What Is Proposer-Builder Separation (PBS) in Ethereum’s PoS?
Proposer-Builder Separation (PBS) is an architectural change in Ethereum's Proof-of-Stake that separates the roles of creating a block (the "builder") and proposing a block to the network (the "proposer," who is the validator). The builder is responsible for ordering and optimizing transactions for MEV, while the proposer selects the most profitable block header offered by a builder.
This separation aims to limit the validator's direct control over transaction ordering, thus decentralizing MEV extraction and mitigating validator-based front-running.
Glossar
Block Proposer
Selection ⎊ Block Proposer functionality within a Proof-of-Stake consensus mechanism represents a critical node responsible for curating the next block of transactions, directly influencing network throughput and security.
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.
Block Builder
Architecture ⎊ Block Builder, within cryptocurrency and financial derivatives, represents a foundational layer for constructing complex trading strategies and decentralized applications.
PBS
Definition ⎊ Proposer-Builder Separation (PBS) is a mechanism designed to enhance network security and mitigate the negative effects of Maximal Extractable Value (MEV).
Proposer-Builder Separation (PBS)
Mechanism ⎊ Proposer-Builder Separation (PBS) represents a critical architectural refinement within blockchain systems, specifically designed to decouple the roles of proposing new blocks from the execution of those blocks, enhancing scalability and mitigating risks associated with Maximal Extractable Value (MEV).
Proposer
Role ⎊ A proposer in a Proof-of-Stake blockchain is a validator node selected to create and broadcast the next block to the network.