Exploring Bitcoin's MEV-like Dynamics in Comparison to Ethereum
Exploring Bitcoin's MEV-like Dynamics in Comparison to Ethereum
This article investigates whether Bitcoin employs Miner Extractable Value (MEV) to order transactions, drawing parallels with Ethereum's MEV practices. It explains how MEV typically involves bots reordering transactions to extract value through worse prices and higher costs, and questions if similar dynamics exist within Bitcoin's mempool and policy layer.
In crypto, MEV typically refers to bots and searchers on chains like Ethereum reordering, inserting, or censoring transactions around DEX trades and liquidations to extract value from users in the form of worse prices, failed transactions, and higher costs. However, did you know that Bitcoin also has MEV-like dynamics at the mempool and policy layer?