BNB Chain Tackles Maximal Extractable Value (MEV) Challenges

BNB Chain is advancing its strategy to tackle the intricate issue of Maximal Extractable Value (MEV), a common occurrence in blockchain environments such as BSC and Ethereum. While MEV can motivate network engagement, it also introduces risks like arbitrage and sandwich attacks.

Proposer-Builder Separation Model

To alleviate these issues, BNB Chain is adopting the Proposer-Builder Separation (PBS) model. This cutting-edge strategy distinguishes the roles of block proposers, known as validators, from block builders. Builders are charged with assembling blocks and proposing them to validators, who then determine the most profitable blocks to incorporate into the blockchain. This division is designed to improve network security and transaction efficiency.

Enhancing Transaction Privacy

By leveraging privacy-oriented Remote Procedure Calls (RPCs), BNB Chain seeks to protect transactions from possible MEV-related threats. When users perform transactions through private RPCs, their actions are directed to a builder’s private mempool, rendering them hidden from potential attackers in the public mempool. As a result, the likelihood of sandwich attacks is greatly diminished.

Decentralized exchanges (DEXs) and builder providers like PancakeSwap and 48 Club offer complimentary MEV protection functionalities. Users can find more details about these privacy-focused RPCs in their respective documentation.

Optimizing Transaction Speed

The speed at which transactions are included on the blockchain is determined by the number of validators linked to each builder and the volume of traffic each builder accommodates. An increase in validators and higher engagement leads to faster transaction incorporation, as validators are more inclined to select profitable bundles from active builders.

Users can access real-time MEV builder statistics through the Dune dashboard, which showcases the most effective builders for submitting transactions. Moreover, creating a proxy to send transactions to multiple builders is advisable to optimize transaction speed.

For more experienced users, premium privacy-protecting RPC services are available, though they often necessitate users establishing their RPC proxy, as these services usually do not provide a direct RPC URL for wallet setup.

BNB Chain’s initiatives in enhancing MEV management illustrate its dedication to improving the security and efficiency of blockchain transactions. For more in-depth insights, visit the BNB Chain Blog.

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