ⎊ Within cryptocurrency derivatives and options trading, momentum reflects the temporal correlation between block time and price discovery, particularly relevant for assets exhibiting high volatility or concentrated ownership.
Block
Genesis ⎊ A block, within cryptocurrency networks, represents a foundational unit of data containing a set of transactions, cryptographically linked to the preceding block, establishing an immutable and chronological record.
Fixed Block Time
Predictability ⎊ A Fixed Block Time refers to a blockchain protocol design where the interval between the creation of successive blocks is set to a constant, deterministic duration, removing the variability inherent in probabilistic consensus mechanisms.