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How Does MEV Create a Potential for Network Centralization?

MEV creates a potential for centralization because the ability to extract the highest value requires significant technical sophistication and specialized infrastructure, such as direct communication channels with miners/validators. This raises the barrier to entry, concentrating the MEV profits and the block production process into the hands of a few large, well-capitalized searchers and block producers.

This can lead to a less decentralized network, as smaller participants cannot compete effectively.

How Does the ‘Cost of Production’ Relate to the Minimum Sustainable Price for a Miner?
How Is the 32 ETH Requirement a Barrier to Entry for Small Investors?
What Are the Risks Associated with the Concentration of the Stablecoin Market in a Few Issuers like Tether (USDT)?
Why Does the MEV Supply Chain Lead to Centralization Concerns?