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Former Binance CEO Changpeng "CZ" Zhao sparked an important discussion in the crypto community, launching a poll on whether BNB Chain should eliminate or aggressively reduce MEV issues. The majority of respondents, 82.6% of them, voted in favor of addressing MEV concerns, while 17.5% chose to leave it alone.
In response to the poll results, CZ offered his personal opinion stating: "I hate any type of 'front running,' and MEV looks like that to me." He further added that in a decentralized world, no one can completely stop MEV, but there are ways to reduce it.
Tomiwabold OlajideMaximal Extractable Value (MEV) is a concept that has gained prominence in the blockchain sector, notably in the context of decentralized finance (DeFi).
MEV refers to the profit that miners, validators and other parties can extract from the ordering, censoring or inserting of transactions within a block.
MEV issues and way forward
Maximal Extractable Value (MEV) is a complex yet fundamental element of all blockchains, including the BNB chain and Ethereum. While it presents issues such as arbitrage and sandwich attacks, it also plays an important function in incentivizing participation and safeguarding the network.
The difficulty of integrating MEV providers into current systems can present technical hurdles. Furthermore, issues regarding the transparency and competitiveness implications of MEV extraction have prompted concerns about the long-term viability and public perception of these activities.
The industry's progress on MEV has been significant, with various solutions being developed to mitigate its negative impacts and enhance efficiency.
The BNB Smart Chain community has worked hard on MEV since early 2023 and is finally on the path to delivering MEV solutions to validators.
To solve issues, BNB Chain is upgrading its MEV landscape using the Proposer-Builder Separation (PBS) model. This paradigm distinguishes block proposers (Validators) from block builders, allowing builders to create blocks and propose them to validators, who choose the most profitable ones.
Godfrey Benjamin
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