Does the ‘Solana’ Blockchain’s Architecture Inherently Reduce MEV Risk?
Solana's architecture, particularly its fast block time and unique 'Gulf Stream' and 'Sealevel' mechanisms, makes traditional Ethereum-style MEV (like sandwich attacks via public mempool) harder due to the speed and concurrent transaction processing. However, a new form of MEV, often related to validator control over the leader schedule and transaction execution order within a block, still exists and is actively exploited.
Glossar
Fast Block Time
Throughput ⎊ Fast block time is a core characteristic of certain high-performance blockchain architectures, representing the minimal interval required for a network to finalize a new block of transactions and propagate it across the distributed ledger.
Solana
Throughput ⎊ Solana is a high-performance blockchain platform distinguished by its high transaction throughput and low latency, making it highly suitable for decentralized finance applications.
Solana MEV
Microstructure ⎊ Solana MEV operates within a distinct market microstructure characterized by extremely high transaction throughput and a unique block production process that differs significantly from Ethereum's mempool model.
Sandwich Attacks
Execution ⎊ Sandwich attacks, within cryptocurrency derivatives and options trading, represent a sophisticated market manipulation tactic exploiting order book dynamics.
Architecture
Framework ⎊ Architecture within cryptocurrency, options trading, and financial derivatives represents the underlying computational and governance structures enabling decentralized finance (DeFi) protocols and the issuance, trading, and settlement of derivative contracts.