In this track: Ethereum protocol concepts
advanced · 4 MIN READ

MEV and proposer incentives

Ordering and inclusion choices can affect economic outcomes.

LET’S PICTURE IT

The order of service can change which customer gets an opportunity.

SEE IT FOR YOURSELF
A transaction moves from Maya’s wallet through signing, node verification, peer sharing, a mempool, block inclusion and finality. Maya’s instructionTOLeo’s public addressAMOUNT0.01 ETHPretend transactionFirst, the wallet prepares a request. Maya’s walletSignature added ✓Private key stays in wallet 🔒Signed request WalletSigned requestNode AChecks ✓Node BChecks ✓Node CChecks ✓Node DChecks ✓NODE C’S LOCAL MEMPOOLVerify.Then share. Pending requestsProposed blockMaya → Leo · 0.01A proposer includes it. Nodes check the result. BlockIncludedCheckpointAgreementFinalizedValidator checkpoint votes support finality.Simplified model · not one vote per transaction
Illustration · no network calls
Prepare
→
Sign
→
Share
→
Include
→
Finalize

Maya prepares an instruction: send 0.01 pretend ETH to Leo.

A local simulation. Nothing is signed or sent to a network.

Define the extra value

MEV concerns value available through transaction inclusion, exclusion or ordering beyond ordinary transaction execution expectations. The exact opportunity depends on application state.

Separate participants

Searchers, builders and proposers can have different roles in constructing and selecting blocks. Do not assign every observed ordering choice to one universal actor.

Consider protocol effects

Ordering incentives can affect user execution, censorship pressure and network behavior. A profitable local opportunity can have wider costs.

Keep claims tied to evidence

A transaction sequence may suggest a strategy but does not by itself identify every off-chain agreement or payment. Analyze observable facts and stated assumptions separately.

Map the protocol concept

same candidate transactions
ordering A → one execution state path
ordering B → another state path

incentives can favor a particular ordering

A conceptual model. Exact fields, limits and processing rules must be checked against the intended network fork.

QUICK CHECK · NO PRESSURE

Can changing transaction order change application outcomes?

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