Introduction To MEV And Its Impact: Definition, Examples, And Ripple Effects

Introduction To MEV And Its Impact: Definition, Examples, And Ripple Effects
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What is it?
MEV (Miner Extractible Value or Maximal Extracticle Value) is the income miners can make by changing the order of transactions according to their benefit. They can strategically order transactions within the blocks they mine and use various techniques to make more money. This practice has become so common among miners that hundreds of millions of dollars worth of Ethereum has been extracted via MEV.
Types and Examples
There are plenty of strategies that miners and validators can use, often simultaneously, to extract gains via MEV. Let us look at some of them.
Front-running is a technique wherein one tries to profit from knowing about upcoming transactions before they happen. Imagine you had insider information that a stock would shoot up and buy it. When the price of the stock rises, you can see it if you wish to, and you’ll make a profit. This is exactly it.
Miners and validators constantly scan the list of upcoming transactions called the mempool. When they

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