Miner Extractable Value (MEV): The Biggest Thorn in DeFi
Decentralized finance is still in its infancy, but the design of popular blockchains is neglecting one important aspect: Transaction ordering. Miners have the power to decide over what transactions get executed where, and calculate the best outcome for themselves. This extraction of value is commonly called Miner Extractable Value (MEV) The current blockchain architectures are not designed to deal with these powers. The prevention mechanisms require consensus changes. The issue is so big, that not only regular people are getting screwed on ETH, but now the whole blockchain is at risk of attacks and all the dApps sitting on it.
Blockchain writer, DeFi disciple, member of Sovryn
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