Support for Cardano’s Approach to Maximal Extractable Value
In a recent discussion on social media platform X, a developer known as dori expressed strong support for the approach Cardano (ADA) takes regarding Maximal Extractable Value (MEV) on its blockchain. dori highlighted how Cardano’s unique eUTXO model, combined with the Ouroboros Proof of Stake (PoS) consensus mechanism, effectively minimizes the likelihood of MEV issues arising at a protocol level—a contrast to Ethereum, which is often criticized for its design vulnerabilities regarding this matter.
Understanding Maximal Extractable Value
MEV is essentially profit that can be realized through the manipulation of transaction orders—actions typically performed by miners, validators, or automated systems known as “MEV bots”. These bots monitor the blockchain’s pending transactions (found in what is known as the mempool) and are designed to insert their transactions ahead of others to capitalize on anticipated price movements.
Concerns Over Transaction Manipulation
dori drew an analogy to traditional banking, noting that if a bank were to use transaction data to gain financial advantage over customers, it would be a scandal. However, within the crypto sector, leveraging transaction data for profit via MEV has become a commonly accepted practice, evolved into a competitive industry.
dori raised concerns that casual users are losing minor amounts of value during each transaction due to this manipulation by bots or block producers.
Cardano’s Advantages
Highlighting Cardano’s benefits, dori asserted that its locally validated transactions mean there isn’t a global mempool that bots can exploit, thereby protecting users from the volatility caused by such activities. He underscored that Cardano’s design promotes decentralization and equitable access to its services, making it a standout in comparison to Ethereum and other blockchain frameworks where MEV remains a prevalent issue.
Community Support and Industry Trends
Other users echoed dori’s sentiments, praising Cardano’s architecture for enhancing user experience by effectively avoiding MEV pitfalls. Furthermore, the Neo X blockchain has also recently upgraded its system to protect against MEV, with ambitions to enhance decentralization and resist censorship within its ecosystem. This move aligns with a growing push within the crypto space towards creating fairer transaction environments, free of exploitative practices.
