How Does a Block Builder Prevent Self-Front-Running?

A block builder prevents self-front-running by adhering to strict internal rules and, in some systems, by using Proposer-Builder Separation (PBS). In a PBS model, the block builder focuses solely on constructing the most profitable block and is separated from the validator who proposes it.

The builder is incentivized to include the highest-paying transaction bundles, regardless of who submitted them. If a builder attempts to front-run a profitable bundle they received, they risk losing the substantial fee from the original searcher, which may be greater than the profit from self-front-running.

What Is the “Proposer-Builder Separation (PBS)” Model in PoS and How Does It Affect MEV?
What Is the Relationship between a Searcher and a Block Builder in the Post-Merge Ethereum Ecosystem?
How Does a Proposer-Builder Separation (PBS) Architecture Aim to Solve This Issue?
How Does the Concept of ‘Proposer-Builder Separation’ (PBS) Relate to Flashbots?
Differentiate between a Traditional Prime Broker and a Digital Asset Prime Broker
What Is the Potential for ‘Share Manipulation’ and How Is It Prevented?
What Is the Role of a “Searcher” in the MEV Ecosystem?
How Does the Implementation of ‘Proposer-Builder Separation’ (PBS) Relate to Flashbots?

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