What is the value extracted by miners (MEV)?

The value extracted by miners, or MEV, is the profit that miners or other network participants receive by optimizing transactions and changing the order in which they are processed on the blockchain.

MEV can be either legal or illegal. Legitimate MEV involves optimizing transactions to improve efficiency and reduce transaction fees. Illegal MEC is associated with manipulation and fraud, for example, using bots to get ahead of other network participants and get more profit.

How does MEV work?

To understand how MEV works, it is important to know how transactions are processed on the blockchain:

• Transactions are collected in a pool and processed by miners.

• Miners select transactions from the pool and include them in the block.

• The block is added to the blockchain and becomes part of the blockchain.

Miners can choose the transactions that bring them the most profit. They can change the order of transactions and include or exclude certain transactions from the block. This allows them to earn additional profit at the expense of other network participants.

Examples of successful MEV bots

There are many MEV bots that use different strategies to make a profit. Here are some examples of successful MEV bots:

• Flashbots is a platform that allows miners to pool their resources to process transactions more efficiently. Flashbots uses sophisticated algorithms to optimize transactions and minimize fees.

• MEV - Geth is an MEV  bot that runs on the Ethereum platform. MEV - Geth uses various strategies, such as arbitrage, to profit from MEV.

It is important to note that the use of MEV bots can lead to conflicts of interest and violation of the integrity of the blockchain. Therefore, you should be careful when using MEV bots and follow the platform's rules.

In conclusion, MEV is an important concept in the world of blockchain and cryptocurrencies. It allows network participants to make a profit by optimizing transactions. However, the use of MEV can also lead to manipulation and fraud. Therefore, it is important to understand how MEV works and follow the platform's rules when using it.