Maximal Extractable Value (MEV)
Maximal Extractable Value (MEV) is a concept in blockchain that refers to the maximum value that miners or validators can extract from the manipulation of transactions within a block. MEV can occur when miners re-order, include, or exclude transactions in a way that benefits them, often at the expense of users. For example, front-running and sandwich attacks in DeFi can lead to higher MEV. MEV is a growing area of concern, particularly in decentralized finance (DeFi) and Ethereum, as it can create inefficiencies and unfairness in the transaction process. Solutions like Flashbots have emerged to mitigate MEV extraction.
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