BlockchainAdvanced#Ethereum#MEV
Proposer-Builder Separation (PBS)
P
Definition
A design where the task of proposing a block is separated from the task of building it, aimed at mitigating MEV centralization.
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Concept Diagram
Key Takeaways
1
PBS separates the role of building blocks from proposing them to reduce MEV centralization
2
Builders compete to create the most profitable block while proposers simply select the best one
3
This prevents validators from needing sophisticated MEV extraction strategies themselves
4
MEV-Boost is the current implementation of PBS in Ethereum's proof of stake system
Practical Example
A validator running MEV-Boost receives block bids from multiple builders — Builder A offers 0.15 ETH, Builder B offers 0.12 ETH. The validator's proposer automatically selects Builder A's block for maximum revenue without needing to know the block contents.
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Related Terms
Blockchain
MEV (Maximal Extractable Value)The profit that can be gained by users (searchers/validators) by including, excluding, or reordering transactions in a block.
Blockchain
SequencerA node in a Rollup (L2) responsible for ordering transactions before they are batched and sent to the L1 (Ethereum).
Blockchain
FinalityThe moment at which it becomes impossible to change or revert a transaction once it has been added to the blockchain.
Blockchain
Base Layer (Layer 1)The foundational blockchain architecture (e.g., Bitcoin, Ethereum) that provides security and finality for the entire network.
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