What Is the “Proposer-Builder Separation (PBS)” Model in PoS and How Does It Affect MEV?
PBS separates the role of proposing a block from the role of building the block's contents (ordering transactions). The block builder optimizes the block for MEV and submits it to the proposer, who then selects the most profitable block.
This separation aims to limit the proposer's ability to extract MEV directly and makes the MEV market more transparent and competitive, potentially reducing malicious front-running.
Glossar
PBS
Definition ⎊ Proposer-Builder Separation (PBS) is a mechanism designed to enhance network security and mitigate the negative effects of Maximal Extractable Value (MEV).
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 Architecture
Structure ⎊ Pbs Architecture refers to the Proposer-Builder Separation model implemented on Proof-of-Stake blockchains, where the responsibility for block construction (optimization for MEV) is separated from block validation (attestation and finalization).