By Blockchain News | Created at 2024-10-16 18:20:10 | Updated at 2024-10-16 21:03:07
2 hours ago
Felix Pinkston Oct 16, 2024 18:07
BNB Chain introduces Proposer-Builder Separation to tackle MEV challenges, enhancing security and efficiency in blockchain transactions. Learn about MEV, its implications, and protective measures.
BNB Chain is making strides in addressing the complex issue of Maximal Extractable Value (MEV), a phenomenon prevalent in blockchain ecosystems like BSC and Ethereum. MEV, while beneficial in incentivizing network participation, poses challenges such as arbitrage and sandwich attacks.
Proposer-Builder Separation Model
To mitigate these challenges, BNB Chain is implementing the Proposer-Builder Separation (PBS) model. This innovative approach separates the roles of block proposers, known as validators, from block builders. Builders are responsible for creating blocks, which they propose to validators, who then choose the most profitable blocks to add to the blockchain. This separation aims to enhance network security and transaction efficiency.
Enhancing Transaction Privacy
By utilizing privacy-protecting Remote Procedure Calls (RPCs), BNB Chain aims to safeguard transactions from potential MEV-related attacks. When users execute transactions via private RPCs, their transactions are sent to a builder's private mempool, keeping them invisible to attackers in the public mempool. Consequently, the risk of sandwich attacks is significantly reduced.
Decentralized exchanges (DEXs) and builder providers, such as PancakeSwap and 48 Club, offer free MEV protection features. Users can explore the details of these privacy-protecting RPCs in their respective documentation.
Optimizing Transaction Speed
Transaction inclusion speed on the blockchain is influenced by the number of validators registered with each builder and the level of usage each builder experiences. More validators and higher usage result in quicker transaction inclusion, as validators are more inclined to select lucrative bundles created by active builders.
Users can access the latest MEV builder data via the Dune dashboard, which provides insights into the most efficient builders for broadcasting transactions. Additionally, building a proxy to broadcast transactions to multiple builders is recommended to maximize transaction speed.
For advanced users, premium privacy-protecting RPC services are available, albeit requiring users to set up their own RPC proxy, as these services typically do not provide a direct RPC URL for wallet configuration.
BNB Chain's efforts in refining MEV management reflect its commitment to enhancing the security and efficiency of blockchain transactions. For more detailed insights, visit the BNB Chain Blog.
Image source: Shutterstock
