What Is the Primary Service Provided by Flashbots to Mitigate MEV?
Flashbots provides a private transaction relay service, specifically designed to mitigate Maximal Extractable Value (MEV) attacks like front-running. It allows users to send transactions directly to a block builder without exposing them to the public mempool.
This privacy prevents MEV bots from observing and exploiting the transaction, while also enabling users to pay a block builder directly for priority inclusion.
Glossar
Maximal Extractable Value
Value ⎊ Within cryptocurrency derivatives and financial engineering, Maximal Extractable Value (MEV) represents the profit achievable by strategically ordering transactions within a blockchain.
Private Transaction Relay
Relay ⎊ A Private Transaction Relay (PTR) within cryptocurrency, options, and derivatives represents a sophisticated architectural pattern designed to obfuscate the origin and destination of financial transactions, enhancing privacy and potentially mitigating regulatory scrutiny.
Flashbots
Architecture ⎊ Flashbots represents a pioneering effort in protocol-level organization, initially focused on mitigating Miner Extractable Value (MEV) within the Ethereum ecosystem, and now expanding its scope to broader blockchain infrastructure.