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A Primer to Flashbots and MEVs – The Dark Forest of Ethereum
By The Babylonians  •  January 9, 2022
Maximum Extractable Value (MEV) is a measure representing the total value that can be extracted permissionlessly from the re-ordering, inclusion or censoring of transactions. https://explore.flashbots.net/ Since 1st January 2020, a staggering $895m of MEV has been extracted within the dark forest of Ethereum, the public Mempool. It is an underground adversarial battle of gas bidding wars between predatory bots attempting to extract profits at the expense of innocent users & network useability. Without a solution, MEV extraction opportunities would eventually converge towards a monopoly of centralized entities due to economies of scale thus undermining the neutrality and decentralization nature of Ethereum. Flashbots is a research and development organization funded by Paradigm with the aim to mitigate the negative externalities of MEVs and the uneven playing field. In just about 1 year, it has gained support from more than 90% of the hash rate on Ethereum and is currently the most viable MEV solution in the...
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By The Babylonians
The Babylonians is a personal financial blog inspired by a book titled “The Richest Man in Babylon”. This blog shares insightful and educational content on investing across 3 asset classes: Stocks, REITs and Crypto. The motivation behind The Babylonians is to help the average Joe (using myself as a test subject) escape from the rat race through following certain laws and principles of wealth.
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