MEV (Miner Extractable Value)

Understand crypto terminology related to micro-segmentation, which divides networks into smaller, secure sections to enhance security and efficiency.

Miner Extractable Value (MEV) refers to the potential profit that miners can earn by strategically ordering, including, or excluding transactions in a block they create. This occurs during the process of confirming transactions on blockchain networks, primarily in systems using proof-of-work.Miners gain an advantage over regular users since they control the order in which transactions are processed. For instance, they can prioritize transactions that involve high fees or execute trades that capitalize on price fluctuations across decentralized exchanges.MEV can lead to practices like front-running, where a miner executes a transaction before others to exploit price movements. This can negatively impact users by increasing costs and making the system less fair.While MEV can enhance miner profits, it raises concerns about fairness and market integrity, prompting discussions in the community regarding potential solutions and mitigations.

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