Trends & Signals
By: KOSALA YAPA
Explore the latest insights, thought leadership, and research from FCAT®
MEV and Its Impact on the Future of DeFi
April 6, 2023
Although the blockchain architecture is decentralised, block content creation is a centralised process performed by miners. Therefore, miners have complete control over transaction ordering and inclusion, leading to the Miner (or Maximal) Extractable Value (MEV) problem. MEV, sometimes called Block Extractable Value, is the profit made by including, excluding, or reordering the transactions in a block. This profit is considered separate from block rewards or transaction fees the miner would otherwise receive.1