How Does the “Proposer-Builder Separation” (PBS) Model Enhance Security?
The Proposer-Builder Separation (PBS) model enhances security by decentralizing the power of MEV extraction. By separating the block creation (builder) and block proposal (proposer/validator) roles, it prevents the validator from unilaterally executing all MEV and censoring transactions.
The builder competes to create the most valuable block, which is then submitted privately to the proposer. This competition reduces the centralization risk associated with a single validator having complete control over transaction ordering and inclusion, thereby enhancing the chain's censorship resistance and fairness.
Glossar
PBS Model
Calibration ⎊ PBS Model implementation within cryptocurrency derivatives necessitates precise calibration of volatility surfaces, acknowledging the non-stationary nature of implied volatility and the impact of market microstructure effects unique to digital asset exchanges.
Censorship Resistance
Immutability ⎊ The core of this property is the cryptographic linking of data structures, making retroactive alteration of validated transactions computationally infeasible.
Builder
Function ⎊ A Builder, in the context of modern blockchain architecture, is an entity responsible for assembling and proposing valid transaction sets to the network for inclusion in a new block.
PBS
Definition ⎊ Proposer-Builder Separation (PBS) is a mechanism designed to enhance network security and mitigate the negative effects of Maximal Extractable Value (MEV).