What Is the Primary Difference between a Validator’s Role in MEV and a Traditional Market Maker’s Role?
A traditional market maker (MM) provides liquidity by quoting bid and ask prices and profits from the spread, acting within regulatory frameworks. A validator in MEV extracts value by ordering transactions within a block, effectively acting as a 'centralized' arbiter of execution order.
The MM's profit comes from the spread and volume; the validator's MEV profit comes from exploiting the order flow itself, often at the expense of other users.