How Do Validators Profit from Using the Flashbots System?
Validators profit by receiving a direct payment, or "bribe," from the searchers who create the profitable transaction bundles. Instead of searchers competing in a public gas war, they bid privately within the Flashbots Auction for the right to have their bundle included in the next block.
The winning bid is paid directly to the validator as an additional fee on top of the standard block rewards and transaction fees, increasing the validator's overall profitability.
Glossar
Flashbots Auction
Protocol ⎊ The Flashbots Auction is a specialized transaction ordering protocol designed to mitigate the negative externalities of Miner Extractable Value (MEV) on the Ethereum blockchain, particularly front-running and generalized arbitrage.
Validators
Attestation ⎊ Validators, within cryptocurrency networks, represent nodes actively participating in a consensus mechanism, verifying and attesting to the validity of new blocks or transactions.
Flashbots
Architecture ⎊ Flashbots represents a pioneering effort in protocol-level organization, initially focused on mitigating Miner Extractable Value (MEV) within the Ethereum ecosystem, and now expanding its scope to broader blockchain infrastructure.